Long-Term Investors Should Consider Buying the Dips in CVS Health Corporation [CVS] Stock

CVS Health Corporation [CVS] shares are down more than -5.26% this year and recently decreased -0.03% or -$1.86 to settle at $69.72. Analysts expect CVS to grow earnings at a 4.60% annual rate over the next 5 years. CVS has a short ratio of 1.81. This implies that the market is currently less bearish on the outlook for CVS.

On 10, December 2020, CVS Health Increases Access to Flu Vaccines in Communities of Need. According to news published on Yahoo Finance, CVS Health (NYSE: CVS) today announced it is supporting a nearly $3 million commitment to increasing access to flu vaccines for underserved communities throughout the country. Through its Project Health initiative, CVS Health is contributing $2 million to the National Association of Free and Charitable Clinics (NAFC) to help distribute flu vaccines to those who may otherwise not have access. Additionally, the company is working with Bank of America and General Motors to support increased access to flu vaccines in even more communities nationwide.

Analyst Birdseye View:

The most recent analyst activity for CVS Health Corporation [NYSE:CVS] stock was on July 01, 2020, when it was Initiated with a Mkt perform rating from SVB Leerink, which also raised its 12-month price target on the stock to $72. Before that, on September 17, 2020, Piper Sandler Recapitulated an Overweight rating and elevated its amount target to $72. On May 14, 2020, Credit Suisse Upgrade an Outperform rating and boosted its price target on this stock to $75. On September 27, 2019, RBC Capital Mkts Resumed an Outperform rating and increased its price target to $85. On September 12, 2019, Deutsche Bank Initiated a Buy rating. On June 05, 2019, Standpoint Research Upgrade a Buy rating. On April 29, 2019, Credit Suisse Downgrade a Neutral rating and decreased its target amount on this stock from $73 to $61.

In the past 52 weeks of trading, this stock has oscillated between a low of $52.04 and a peak of $76.44. Right now, the middling Wall Street analyst 12-month amount mark is $80.00. At the most recent market close, shares of CVS Health Corporation [NYSE:CVS] were valued at $69.72. According to the average price forecast, investors can expect a potential return of -1.46%.

FUNDAMENTAL ANALYSIS

CVS Health Corporation [NYSE:CVS] most recently reported quarterly sales of 67.05 billion, which represented growth of 3.50%. This publicly-traded organization’s revenue is $884,748 per employee, while its income is $22,859 per employee. This company’s Gross Margin is currently 38.50%, its Operating Margin is 5.10%, its Pretax Margin is +3.51, and its Net Margin is +2.58. Continuing to look at profitability, this corporation’s Return on Assets, Equity, Whole Principal & invested Principal is sitting at 3.14, 10.86, 8.91 and 4.78 respectively.

The Principal structure of this organization shows its whole liability to whole principal at 58.22 and the whole liability to whole assets at 39.68. It shows enduring liability to the whole principal at 54.70 and enduring liability to assets at 0.37 while looking for an extended time period.

Readers are usually of view to make a close observation to the indicators that support and make resistance before moving to any particular stock. As of now, the company’s stock is sitting at 68.82 points at 1st support level, the second support level is making up to 67.93. But as of 1st resistance point, this stock is sitting at 71.47 and at 73.23 for 2nd resistance point.

CVS Health Corporation [CVS] reported its earnings at $1.66 per share in the fiscal quarter closing of 9/29/2020. The Analysts for Wall Street were expecting to report its earnings at $1.33/share signifying the difference of 0.33 and 24.80% surprise value. Comparing the previous quarter ending of 6/29/2020, the stated earnings were $2.64 calling estimates for $1.93/share with the difference of 0.71 depicting the surprise of 36.80%.

Important Ratio’s To Watch

Meanwhile, turning our focus to liquidity, the Current Ratio for CVS Health Corporation [NYSE:CVS] is 1.00. Likewise, the Quick ratio is also the same, showing Cash ratio at 0.15. Now if looking for a valuation of this stock’s amount to sales ratio it’s 0.38, it’s amount to book ratio is 1.51 and showing 11.51 of P/E (TTM) ratio.

Insider Stories

The most recent insider trade was by Lotvin Alan, EVP and President-CVS Caremark, and it was the sale of 7138.0 shares on Nov 13. Flum Joshua Matthew, the EVP, ENT STRATEGY & DIGITAL, completed a sale of 21460.0 shares on Nov 10. On May 26, Mayhew Jonathan E., EVP – Transformation, completed a sale of 10556.0 shares.