10 Best Stocks That Will Always Grow

8. CVS Health Corporation (NYSE:CVS)

Number of Hedge Fund Holders: 74

CVS Health Corporation (NYSE:CVS) is a health solutions company that operates in four segments: healthcare benefits, health services, pharmacy & consumer wellness, and corporate/other. Apart from being a prominent pharmacy chain, the company is one of the largest health insurers in the United States through its Aetna subsidiary’s operations, ranking it eighth on our list of the top stocks that will always grow.

On April 15, Morgan Stanley raised the firm’s price target on CVS Health Corporation (NYSE:CVS) to $80 from $68, keeping an Overweight rating on the shares. Baird also raised the company’s price target to $71 from $51 on the same day, keeping a Neutral rating on the shares.

The company recently conducted key management changes, which may be acting as a catalyst for the stock. Based on year-to-date results through February, CVS Health Corporation (NYSE:CVS) announced that it anticipates financial results to meet or exceed the guidance it previously issued for 2025. Its total revenue for fiscal Q4 2024 also increased to $97.7 billion, reflecting a 4.2% growth compared to the prior year and bringing optimism to its operations. The ongoing changes in the company’s management and operations are thus expected to bring it back on track.

Patient Capital Management also expressed bullish sentiments on the stock, saying that CVS Health Corporation (NYSE:CVS) has a diverse and attractive asset combination, including a pharmacy-benefits manager, healthcare benefits business, at-home primary care, and in-home evaluation business. It said the following in its Q4 2024 investor letter:

“CVS Health Corporation (NYSE:CVS) struggled throughout the year following a number of disappointments related to their Medicare Advantage business. While this had a negative impact on the near-term financials, the issues are well understood, and changes are already being made for the 2025 program. We see a clear pathway to improving margins throughout 2025 in all areas of the business. Furthermore, the company has upgraded their management team promoting David Joyner to CEO and hiring former UnitedHealth Group executive Steven Nelson to run the managed care business. On a longer-term basis, we continue to think CVS has an attractive combination of assets owning a healthcare benefits business (Aetna), a pharmacy-benefits manager (Caremark), an in-home evaluation business (Signify Health) and in-home primary care business (Oak Street Health) supporting the industry transition to a value-based care model. As the company works to implement the turnaround, the company has an attractive dividend yield of 5.8%.”