Top 10 Health Insurance Stocks To Buy

3. CVS Health Corporation (NYSE:CVS)

Number of Hedge Fund Holders: 74

CVS Health Corporation (NYSE:CVS) is an American healthcare company that maintains a large network of retail pharmacies and clinics nationwide. Its main brands include CVS Pharmacy, a retail drugstore chain; CVS Caremark, a pharmacy benefits manager; and Aetna, a health insurance provider. Aetna provides a variety of health insurance alternatives, including commercial coverage plans, Affordable Care Act (ACA) plans, Medicaid plans, Medicare plans, and vision and dental policies.

Bernstein SocGen Group raised its price target for CVS Health (NYSE:CVS) stock to $71 from $52, while maintaining a Market Perform rating on the shares. The revision comes after CVS Health released fourth-quarter profits for 2024, which were above consensus forecasts. Bernstein feels that, while CVS Health’s recent performance is solid, particularly with Aetna’s profits playing a crucial role, the company is currently well valued. According to the firm’s study, CVS Health is well-positioned to sustain its financial performance in the next years.

CVS Health posted better-than-expected fourth-quarter earnings for 2024, with adjusted EBIT of $2.73 billion, higher than the Street’s expectation of $2.30 billion. The company’s adjusted profits per share were also above forecasts, coming in at $1.19 vs the expected $0.91.

Ariel Global Fund stated the following regarding CVS Health Corporation (NYSE:CVS) in its Q4 2024 investor letter:

“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.