Core Insights - CVS Health announced that its approximately 9,000 community pharmacies are now accepting TrumpRx discount cards, which provide savings on certain medications for eligible individuals as determined by drug manufacturers [1] Company Summary - CVS Health is expanding its services by integrating TrumpRx discount cards into its community pharmacies, enhancing access to medication savings for eligible patients [1]

Core Viewpoint - CVS Health will replace Amgen and Eli Lilly's bone disease treatments with lower-cost alternatives in its preferred drug lists starting April 1 [1] Group 1 - CVS Health is making changes to its preferred drug lists to include more cost-effective options [1] - The decision reflects a broader trend in the healthcare industry towards reducing drug costs for consumers [1]

Shares of CVS Health (NYSE: CVS) have been declining recently as a potentially lower-than-expected increase in Medicare Advantage rates has investors worried about companies with exposure to health insurance. For CVS, health insurance is indeed a large part of its business as it owns Aetna, which serves millions of people throughout the country. Is CVS Health stock worth buying right now, on weakness, despite some concerning developments in the healthcare sector, or is it too risky to add it to your portfo ...

Core Viewpoint - CVS Health is enhancing access to lower-cost biosimilar medications, specifically osteoporosis treatments, by introducing new options in its formulary, which will be effective from April 1, 2026, providing significant cost savings compared to original brands [1]. Group 1: Introduction of Biosimilars - CVS Caremark will add osteoporosis biosimilars Ospomyv and Stoboclo, along with generic teriparatide options Bonsity and Tymlos, to its major national commercial template formularies [1]. - These biosimilars will replace Prolia and Forteo, offering customers more affordable alternatives with strong clinical and supply confidence [1]. Group 2: Cost Savings and Strategy - The preferred biosimilar approach is over 50% lower in costs per prescription compared to the original brand [1]. - CVS Caremark's biosimilar formulary strategy has already helped customers realize $1.5 billion in gross savings [5]. - The company has successfully transitioned 96% of its client members using Humira to a biosimilar, demonstrating its commitment to driving competition and cost savings [5]. Group 3: Specialty Drug Management - CVS Specialty proactively informs prescribers and patients about formulary changes, ensuring a smooth transition to covered alternatives [6]. - Advanced technology capabilities streamline the prescription process for doctors, allowing for quick approvals and enhancing patient communication [7]. Group 4: Importance of Biosimilars - Biosimilars are crucial for treating complex chronic conditions and are often injectable medications that require careful handling [8]. - The introduction of Ospomyv and Stoboclo is significant for treating osteoporosis, which is vital for preventing fractures and maintaining independence in older adults [9][10]. Group 5: Company Overview - CVS Health operates approximately 9,000 retail pharmacy locations and serves around 87 million plan members through its pharmacy benefits manager [11]. - The company aims to connect consumers to better health through personalized, technology-driven services, ultimately lowering overall healthcare costs [11].

Core Viewpoint - CVS Health is set to report its fourth-quarter 2025 results on February 10, with expectations of continued revenue growth despite a projected decline in earnings per share [1][2]. Group 1: Earnings and Revenue Estimates - The Zacks Consensus Estimate for CVS's fourth-quarter revenues is $103.1 billion, indicating a 5.5% growth from the previous year [2]. - The earnings estimate for the fourth quarter is 99 cents per share, reflecting a 16.8% decrease compared to the same period last year [2]. - Earnings estimates have increased by 3.1% over the past 60 days, indicating positive sentiment leading up to the earnings announcement [3]. Group 2: Factors Influencing Performance - The Health Care Benefits segment is expected to face challenges due to elevated medical costs and pressures from the Medicaid business, which may impact revenue [4]. - Positive contributions to revenue may come from the government business, particularly due to the Inflation Reduction Act's effects on the Medicare Part D program [5]. - Aetna's integration of pharmacy prescriptions and medical procedures is anticipated to enhance operational efficiency and revenue in the Health Care Benefits segment [6]. Group 3: Segment Performance Insights - The Pharmacy & Consumer Wellness segment is likely to have driven revenue growth, supported by the Rite Aid acquisition and increased prescription volume [9]. - The Health Services segment is projected to see a 7.2% year-over-year revenue increase, despite some short-term headwinds affecting client contracts [12]. - The Pharmacy & Consumer Wellness segment is expected to grow by 9.8% in the fourth quarter, benefiting from a favorable pharmacy drug mix and higher prescription volumes [15]. Group 4: Strategic Developments - CVS has completed a review of its Oak Street clinic operations, leading to the closure of underperforming locations, which is expected to improve revenue [11]. - The company is also planning to reduce the number of new Oak Street clinics to focus on sustainable margins [11]. - CVS is actively offering updated COVID-19 vaccines across its locations, which is expected to positively impact revenues in the fourth quarter [14].

