CVS Health Corporation (CVS), headquartered in Woonsocket, Rhode Island, provides health solutions, including health care and retail pharmacy services. With a market cap of $94 billion, the company offers prescription medications, beauty, personal care, cosmetics, and health care products, as well as pharmacy benefit management (PBM), disease management, and administrative services. 

Companies worth $10 billion or more are generally described as “large-cap stocks.” CVS effortlessly fits that bill, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the healthcare plans industry. CVS’ ability to offer a comprehensive suite of services creates a seamless healthcare experience for consumers, allowing it to leverage cross-selling opportunities and synergies, leading to increased access to care, improved health outcomes, and reduced healthcare costs. 

Despite its notable strength, CVS slipped 1.6% from its 52-week high of $74.53 achieved on Sep. 2. Over the past three months, CVS stock has gained 15.3%, outperforming the Dow Jones Industrials Average’s ($DOWI) 6.5% gains during the same time frame. 

In the longer term, shares of CVS rose 63.3% on a YTD basis and climbed 27.8% over the past 52 weeks, outperforming DOWI’s YTD gains of 6.4% and 10.6% returns over the last year.

To confirm the bullish trend, CVS has been trading above its 200-day moving average since mid-February, and has experienced minor fluctuations since. The stock is trading above its 50-day moving average since early August. 

CVS Health's strong performance stems from its growth in Medicare business, driven by favorable supplemental benefit offerings and Part D in individual Medicare Advantage plans. The company is also working to restore Aetna to target margins through organizational realignment and technology enhancements. With investments in enterprise data platforms, cloud capabilities, AI, and robotics, CVS is building a more tech-driven consumer health experience, positioning itself for long-term growth and improved profitability.

On Jul. 31, CVS shares closed down marginally after reporting its Q2 results. Its adjusted EPS of $1.81 surpassed Wall Street expectations of $1.47. The company’s revenue was $98.9 billion, beating Wall Street forecasts of $93.7 billion. CVS expects full-year adjusted EPS in the range of $6.30 to $6.40.

In the competitive arena of healthcare plans, UnitedHealth Group Incorporated (UNH) has lagged behind the stock, with a 39.1% downtick on a YTD basis and a 48.6% loss over the past 52 weeks.

Wall Street analysts are bullish on CVS’ prospects. The stock has a consensus “Strong Buy” rating from the 24 analysts covering it, and the mean price target of $81.55 suggests a potential upside of 11.2% from current price levels.