Medicare Advantage margin compression or expansion - CMS reimbursement rate changes and medical cost trends directly impact Aetna profitability
PBM contract renewals and pricing pressure - large client losses (e.g., Centene, Blue Shield) or spread compression from transparency initiatives
Retail pharmacy script volumes and reimbursement rates - DIR fees, GER (generic effective rate) changes, and traffic trends
Oak Street Health and primary care expansion ROI - integration execution and member growth in value-based care
low - Healthcare spending is non-discretionary with 70%+ of revenue from government programs (Medicare, Medicaid) providing stable demand. Prescription volumes are largely inelastic to GDP fluctuations. Front-store retail (~10% of revenue) has modest sensitivity to consumer spending, but pharmacy services and insurance are recession-resistant.
Rising rates increase financing costs on $50B+ debt load (weighted average ~4.5% cost of debt), adding $50-100M in annual interest expense per 100bps increase. Higher rates also compress valuation multiples for low-growth healthcare stocks trading on FCF yield. Conversely, CVS benefits from higher investment income on insurance float ($20B+ in cash and investments at Aetna). Net impact is moderately negative as debt service outweighs float income.
PBM disintermediation risk from biosimilar adoption, direct manufacturer-to-payer contracting, and potential legislation requiring 100% rebate pass-through to plan sponsors
Medicare Advantage reimbursement pressure as CMS tightens risk adjustment coding and reduces benchmark rates to control federal spending
Amazon Pharmacy and Mark Cuban Cost Plus Drugs disrupting retail pharmacy economics through transparent pricing and mail-order penetration
value - Trading at 0.2x P/S and 7.8% FCF yield, CVS attracts deep value investors betting on operational turnaround, PBM margin stabilization, and debt paydown. Dividend yield of 4%+ appeals to income-focused funds. Activist investors (e.g., Glenview Capital) have pushed for strategic alternatives including potential breakup of integrated model.
Trend
+22.6% vs SMA 50 · +24.7% vs SMA 200
Momentum
Strong accumulation on above-average volume. Buyers are absorbing supply aggressively — any positive catalyst could trigger a rapid covering move.
Based on volume distribution analysis. Direct short interest data (short float %, days to cover) is not available in current data sources.
Analyst consensus estimates · Actuals replace estimates as reported
| Year | Revenue Est. | Rev Gth | EPS Est. | EPS Gth | Range | Analysts |
|---|---|---|---|---|---|---|
FY2025 | $400.1B $398.4B–$402.8B | — | $6.67 | — | ±1% | High20 |
FY2026(current) | $406.6B $402.1B–$416.4B | ▲ +1.6% | $7.33 | ▲ +9.9% | ±4% | High17 |
FY2027 | $424.1B $408.8B–$442.8B | ▲ +4.3% | $8.30 | ▲ +13.2% | ±3% | High18 |
Dividend per payment — last 8 periods
New York, New York--(Newsfile Corp. - May 12, 2026) - WHY: Rosen Law Firm, a global investor rights…
CVS Health Corporation is an American healthcare company that owns CVS Pharmacy, a retail pharmacy chain; CVS Caremark, a pharmacy benefits manager; and Aetna, a health insurance provider, among many other brands.
| Symbol | Price | Day % | Mkt Cap↓ | P/E | Rev Grw | Margin | ELO |
|---|---|---|---|---|---|---|---|
CVS◀ | $95.19 | +1.84% | $117.7B | 40.0 | +784.8% | 44.0% | 1515 |
| $989.87 | +1.96% | $910.7B | 34.2 | +4470.5% | 3166.4% | 1501 | |
| $224.26 | +0.05% | $533.0B | 25.7 | +604.8% | 2845.6% | 1514 | |
| $207.94 | -0.57% | $358.7B | 98.8 | +856.7% | 691.0% | 1493 | |
| $396.39 | +1.17% | $349.1B | 29.0 | +1181.4% | 269.4% | 1527 | |
| $112.39 | -0.82% | $274.9B | 30.8 | +118.1% | 2811.5% | 1517 | |
| $336.29 | -0.64% | $177.9B | 22.8 | +992.4% | 2098.7% | 1502 | |
| Sector avg | — | +0.43% | — | 40.2 | +1287.0% | 1703.8% | 1510 |