Group 1 - CVS Health was one of the worst performing stocks in the S&P 500 in 2024, with a full-year return showing a decline of approximately 40 percent [1]

Group 1: Company Performance - CVS Health closed at $51.96, reflecting a -0.35% change from the previous day, underperforming the S&P 500's daily loss of 0.21% [1] - Over the past month, CVS Health shares have appreciated by 15.15%, outperforming the Retail-Wholesale sector's loss of 2.84% and the S&P 500's loss of 1.56% [1] Group 2: Upcoming Financial Results - CVS Health is set to announce its earnings on February 12, 2025, with an anticipated EPS of $0.94, representing a 55.66% decline compared to the same quarter last year [2] - The consensus estimate forecasts revenue of $97.27 billion, indicating a 3.69% growth compared to the corresponding quarter of the prior year [2] Group 3: Analyst Forecasts and Rankings - Recent revisions to analyst forecasts for CVS Health are important as they reflect short-term business trends, with positive changes indicating a favorable outlook on the company's health and profitability [3] - The Zacks Rank system, which assesses estimated changes, currently ranks CVS Health as 5 (Strong Sell), with the Zacks Consensus EPS estimate moving 2.08% lower in the past month [5] Group 4: Valuation Metrics - CVS Health has a Forward P/E ratio of 8.56, which is a premium compared to its industry's Forward P/E of 7.89 [6] - The company also has a PEG ratio of 0.78, aligning with the average PEG ratio of the Retail - Pharmacies and Drug Stores industry [7] Group 5: Industry Context - The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector, holding a Zacks Industry Rank of 235, placing it in the bottom 7% of over 250 industries [8]

CVS Health - CVS Health is a dominant player in the US healthcare industry, known for its CVS Pharmacy locations, CVS Caremark, and Aetna health plans [2] - The company faced challenges in 2024, including lower demand for COVID-related products and rising costs tied to its Medicare Advantage plans [2] - A recent government proposal to increase MA payments in 2026 has renewed optimism, helping shares climb nearly 15% year-to-date [17] - CVS offers a 5.16% dividend yield and has a P/E ratio of 13.08, making it attractive for income-focused investors [14] - Analysts maintain a Moderate Buy rating and project nearly 33% upside to the consensus price target [10] Ford Motor Co - Ford Motor Co has faced challenges, with its stock falling nearly 16% over the past year due to rising recall and warranty costs and continued losses in its EV segment [3] - The company has a dividend yield of 6.13% and an annual dividend of $0.60, with an annualized 3-year dividend growth of 81.71% [7] - Management projects better EV margins by 2025 through cost improvements [7] - Valuation metrics highlight Ford's appeal, with a P/E of 11.07 and a forward P/E of 5.74 [18] - Analysts assign a Reduce rating but the consensus price target of $11.83 implies an impressive upside from current levels [15] Devon Energy - Devon Energy has surged over 12% this year, breaking out of a long-term downtrend and clearing a critical resistance level [5][13] - The company offers a dividend yield of 2.36% with an annual dividend of $0.88 and an annualized 3-year dividend growth of 25.99% [16] - Devon's forward yield stands at 4.13% and could rise significantly if oil prices continue to climb [13] - As one of the US's largest independent oil and gas producers, Devon operates in highly productive regions like the Delaware Basin [16] Market Overview - The energy sector has started 2025 strong, with the Energy Select Sector SPDR Fund ETF up 5.36% year-to-date [5] - The S&P 500 and other major indices are down year-to-date, led by sharp declines in tech heavyweights like NVIDIA, which has fallen 13% from its 52-week high [8] - Market sentiment has been dampened by a hot December jobs report, reigniting fears of prolonged higher interest rates [8]

