CVS Health ends in red after six-session rally

CVS Health (NYSE:CVS [https://seekingalpha.com/symbol/CVS]) snapped six consecutive sessions of gains on Wednesday as the stock ended 0.21% lower at $70.82.

Since August 12, the stock has closed in the green every day until August 19, during which CVS gained over 8%. On a year-to-date basis, it has increased by nearly 58% compared to a 9% rise in the broader markets.

On Monday, UBS [https://seekingalpha.com/news/4486618-cvs-upgraded-ubs-valuation-growth-prospects] upgraded the pharmaceutical company to Buy from Hold, saying that the company has a compelling valuation and good growth prospects.

Analyst Kevin Caliendo said that CVS has executed well over the past two quarters and there are "early signs that the Healthcare Benefits (HCB) segment fixes are on track."

Overall, Wall Street analysts have a Buy rating for the stock with 22 analysts suggesting a Buy and above rating and 5 recommending Hold.

As per Seeking Alpha’s quant rating [https://seekingalpha.com/symbol/CVS/ratings/quant-ratings] and analysts, it is recommended to Hold CVS. It has a score of 3.48 out of 5. The company has been graded A+ for profitability but holds a D- rating for growth.

However, Seeking Alpha analyst YR Research [https://seekingalpha.com/article/4814257-cvs-health-health-insurers-get-buffett-stamp-of-approval-rating-upgrade] recently upgraded the stock to Buy from Hold, expressing optimism over the sector’s resilience despite recent challenges.

“CVS has emerged as a top performer in 2025, with strong revenue growth and raised guidance, outpacing struggling peers like UnitedHealth,” the analyst said.

Another analyst, Juxtaposed Ideas [https://seekingalpha.com/article/4814525-cvs-health-outlier-in-healthcare-implosion-further-margin-recovery-ahead], echoed similar sentiments towards CVS, arguing that it had emerged as an outlier, delivering stronger YoY margins even amid rising medical costs, despite the downturn in the healthcare insurance sector.

“While there remains a slight distance to CVS' pre-pandemic profit margins, it is apparent that the company has successfully weathered the ongoing headwinds observed in the wider healthcare sector,” it added.

MORE ON CVS

* CVS Health: Outlier In Healthcare Implosion - Further Margin Recovery Ahead [https://seekingalpha.com/article/4814525-cvs-health-outlier-in-healthcare-implosion-further-margin-recovery-ahead]
* CVS Health: Health Insurers Get Buffett's Stamp Of Approval (Rating Upgrade) [https://seekingalpha.com/article/4814257-cvs-health-health-insurers-get-buffett-stamp-of-approval-rating-upgrade]
* CVS Health Corporation 2025 Q2 - Results - Earnings Call Presentation [https://seekingalpha.com/article/4809738-cvs-health-corporation-2025-q2-results-earnings-call-presentation]
* CVS unit ordered to pay $290M for overcharging Medicare drugs [https://seekingalpha.com/news/4487465-cvs-ordered-pay-290m-over-medicare-fraud]
* CVS upgraded at UBS on valuation, growth prospects [https://seekingalpha.com/news/4486618-cvs-upgraded-ubs-valuation-growth-prospects]