The Basics of CVS Stock
CVS Health Corporation, formerly CVS Caremark Corporation, is an American healthcare company that owns and operates CVS Pharmacy, a retail pharmacy chain; CVS Caremark, a pharmacy benefits manager; and Aetna, a health insurance provider. CVS Health is one of the largest retail health and pharmacy companies in the United States and is headquartered in Woonsocket, Rhode Island. CVS stock is traded on the New York Stock Exchange (NYSE) under the ticker symbol “CVS”.
CVS Stock Price History
CVS’ stock price history has been volatile over the years. The stock price has fluctuated between approximately $40 and $80 over the past decade. In 2020, the stock price peaked at $94.22 and has since seen a gradual decline due to the ongoing COVID-19 pandemic. Despite this decline, the stock price is still above its pre-pandemic levels.
Factors Influencing CVS Stock Price
The stock price of CVS is influenced by a variety of factors, including the company’s financial performance, the performance of the health care and retail industries, and macroeconomic factors such as the overall health of the U.S. economy. Additionally, changes in government policies, including changes to the Affordable Care Act, can have an impact on CVS’ stock price.
CVS’ Recent Financial Performance
CVS’ financial performance has remained strong despite the challenges posed by the COVID-19 pandemic. In the fourth quarter of 2020, the company reported total revenue of $68.6 billion, a 7.2% increase over the same period in 2019. The company also reported earnings per share of $1.93, a 6.6% increase over the same period in 2019.
Outlook for CVS Stock
The outlook for CVS stock is generally positive. The company’s financial performance is expected to remain strong, and the ongoing COVID-19 pandemic is expected to drive demand for its products and services. Additionally, the company could benefit from the Biden administration’s proposed health care reforms, which could increase demand for CVS’ products and services.
Analysts’ Recommendations for CVS Stock
Analysts have generally been bullish on CVS stock. According to FactSet, the average recommendation for CVS stock is “overweight”, with 13 of the 17 analysts surveyed recommending the stock as a “buy” and 4 recommending it as a “hold”. The average price target for the stock is $92.38, implying potential upside of 8.3% from the current price of $85.24.
CVS Stock Performance Compared to Peers
CVS’ stock performance has been strong compared to its peers. Over the past year, CVS’ stock price has increased by 8.4%, while the S&P 500 and the S&P 500 Health Care index have increased by 14.7% and 15.3%, respectively. CVS’ stock price has also outperformed Walgreens Boots Alliance, its closest competitor, which has seen its stock price decline by 4.7% over the same period.
Risks to Consider Before Investing in CVS Stock
Investors should consider several risks before investing in CVS stock. These include the potential for changes in government policies and regulations, the potential for increased competition, and the potential for changes in the health care and retail industries. Additionally, the ongoing COVID-19 pandemic could continue to have an impact on the company’s financial performance.
Bottom Line
CVS Health has seen its stock price fluctuate over the years, but the company’s financial performance has remained strong. Analysts are generally bullish on the stock, and the potential for upside is supported by the Biden administration’s proposed health care reforms. However, investors should consider the potential risks before investing in CVS stock.