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Headquartered in Woonsocket, Rhode Island, CVS Health Corporation (CVS) is a healthcare platform that spans retail pharmacies, pharmacy benefits management through CVS Caremark, specialty pharmacy services, and walk-in care clinics via MinuteClinic. The company also delivers health insurance through Aetna and supports seniors through Oak Street Health.
“Large-cap” companies, typically valued above $10 billion, tend to anchor investor expectations through scale and stability. CVS Health firmly fits the category with a market cap of nearly $101.4 billion, supported by its strategic focus on integrated care, telehealth expansion, and cost-efficient services.
CVS shares currently trade 6.2% below their October high of $85.15. Even so, the stock has gained 11.6% over the past three months, narrowing the gap with the S&P 500 Healthcare Sector SPDR (XLV), which advanced 15.6% during the same period.
Over a longer horizon, CVS has shown clearer leadership. The stock has climbed 35.3% over the past 52 weeks and 77.9% year-to-date (YTD), far outpacing XLV’s respective gains of 8.4% and 15.2%.
The technical backdrop remains constructive. Since mid-August, CVS has been trading consistently above its 50-day moving average, with only brief pullbacks. It also remains above the 200-day moving average since early August, signaling sustained strength across both intermediate and long-term trends.
However, the stock saw a momentary setback following the company’s Q3 fiscal 2025 earnings release on Oct. 29, when the stock fell nearly 2% and then almost 5% the next day. The decline was driven by a $5.7 billion non-cash goodwill impairment charge in the Health Care Delivery segment, which overshadowed otherwise strong quarterly results and an improved full-year outlook.
Keeping that aside, Q3 revenue reached $102.9 billion, exceeding Street’s expectations of $98.3 billion and improving 7.8% year over year (YoY). Adjusted EPS rose 46.8% from the year-ago value to $1.60, and came in ahead of Wall Street’s estimate.
Also, management raised its full-year 2025 adjusted EPS guidance to a range of $6.55 to $6.65, up from $6.30 to $6.40, and updated its cash-flow-from-operations target to a range of $7.5 billion to $8 billion from at least $7.5 billion
Sector comparisons further emphasize CVS’ strength. Centene Corporation (CNC), a direct competitor, has declined 34.2% over the past 52 weeks and 34.9% YTD, highlighting CVS’ superior positioning and execution.
Analysts share this view. CVS carries a “Strong Buy” consensus rating from 24 analysts, and its mean price target of $91.56 implies a premium of 14.7% to current levels.
