CVS Health Stock Still Looks Good Even If Health Cost Woes Materialize

Summary CVS Health Corporation stock remains fairly attractive as a growing industry leader, currently rated a soft Buy due to improved profitability and relative valuation. Recent results show revenue up 6.7% year-over-year to $206.5B and net income more than doubling, driven by segment-level operational improvements. CVS's Health Care Benefits segment reversed prior profitability declines, aided by strategic exits and a lower medical benefit ratio (MBR) now at 86%. Management expects 2026 revenue of at least $414B, adjusted EPS of $7.90–$8.10, and strong cash flow, despite ongoing elevated medical costs and utilization. Looking for a helping hand in the market? Members of Crude Value Insights get exclusive ideas and guidance to navigate any climate. Learn More » bgwalker/iStock Unreleased via Getty Images Truth be told, I am surprised how long it has been since I last wrote an article about CVS Health Corporation ( CVS ). When somebody else recommended that I take a look at This article was written by Daniel Jones 37.92K Followers Follow Daniel is an avid and active professional investor. He runs Crude Value Insights, a value-oriented newsletter aimed at analyzing the cash flows and assessing the value of companies in the oil and gas space. His primary focus is on finding businesses that are trading at a significant discount to their intrinsic value by employing a combination of Benjamin Graham's investment philosophy and a contrarian approach to the market and the securities therein. Learn more. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.