Zacks Investment Research·1d ago
Here's Why CVS Health (CVS) is a Strong Value StockWondering how to pick strong, market-beating stocks for your investment portfolio? Look no further than the Zacks Style Scores.
CVS revenue reached $108.4B in 2026Q3 with 5.4% year-over-year growth, while the combined ratio improved to 96.7% from 103.1% a year earlier, suggesting underwriting has moved closer to breakeven.
Price trend, volume and key moving averages
Start with the evidence for owning the stock and the risks that can break the thesis.
Revenue grew 5.4% to $108.4B in 2026Q3 while the combined ratio tightened to 96.7%, though the thin operating margin near 3.3% and the 2025Q3 net loss of $4.0B suggest profitability remains fragile.
CVS Health’s integrated model combines Aetna insurance, CVS Caremark PBM, retail pharmacy, and care delivery services into a single platform. This vertical integration gives the company a competitive edge by offering a more holistic, potentially cost‑effective approach to healthcare.
Recent purchases of Oak Street Health and Signify Health strengthen CVS’s primary care and home‑healthcare offerings. The company plans to open 1,500 HealthHub locations by the end of 2025, broadening its service footprint and revenue streams.
Total revenues reached a record $402.1 billion in 2025, up 7.8% from the prior year. This growth reflects the success of CVS’s integrated services and expanding footprint.
Trailing total returns as of 11/7/2026, which may include dividends or other distributions. Benchmark is S&P 500 (^GSPC).
Check whether operating performance supports the current valuation.
Recent results and news deserve attention only when they alter the forward view.
| Quarter | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|
Q4 2026Latest Nov 4, 2026 | $2.09+26.7% vs $1.65 | $108.4B+3.5% vs $104.7B |
Q3 2026 Aug 5, 2026 | $2.58+39.5% vs $1.85 | $106.1B+6.1% vs $100.0B |
Q2 2026 May 6, 2026 | $2.57+17.9% vs $2.18 | $100.4B+5.7% vs $95.0B |
Q1 2026 Feb 10, 2026 | $1.09+9.0% vs $1.00 | $105.7B+1.9% vs $103.7B |
Wondering how to pick strong, market-beating stocks for your investment portfolio? Look no further than the Zacks Style Scores.
CVS Health will split into two public companies by 1H 2028, separating its pharmacy and health services businesses in a tax-free transaction. I estimate intrinsic value at $90–$100 per share, 13–25% above current levels, based on sum-of-the-parts analysis and 2026–2027 guidance. CVS guides 2026 adjusted EPS to at least $8.20, with a 2027 floor of $8.65, and resumes buybacks with $11.5B authorized.
CVS' recent decision to divide its retail pharmacies from its insurance and pharmacy-benefit operations has raised hopes of consumer savings as Americans continue to reel from high costs of living.
CVS plans to separate its retail pharmacy business by 2028 as stronger Q3 earnings, raised 2026 guidance and Aetna's recovery shape its outlook.
Benchmark CVS against direct peers instead of judging its metrics in isolation.
Key metrics vs top competitors for CVS Health Corp. (CVS)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $83.85 | $106.99B | 60.32 | 7.85% | 0.44% | 2.34% | 3.19% | |
| $394.15 | $357.95B | 29.79 | 11.81% | 3.53% | 15.18% | 2.21% | |
| $293.59 | $77.66B | 13.24 | 11.26% | 2.27% | 15.16% | 2.06% | |
| $425.62 | $92.3B | 16.94 | 12.62% | 2.55% | 11.56% | 1.62% | |
| $433.74 | $52.08B | 44.08 | 10.06% | 0.88% | 6.89% | 0.82% | |
| $1060.84 | $126.45B | 27.64 | 12.36% | 1.12% | — | 0.29% |
CVS Health Corp. (CVS) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
Verify the primary filings, follow material updates, and answer the remaining questions.
CVS Health Corp. (CVS) SEC filings — annual & quarterly reports (10-K, 10-Q)
Aug 5, 2026·SEC
May 18, 2026·SEC
May 6, 2026·SEC
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CVS Health Corp. (CVS) stock FAQ — growth, dividends, profitability & financials explained
CVS Health Corp. (CVS) grew revenue by 7.8% in fiscal year 2025, compared with the prior fiscal year.
Yes. CVS Health Corp. (CVS) earned $4.91B in net income over the trailing twelve months (a 1.2% net margin).
Yes. CVS Health Corp. (CVS) pays a dividend that yields 3.19% at the current price, a moderate yield.
CVS Health Corp. (CVS) had a return on equity (ROE) of 2.3% in fiscal year 2025. That is below the market's typical 10-15%.
CVS Health Corp. (CVS) has a combined ratio of 97.4%. A ratio below 100% indicates underwriting profitability.
