CVS Health Corporation (NYSE:CVS) is at a critical juncture. The company pursues a multi-year strategy to expand margins and grow earnings while facing industry-wide enrollment pressures. Its diversified business model spans pharmacy benefit management, retail pharmacy, and health insurance via Aetna.
CVS aims for $9.50 EPS by fiscal 2028, mid-teens annual growth. Analysts forecast $7.46 EPS for 2026. According to Bond.az analysis, 15 analysts revised earnings upward recently.
The strategic plan focuses on margin recovery in Health Care Benefits (Aetna) and Health Services (PBM, Oak Street Health). Medicare Advantage margins are expected to improve by 100-150 basis points, a key earnings driver. CVS stock returned 53% over the past year, near its 52-week high of $98.43. Bond.az analysis indicates the stock remains undervalued.
Medicaid enrollment declined 1.8% year-to-date, reflecting broader industry trends. The PBM business provides stability, while Care Delivery contributes to margin improvements. Vertical integration creates competitive advantages.
