Is CVS Health Corporation (NYSE:CVS) A Safe Bet For Investors?


CVS Health Corporation (NYSE:CVS) closed its last session at $69.79. The stock traded within a range of $69.56 and $70.22. The company operates in the Healthcare sector with a market capitalization of 71.88 Million. Trading volume for CVS Health Corporation was 6.57 Million in its previous trading session. Currently, CVS Health Corporation (NYSE:CVS) has an average volume of 9.59 Million.

Company Profile

CVS Health Corporation is a pharmacy innovation company. Its offerings include pharmacy benefit management services, mail order, retail and specialty pharmacy, disease management programs, and retail clinics. The Company serves employers, insurance companies, unions, government employee groups, managed care organizations and other sponsors of health benefit plans, and individuals under the CVS Caremark Pharmacy Services, Caremark, CVS Caremark, CarePlus CVS/pharmacy, RxAmerica, Accordant, SilverScript, and Novologix names. CVS Health Corporation, formerly known as CVS Caremark Corporation, is headquartered in Woonsocket, Rhode Island.

Analyst Views

CVS Health Corporation (NYSE:CVS) received a Buy rating from 4 analysts. 1 analysts gave its stock an Outperform rating. 0 analysts say it’s a Hold while 0 analysts provided their expert opinion as Sell.

CVS Health Corporation (NYSE:CVS) touched its 1-Year High price of $84.00 on 09/19/17 and its 1-Year Low price of $66.45 on 11/06/17.

EPS & Financials

CVS Health Corporation (NYSE:CVS) reported its EPS in the last quarter as $1.92/Share beating the analyst estimate of $1.89/Share by a difference of $0.03. This showed a surprise of 1.6% in the last quarter earnings.

For the current quarter, 22 analysts are projecting a mean EPS of $1.4/share. According to their observations and findings, the stock could provide a high EPS of $1.54/share and a low EPS of $1.13/share.

Analysts believe that the company has the potential to earn average revenue of $45.81 Billion for the current quarter. According to their predictions high & low revenue estimates are 46.63 Billion and 45.03 Billion respectively.

Technical Analysis

By taking a look at the stock’s current statistics it can gauged that the stock candle is BULLISH with HIGH volatility. CVS Health Corporation (NYSE:CVS) has a 20-Day average volume of 9.54 Million. According to today’s trading volume CVS Health Corporation is BELOW its 20-Day Avg. volume with the stock showing BELOW Abnormal volume in the past 150 days.

Moving average convergence divergence (MACD) shows that the stock is on a PRICE RELATIVITY trend. The trend for the past 10-days shows that the company was in BEARISH territory while an analysis of the last 40-Day trend shows a BULLISH signal. The 100-Day trend also shows a BULLISH trend as well.

The company currently has an insider ownership of 0.1 Percent and Institutional ownership of 83.8 Percent. The return on assets stands at 5.7%, Return on Equity currently is 15.1% and the Return on Investment value is 9.9%.

CVS Health Corporation (NYSE:CVS) gross margin percentage stands at 15.8% while its operating margin for the past trailing twelve month is 5.3 percent and its overall profit margin (ttm) is 2.9 Percent. The stock is currently moving below its 20-Day Simple Moving Average of -9.6% with a 50-Day Simple Moving Average of -7.36 percent. As of today, the company has a SMA200 (200-day simple moving average) of -9.07 Percent. The Stock has YTD (year to date) performance of -3.74 percent.

The TTM operating margin for the company stands at 5.3%. The return on invested capital is at 9.9%, which is good, compared to its peers. The Free Cash Flow or FCF margin is 11.65.

The company’s stock is currently moving with a -ve distance from the 200 day SMA of approximately -9.07%, and has a solid year to date (YTD) performance of -3.74% which means that the stock is constantly adding to its value from the previous fiscal year end price.