CVS Health (CVS) is a healthcare firm headquartered in Rhode Island. It includes CVS Pharmacy, CVS Caremark, and Aetna, among many other brands.
The stock price increased by 26% in the last year, with a market capitalization of $126.2 billion. The company reported solid Q4 results, with strong free cash flow generation and sustained sales growth.
One of the notable fourth-quarter highlights was a 10% increase in revenue to $76.6 billion year-over-year. In addition, adjusted EPS of $1.98 increased 52% year-over-year and came in above the Street’s expectation of $1.61.
The healthcare company will release its Q122 earnings tomorrow, May 4. Let’s take a look at the company’s prospects for the upcoming quarter.
Q1 Expectations
According to analysts, CVS Health is projected to report adjusted earnings of $2.16 per share in the first quarter. This represents a year-over-year increase of 6%.
Meanwhile, analysts forecast CVS Health to report $75.1 billion in revenue for the first quarter.
For 2022, the company expects adjusted EPS to come in the range of $8.10 to $8.30 per share.
Website Traffic Reflects a Downward Trend
We have used TipRanks’ Website Traffic Tool to dive into CVS Health’s monthly user counts ahead of the Q1 print to gain a better idea of the company’s present state.
We discovered through the tool that overall projected visits to the CVS Health website decreased in Q1. In particular, the total projected worldwide visits to cvshealth.com decreased by 49.1% from the fourth quarter.
Wall Street’s Take
Analyst Ivan Feinseth of Tigress Financial is optimistic about the fundamentals of the company. The analyst believes that CVS Health’s “primary care focus strategy combined with an extensive retail store and service network will continue to drive long-term shareholder value creation.”
Feinseth is also upbeat about the company’s ability to generate substantial cash flow.
He writes, “CVS continues to use its strong cash flow to optimize its balance sheet and fund investments in new growth initiatives, along with optimizing its balance sheet and returning cash to shareholders through dividend increases and share repurchases.”
As a result, Feinseth maintained a Buy rating on the stock and increased the price target to $125 from $122 per share. This implies 30% upside potential from current levels.
On TipRanks, CVS Health stock commands a Strong Buy consensus rating based on 10 Buys and three Holds. As for price targets, the average CVS price target of $119.42 implies almost 24% upside potential from current levels.
Bottom Line
CVS is a dependable organization that has made significant strides to provide medical care via digital and virtual channels. Also, the company’s robust free cash flows and constant and stable profitability might make it a good bet.
Learn more about the Website Traffic tool in this video by Youtube sensation Tom Nash.
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