10 Best Telehealth Stocks to Buy Now

2. 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. The company provides affordable, high-quality, and connected care solutions to its customers whenever and wherever they require it, including at-home health services and virtual services through their tablets, computers, or phones. 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 second on our list of the best telehealth stocks to invest in.

CVS Health Corporation (NYSE:CVS) has a diversified business, and its solid market presence across various segments gives it a competitive edge. In recent years, it has focused on primary care, expanding its portfolio through its Cordavis subsidiary, which markets and develops biosimilar drugs.

While the company’s future performance under a new CEO is uncertain, its total revenue for fiscal Q4 2024 increased to $97.7 billion, reflecting a 4.2% growth compared to the prior year and bringing optimism to its operations. Although the company has delivered underwhelming results in the past, it is undergoing several recent management changes and initiatives that are expected to bring it back on track.

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. Patient Capital Management stated the following regarding CVS Health Corporation (NYSE:CVS) 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%.”