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With a market cap of $100.4 billion, CVS Health Corporation (CVS) delivers a wide range of services through its Health Care Benefits, Health Services, and Pharmacy & Consumer Wellness segments. It provides insurance products, pharmacy benefit management, and retail pharmacy services to individuals, employers, and government programs.
Shares of the Woonsocket, Rhode Island-based company have underperformed the broader market over the past 52 weeks. CVS stock has increased 21.1% over this time frame, while the broader S&P 500 Index ($SPX) has gained 29.8%. In addition, CVS stock has declined marginally on a YTD basis, compared to SPX's 4.8% return.
However, shares of the drugstore chain and pharmacy benefits manager have outpaced the State Street Health Care Select Sector SPDR ETF's (XLV) 4.3% rise over the past 52 weeks.
Shares of CVS Health fell marginally on Feb. 10 as Q4 2025 adjusted EPS declined to $1.09 and adjusted operating income fell 4.8% year-over-year. Concerns were amplified by a sharp 45.3% drop in full-year operating income, driven by a $5.7 billion goodwill impairment charge and about $1.2 billion in litigation costs, which overshadowed record revenue of $402.1 billion. Additionally, the company lowered its 2026 cash flow from operations guidance to at least $9 billion.
For the fiscal year ending in December 2026, analysts expect CVS' adjusted EPS to grow 5.8% year-over-year to $7.14. The company's earnings surprise history is promising. It beat the consensus estimates in the last four quarters.
Among the 24 analysts covering the stock, the consensus rating is a “Strong Buy.” That’s based on 20 “Strong Buy” ratings, two “Moderate Buys,” and two “Holds.”
This configuration is slightly more bullish than three months ago, with 19 “Strong Buy” ratings on the stock.
On Apr. 15, Baird raised its price target on CVS Health to $94 while maintaining an “Outperform” rating.
The mean price target of $94.96, representing a premium of 21.2% to CVS' current price. The Street-high price target of $105 suggests a nearly 34% potential upside.
