Bear of the Day: CVS Health (CVS)

CVS Health CVS is a pharmacy innovation company. Its offerings include pharmacy benefit management services, mail order, retail and specialty pharmacy, disease management programs, and retail clinics.Analysts have taken a bearish stance on the company’s outlook, landing the stock into a Zacks Rank #5 (Strong Sell).Image Source: Zacks Investment ResearchIn addition, the company is in the Zacks Retail – Pharmacies and Drug Stores industry, which is currently ranked in the bottom 8% of all Zacks industries.Let’s take a closer look at the company.CVS Posts Weak Results CVS shares have struggled to establish any strength in 2024, losing roughly 26% in value compared to an impressive 25% gain from the S&P 500. Quarterly results haven’t delivered sustained positivity for shares, with its recent release causing an initial bullish spike before giving up the post-earnings gains. Image Source: Zacks Investment ResearchConcerning the latest quarterly print, the company beat our consensus EPS and sales expectations by 2% and 2.8%, respectively. Still, a notable profitability crunch has been a driver behind the poor share performance, with EPS declining 50% throughout the period.Elevated medical costs have been behind the crunch, with the company expecting its current fiscal year results to be negatively affected by the development. The company’s guidance has been consistently lowered following quarterly results in 2024, but a newly-appointed CEO remains vigilant on slashing costs and returning the company to growth.Bottom LineGuidance cuts stemming from weak quarterly results paint a challenging picture for the company’s shares in the near term.CVS Health CVS is a Zacks Rank #5 (Strong Sell), indicating that analysts have taken a bearish stance on the company’s earnings outlook.For those seeking strong stocks, a great idea would be to focus on stocks carrying a Zacks Rank #1 (Strong Buy) or a Zacks Rank #2 (Buy) – these stocks sport a notably stronger earnings outlook paired with the potential to deliver explosive gains in the near term.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CVS Health Corporation (CVS): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks