CVS Health Corporation (CVS) is a leading provider of health solutions, including healthcare and retail pharmacy services. With a market capitalization of $115.6 billion, the company offers prescription drugs, beauty, personal care, cosmetics and healthcare products, as well as pharmacy benefit management (PBM), disease management and administrative services.
Companies worth $10 billion or more are typically described as “large-cap stocks,” and CVS fits that bill perfectly, with its market capitalization surpassing this mark, underscoring its size, influence, and dominance within the healthcare industry.
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CVS fell 9.1% from its 52-week high of $98.43 recently reached on May 14. Over the past three months, CVS shares have soared 9.6%, compared with the S&P 500 Index ($SPX)’s rise of 10.6%.
CVS shares are up 12.8% year to date and 40.7% over the past 52 weeks, significantly outperforming SPX’s year-to-date gains of 11.2% and returns of 28.2% over the past year.
Confirming the bullish trend, CVS has been trading above its 50-day and 200-day moving averages since early April.
On May 6, CVS released its first-quarter fiscal 2026 earnings and its stock rose 7.7%. Its revenue rose 6.2% year over year to $100.4 billion, surpassing the $100 billion mark for the quarter. Growth was supported by higher pharmacy sales, contributions from acquired Rite Aid assets and strength in the Health Services segment. Adjusted EPS hit $2.57, up 12.5% year over year and comfortably above Wall Street expectations.
Reflecting management’s confidence, CVS raised its full-year 2026 guidance, raising its adjusted EPS outlook to $7.30-$7.50 from $7.00-$7.20.
In the competitive arena of healthcare plans, UnitedHealth Group Incorporated (UNH) has taken the lead over CVS in 2026, with a 14.5% rebound. However, UNH is up 24% over the past 52 weeks, behind CVS.
Wall Street analysts remain optimistic about CVS’s prospects. The stock has a consensus rating of “Strong Buy” from the 24 analysts covering it, and the average price target of $102.26 suggests a potential upside of 14.3% from current price levels.
On the date of publication, Kritika Sarmah had no (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. This article was originally published on Barchart.com