Core Insights - The proposed regulation by the U.S. Department of Labor aims for "radical transparency" from Pharmacy Benefit Managers (PBMs), which could significantly impact the profitability of major health companies like UnitedHealth, CVS, and Humana [2][3][5] Group 1: Regulatory Changes - The new DOL regulation requires PBMs to disclose their compensation to self-insured group health plans, affecting approximately 90 million Americans [3] - The regulation targets hidden fees and distorted incentives within the healthcare system, emphasizing that transparency will benefit American workers and their families [3] - The timing of the proposed rule coincides with increased scrutiny over how PBMs manage rebates, particularly allegations of using "shell companies" to obscure fees [3][4] Group 2: Financial Practices of PBMs - Reports indicate that PBMs often claim to pass through 100% of rebates to customers but may instead funnel money through subsidiaries, including those in "ghost offices" in Ireland and Switzerland [4] - The DOL regulation is designed to close loopholes by ensuring that compensation through Group Purchasing Organizations (GPOs) or rebate aggregators is disclosed to plan fiduciaries [5] - Key financial practices under scrutiny include spread pricing, rebates, and clawbacks, which are critical to understanding the financial dynamics between PBMs, health plans, and pharmacies [6]

I aim to invest in companies with perfect qualitative attributes, buy them at an attractive price based on fundamentals, and hold them forever. I hope to publish articles covering such companies approximately 3 times per week, with extensive quarterly follow-ups and constant updates.I manage a concentrated portfolio targeted at avoiding losers and maximizing exposure to big winners. This means that often I'll rate great companies at a 'Hold' because their growth opportunity is below my threshold, or their d ...

I aim to invest in companies with perfect qualitative attributes, buy them at an attractive price based on fundamentals, and hold them forever. I hope to publish articles covering such companies approximately 3 times per week, with extensive quarterly follow-ups and constant updates.I manage a concentrated portfolio targeted at avoiding losers and maximizing exposure to big winners. This means that often I'll rate great companies at a 'Hold' because their growth opportunity is below my threshold, or their d ...

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for CVS Health despite higher revenues, with a focus on how actual results will compare to estimates [1] Earnings Expectations - CVS Health is expected to report quarterly earnings of $0.99 per share, reflecting a year-over-year decrease of 16.8% [3] - Revenue projections stand at $103.13 billion, indicating a 5.5% increase from the previous year [3] Estimate Revisions - The consensus EPS estimate has been revised down by 0.1% over the last 30 days, indicating a reassessment by analysts [4] - The Most Accurate Estimate for CVS Health is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +0.38% [12] Earnings Surprise Prediction - A positive Earnings ESP is a strong indicator of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [10] - CVS Health currently holds a Zacks Rank of 3, suggesting a likelihood of beating the consensus EPS estimate [12] Historical Performance - CVS Health has consistently beaten consensus EPS estimates, achieving this in the last four quarters [14] - In the last reported quarter, CVS Health exceeded expectations by delivering earnings of $1.60 per share against an expected $1.36, resulting in a surprise of +17.65% [13] Market Reaction - The stock price may increase if earnings exceed expectations, while a miss could lead to a decline [2] - Other factors beyond earnings results may also influence stock movement, highlighting the complexity of market reactions [15]

Core Viewpoint - CVS Health Corporation is considered one of the best cheap stocks to buy for 2026, despite a recent price target cut by BofA Securities from $100 to $95 while maintaining a Buy rating due to disappointing proposals from CMS [1]. Group 1: CMS Proposal Impact - The Centers for Medicare & Medicaid Services (CMS) proposed a net all-in rate of 2.54% for the calendar year 2027, which is below market expectations of 4-6% [2]. - The new CMS-HCC model for calculating risk scores is expected to reduce payments by approximately 1.53% in 2027, aiming to eliminate certain billing practices by excluding diagnosis information from unlinked Chart Review Records in risk score calculations starting in 2027 [2]. Group 2: Analyst Perspectives - Bernstein raised its price target for CVS to $87 while maintaining a Market Perform rating, highlighting growth opportunities through Aetna but acknowledging ongoing challenges in the pharmacy benefit manager sector [3]. Group 3: Dividend Announcement - CVS's Board of Directors approved a quarterly dividend of $0.665 per share on common stock, with payment scheduled for February 2 to shareholders on record as of January 22 [4]. Group 4: Company Overview - CVS Health operates as a diversified healthcare company, providing retail pharmacies, pharmacy benefit management services, and health insurance offerings under Aetna, including prescription drug distribution, walk-in medical clinics, and insurance plans [5].