Stock Performance - Shares of UnitedHealth Group Incorporated (UNH), Humana Inc (HUM), and CVS Health Corporation (CVS) grew by 3 9%, 6 8%, and 7 3%, respectively, following the Biden administration's proposal to increase payments to Medicare Advantage (MA) plans [1] - The proposed payment increase significantly exceeded market expectations, signaling a potential windfall for these companies [1] Earnings Growth Expectations - Humana's next-year EPS growth rate is expected at 3 3% with a Zacks Rank 2 (Buy) [2] - UnitedHealth's next-year EPS growth rate is expected at 8% with a Zacks Rank 3 (Hold) [2] - CVS Health's next-year EPS growth rate is expected at 16 7% but has a Zacks Rank 5 (Strong Sell) [2] Medicare Advantage Market Dynamics - Government payments to MA plans are projected to rise by an average of 4 33%, an increase of more than $21 billion from 2025 to 2026 [4] - Excluding changes in patient risk scores, the effective growth rate is expected to be 2 23% [4] - UnitedHealth, Humana, and CVS Health collectively account for nearly 60% of the MA market [6] Industry Challenges - Physicians treating Medicare patients face their fifth consecutive year of payment cuts, leading to frustration over perceived preferential treatment for insurers [5] - The American Medical Association (AMA) is urging Congress to align physician payment rates with the rising cost of care [5] - MA remains under scrutiny from politicians on both sides for care denials and alleged overpayments, adding an element of uncertainty [7] Financial Impact - The finalized 2025 payment rates, announced in April, amounted to a slight reduction when adjusted for risk scores [6] - The newly proposed rates, coupled with membership growth, are poised to bolster the financial performance of MA plan sellers [6] - The Fed is likely to spend $9 2 trillion over the next 10 years on MA payments to plans [7] Conclusion - With the proposed payment increase and growing membership, Medicare Advantage sellers like UnitedHealth, Humana, and CVS Health are positioned for near-term growth [3] - Ongoing scrutiny and pushback from physicians could influence the sector's longer-term trajectory [3]

Group 1 - CVS Health will hold a conference call on February 12th, 2025, at 8:00 a.m. ET to discuss its fourth quarter and full year 2024 financial results [1] - An audio webcast of the conference call will be available on the CVS Health Investor Relations website and archived for one year [1] Group 2 - CVS Health is a leading health solutions company that enhances access to care for millions across the United States [2] - The company employs over 300,000 colleagues, including more than 40,000 healthcare professionals [2] - CVS Health aims to create seamless connections within the healthcare system, simplifying the experience for individuals [2]

WOONSOCKET, R.I., Jan. 10, 2025 /PRNewswire/ -- CVS Health® (NYSE: CVS) is actively supporting its customers, members, provider partners and colleagues as they respond to the California wildfires. The company prioritizes the health and safety of impacted communities and is dedicated to providing access to the products and services they need. CVS Pharmacy stores are reopening as it is safe to do so. If a store has not yet reopened, the pharmacy's phone lines will be rerouted to a nearby open CVS Pharmacy to ...

Most of us are likely familiar with CVS Health Corporation's (NYSE: CVS ) (NEOE: CVS:CA ) recent headwinds, so I don't plan to harp too much on this during the article.Contributing analyst to the iREIT+Hoya Capital investment group. The Dividend Collectuh is not a registered investment professional nor financial advisor and these articles should not be taken as financial advice. This is for educational purposes only and I encourage everyone to do their own due diligence. I'm a Navy veteran who enjoys divide ...

CVS Health (CVS 0.50%) is a stock that's been struggling badly for multiple years and is coming off a brutal performance in 2024, when its shares nose-dived by 43%.Investors may have gotten lured into its low, attractive valuation or bought it for its high-yielding dividend, only to end up disappointed later on. The healthcare company, despite its broad diversification, hasn't provided investors with much safety at all; if you had held the stock for the past three years, your investment would have lost more ...

AHMEDABAD, India, Jan. 7, 2025 /PRNewswire/ -- Zydus Lifesciences Ltd. (including its subsidiaries/affiliates, hereafter referred to as 'Zydus'), a global innovation driven healthcare company announced that it has entered into an agreement with CVS Caremark®, a CVS Health® (NYSE: CVS) company to add Zituvio™, Zituvimet™ and Zituvimet™ XR (Sitagliptin | Sitagliptin and Metformin Hydrochloride) tablets to its template formulary. CVS Caremark will add Zydus' Zituvio™ and combination products to its template fo ...

CVS Health has been named as a Top 25 dividend stock, according the most recent Dividend Channel ''DividendRank'' report. The report noted that among the coverage universe, CVS shares displayed both attractive valuation metrics and strong profitability metrics. For example, the recent CVS share price of $45.77 represents a price-to-book ratio of 0.8 and an annual dividend yield of 5.81% — by comparison, the average company in Dividend Channel's coverage universe yields 4.4% and trades at a price-to-book rat ...