CVS Health - AI Stock Analysis

Analysis generated January 3, 2026

CVS Health Corporation is an American healthcare company that owns CVS Pharmacy, a retail pharmacy chain; CVS Caremark, a pharmacy benefits manager; and Aetna, a health insurance provider. The company's diversified model puts it in a strong position within the healthcare landscape, helping it maintain a steady revenue stream from different segments of the healthcare market. CVS Health is headquartered in Woonsocket, Rhode Island, and has a significant presence across the United States through its extensive network of retail and healthcare services.

Fundamental Analysis

For the last quarter, CVS Health reported a revenue of $103 billion, which showcases an impressive growth of 4.00% compared to the previous quarter. Year over year, revenue has increased by 7.80%, indicating solid financial health and growth momentum.

However, the net income for the last quarter was $3.98 billion. This marks a striking decrease of 489.32% compared to the quarter before. Year over year, this presents a concerning decline of 4,668.97%, signaling potential challenges in profitability that need to be closely monitored.

EBITDA for the last quarter was recorded at $1.56 billion, representing a decrease of 143.67% compared to the previous quarter. Year over year, EBITDA declined by 177.50%. This steep decline raises red flags about the company's operational efficiency and earnings before interest, taxes, depreciation, and amortization.

The company's current Price-to-Earnings (P/E) ratio stands at 208.84, which appears high and might indicate overvaluation. A high P/E ratio coupled with declining net income could suggest bearish sentiment in the market.

Technical Analysis

The current stock price of CVS Health is $80.13, which is an increase of 6.84% compared to a month ago, indicating a positive short-term trend. Year over year, the stock price has surged by 82.49%, reflecting a robust long-term bullish trend.

The current Simple Moving Average (SMA) over the last 10 days (SMA10) is 79.68, slightly higher than the previous SMA10 of 79.58, suggesting an upward momentum in the stock's price movement.

However, the Relative Strength Index (RSI) is at a high 96.9, indicating that the stock is potentially overbought, which could lead to a bearish condition in the near term.

Alternative Data Analysis

From an alternative data perspective, CVS Health has 14,706 open positions, which is down by 25% in the last couple of months. This might indicate efforts to cut costs or improve margins, although it is not a favorable sign for a growing company. Additionally, only 41% of employees have a positive business outlook, which is concerning for the company's overall morale and future growth potential.

On the customer acquisition front, CVS Health’s website has seen an estimated 3.9 million visitors, up by 6% in recent months, indicating positive customer interest. Furthermore, the company's mobile apps have witnessed an estimated 25% increase in daily downloads, totaling 17,000 users daily, suggesting an increased customer engagement through digital channels.

In terms of customer engagement on social media, CVS Health has 21,000 followers on Instagram with a 4% increase and 65,000 followers on Twitter, which saw a 1% decline, indicating mixed interest from shareholders and customers.

According to AltIndex's AI score, which assesses fundamental, technical, and alternative data to predict stock performance, CVS Health's score is 49, suggesting a 'Hold' signal.

Conclusion and Recommendation

Despite showing strong revenue growth, the significant decreases in net income and EBITDA, coupled with a high P/E ratio, paint a mixed picture for CVS Health. The positive short-term and long-term trends in stock price, as well as increasing customer engagement, are encouraging. However, the high RSI and mixed alternative data concerning employee sentiment and job postings present potential red flags.

Based on this comprehensive analysis, it is recommended to 'Hold' the stock at this time, given the mixed signals from various metrics and market conditions. Investors should monitor upcoming quarterly results and any strategic changes closely to reassess the investment potential.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.