CVS Health Q2 Earnings: CEO's Swinging Axe May Have Ended The Bear Run

(16min)

Summary

  • CVS Health Corporation reported Q2 earnings earlier today, with revenues up nearly 2.6% year-on-year, but profits down year-on-year.
  • CVS' health insurance business underperformed, leading to downgraded guidance for 2024 — the President of CVS Aetna division has paid the price, and been removed from his post.
  • CVS' CEO Karen Lynch — a healthcare insurance veteran — will take back control of Aetna and its day-to-day running for now.
  • CVS plans to achieve a 4-5% profit margin in its Medicare Advantage business, targeting 10% annual EPS growth and expects the stock price to increase towards $100.
  • My feeling is decisive action needed to be taken to address the failing health insurance unit, and now it has been. This in turn could trigger a period of share price buoyancy. I am upgrading my rating to “Buy”.

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Investment Overview

CVS Health Corporation (NYSE:CVS), the Woonsocket, Rhode Island headquartered "health solutions" giant, reported its Q2 earnings earlier today. In trading so far, CVS' share price has barely budged from a price of $58 per share, which

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This article was written by

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Edmund Ingham is a biotech consultant. He has been covering biotech, healthcare, and pharma for over 5 years, and has put together detailed reports of over 1,000 companies. He leads the investing group Haggerston BioHealth.

The group is for both novice and experienced biotech investors. It provides catalysts to look out for and buy and sell ratings. It also provides product sales and forecasts for all the Big Pharmas, forecasting, integrated financial statements, discounted cash flow analysis and market by market analysis. Learn more.

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