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CVS Health Corporation (CVS) Stock Analysis

SellVALUE-TRAP 1/5Moderate Confidence

Healthcare · Healthcare Plans

Sell if holding. Engine safety override at $94.18: Quality below floor (3.3 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.7/10. Specifically: Below-average business quality.

CVS Health is a diversified healthcare company operating Health Care Benefits (Aetna, ~37 million members), Health Services (CVS Caremark PBM, Oak Street Health primary care), and Pharmacy & Consumer Wellness (~9,000 retail locations). Revenue is driven by health insurance... Read more

$94.18+2.4% A.UpsideScore 5.7/10#4 of 11 Healthcare Plans
QualityF-score6 / 9FCF yield4.25%
IncomeYield2.77%(5y avg 3.22%)Payout116.67%at-risk
Stop $88.86Target $96.46(resistance)A.R:R -0.2:1
Analyst target$101.58+7.9%26 analysts
$96.46our TP
$94.18price
$101.58mean
$79
$140

Sell if holding. Engine safety override at $94.18: Quality below floor (3.3 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.7/10. Specifically: Below-average business quality. Chart setup: No recognized chart pattern (not a breakout, bounce, continuation, recovery, falling knife, or range) — technicals mixed. Score 5.7/10, moderate confidence.

Passes 7/8 gates (positive momentum, clean insider activity, no SEC red flags, news boost analyst 0.60, earnings proximity 72d clear, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. Suitability: moderate.

Recent Developments — CVS Health Corporation

Generated 2026-05-20T20:21:21Z.

Thesis

Rewards
Recent Analyst detected in news
Risks
Target reached (-2.9% upside)
Quality below floor (3.3 < 4.0)

Key Metrics

P/E (TTM)42.1
P/E (Fwd)11.5
Mkt Cap$122.5B
EV/EBITDA12.3
Profit Mgn0.7%
ROE3.8%
Rev Growth6.1%
Beta0.59
Dividend2.77%
Rating analysts33

Quality Signals

Piotroski F6/9

Options Flow

P/C0.95neutral
IV42%normal

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer

Rating Breakdown

1 floor-breaker

Quality below the gate floor. Component breakdown shows what dragged the score down.static

Gross Margin
0.0
Net Margin
0.4
Roe
1.3
Operating Margin
1.6
Roa
1.8
Current Ratio
3.5
Moat
4.2
Piotroski F
6.7
Fcf Quality
10.0
Excellent cash conversion: 177% FCF/NINo competitive moat
GatesA.R:R -0.2=NEGATIVEMomentum 6.1>=5.5Insider activity: OKNo SEC red flagsNEWS BOOST ANALYST 0.60EARNINGS PROXIMITY 72d clearSEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARSuitability: Moderate
RSI
71 · Overbought
20D MA 50D MA 200D MAGOLDEN CROSSSupport $75.65Resistance $98.43

Price Targets

$89
$96
A.Upside+2.4%
A.R:R-0.2:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeSteady

Risk Alerts

! Target reached (-2.9% upside)
! Quality below floor (3.3 < 4.0)
! Negative risk/reward — downside exceeds upside

Earnings

B
B
B
B
4/4 beats
Next Earnings2026-07-30 (72d)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is CVS stock a buy right now?

Sell if holding. Engine safety override at $94.18: Quality below floor (3.3 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.7/10. Specifically: Below-average business quality. Chart setup: No recognized chart pattern (not a breakout, bounce, continuation, recovery, falling knife, or range) — technicals mixed. Prior stop was $88.86. Score 5.7/10, moderate confidence.

What is the CVS stock price target?

Take-profit target: $96.46 (+2.4% upside). Prior stop was $88.86. Stop-loss: $88.86.

What are the risks of investing in CVS?

Target reached (-2.9% upside); Quality below floor (3.3 < 4.0).

Is CVS overvalued or undervalued?

CVS Health Corporation trades at a P/E of 42.1 (forward 11.5). TrendMatrix value score: 6.9/10. Verdict: Sell.

What do analysts say about CVS?

33 analysts cover CVS with a consensus score of 4.0/5. Average price target: $102.

What does CVS Health Corporation do?CVS Health is a diversified healthcare company operating Health Care Benefits (Aetna, ~37 million members), Health...

CVS Health is a diversified healthcare company operating Health Care Benefits (Aetna, ~37 million members), Health Services (CVS Caremark PBM, Oak Street Health primary care), and Pharmacy & Consumer Wellness (~9,000 retail locations). Revenue is driven by health insurance premiums, PBM fees, and pharmacy dispensing across integrated care delivery. Federal government revenues, primarily CMS Medicare/Medicaid contracts, accounted for approximately 20% of consolidated 2025 revenues.

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