Why CVS Health Corp. (CVS) Surged On Wednesday

We recently published a list of These 10 Stocks Led Rally on Wednesday. In this article, we are going to take a look at where CVS Health Corp. (NYSE:CVS) stands against other stocks that led rally on Wednesday.

Ten companies led the charge on Wednesday, bucking a mostly pessimistic broader market, on the back of better outlook, positive earnings performance, and news of government support.

Wall Street’s main indices finished mix, with the Dow Jones and S&P 500 declining 0.50 percent and 0.27 percent, respectively. Nasdaq was the sole gainer, albeit inching up only 0.03 percent during the day.

In this article, we will explore the reasons behind the 10 firms’ strong performance. To come up with Wednesday’s top gainers, we considered only the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.

A row of shelves in a retail pharmacy, demonstrating the variety of drugs and over-the-counter products.

CVS Health Corp. (NYSE:CVS)

CVS Health surged by 14.95 percent on Wednesday to end at $63.22 apiece as investors cheered the company’s optimistic outlook for its performance this year.

In a statement, CVS President and CEO David Joyner said that the company “will be positioned for stronger performance in 2025” as it works on delivering better care for consumers while improving outcomes and reducing costs.

The bullish outlook came despite mixed earnings results in the fourth quarter and full year of 2024.

In the last three months of 2024, CVS said net income fell by 28 percent to $1.6 billion from the $2.047 billion registered in the same period last year, as well as by 45 percent to $4.59 billion in 2024 from $8.37 billion in 2023.

The lower net income came despite revenues growing by 4 percent in the last three months, at $97.7 billion from $93.8 billion year-on-year, as well as in 2024 at $372 billion from $357.8 billion.

Overall, CVS ranks 4th on our list of stocks that led rally on Wednesday. While we acknowledge the potential of CVS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as CVS but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.