Stocks On the Rise: 10 Best Stocks to Buy Right Now

2) CVS Health Corporation (NYSE:CVS)

% Gain on a YTD Basis: ~49.1%

Market cap as on March 6: ~$83.0 billion

Number of Hedge Fund Holders: 74

CVS Health Corporation (NYSE:CVS) offers health solutions. Mizuho Securities analyst Ann Hynes maintained the bullish stance on the company’s stock, providing a “Buy” rating. The analyst’s rating is backed by several factors that suggest potential for the stock. The recent earnings report demonstrated that CVS Health Corporation (NYSE:CVS) performed better than the anticipations in Q4 2024, with adjusted EPS exceeding both consensus and internal estimates. Notably, the company posted GAAP diluted EPS of $1.30 and adjusted EPS of $1.19 in Q4 2024. As per the analyst, this indicates robust operational performance, mainly in the face of challenges within the Health Care Benefits segment, which exceeded the expectations despite a decline.

Furthermore, Hynes highlighted that CVS Health Corporation (NYSE:CVS)’s guidance for 2025, despite slightly below consensus, was received positively, as it demonstrates a transitional year for the company that could result in a recovery in margins in upcoming years. Elsewhere, Allen Lutz from Bank of America Securities reiterated a “Buy” rating on CVS Health Corporation (NYSE:CVS)’s stock with a price target of $75.00, courtesy of the potential earnings growth driven by Aetna’s ability to support its existing earnings base as it returns to normal profit margins.  Additionally, the substantial operating leverage in the company’s model supports this rating.

Ariel Investments, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:

“Lastly, American healthcare company, CVS Health Corporation (NYSE:CVS) underperformed in the period. The company preannounced a third-quarter preliminary profit estimate materially below consensus expectations and pulled its 2024 guidance due to continued medical cost pressures. Investor concerns around the recently proposed Pharmacy Benefit Management (PBM) legislation further weighed on shares. Despite these challenges, management reiterated its focus on improving margins and enhancing its positioning in Medicare Advantage (MA). CVS believes the program can remain an attractive business for Aetna and CVS Health over time as it implements a multi-year repricing strategy across plan level benefits. Meanwhile, CVS continues to take actions to drive long-term success including the appointment of longtime company executive David Joyner as President and CEO as well as adding four new board members.”