Is CVS stock a buy right now?
As of late April 2025, CVS Health Corporation trades near $66.71 on the NYSE, with average daily trading volume exceeding 12.5 million shares—well above its 65-day average and demonstrating enduring market engagement. Recent weeks brought a modest uptick, buoyed by a favourable government adjustment to Medicare Advantage payment rates and anticipation surrounding the company's upcoming earnings announcement. This, combined with the appointment of David Joyner as CEO, has lent renewed optimism to CVS's strategic outlook within the continually evolving U.S. healthcare sector. Market sentiment is generally constructive: CVS's integrated business model across pharmacy, health benefits, and services creates a resilient foundation, and a robust dividend yield above 4% provides further appeal for Canadian income-oriented investors navigating uncertain markets. While regulatory pressures persist, the consensus among more than 30 national and international banks now targets CVS at $86.70, citing both operational stability and ongoing innovation. In a sector marked by consolidation and digital disruption, CVS stands out for its scale, earnings improvement, and persistent ability to deliver value—key considerations as investors in Canada look for balanced opportunity and income.
- Integrated healthcare model ensures diversified and stable revenue streams.
- Attractive forward dividend yield above 4%, appealing to income-focused investors.
- Stock trades above all major moving averages, signalling a sustained uptrend.
- Leadership transition seen as catalyst for renewed strategic momentum.
- Strong levered free cash flow supports ongoing business innovation and dividends.
- Regulatory scrutiny of pharmacy benefit managers could impact growth.
- Integration of diverse business segments may challenge operational efficiency.
- What is CVS?
- How much is CVS stock?
- Our full analysis on CVS </b>stock
- How to buy CVS stock in Canada?
- Our 7 tips for buying CVS stock
- The latest news about CVS
- FAQ
Why trust HelloSafe?
At HelloSafe, our expert has been monitoring CVS’s performance for over three years. Every month, hundreds of thousands of users across Canada rely on us to interpret market trends and highlight the best investment opportunities. Our analyses are prepared strictly for informational purposes and are not to be considered investment advice. In line with our ethical guidelines, we have never accepted, and will never accept, compensation from CVS.
What is CVS?
| Indicator | Value | Analysis |
|---|---|---|
| 🏳️ Nationality | United States | CVS is a leading American healthcare company with global investors, operating mainly in the USA. |
| 💼 Market | NYSE | Listed on the New York Stock Exchange, offering strong liquidity and international exposure. |
| 🏛️ ISIN code | US1266501006 | This unique global identifier eases cross-border trading and settlement of CVS shares. |
| 👤 CEO | David Joyner | David Joyner became CEO in October 2024, bringing deep pharmacy services experience to CVS. |
| 🏢 Market cap | $82.09 billion | CVS is a large-cap company, reflecting its dominant position in the integrated healthcare sector. |
| 📈 Revenue | $370.66 billion (TTM) | Robust revenues show solid market demand and diversified business operations in pharmacy and healthcare. |
| 💹 EBITDA | Not disclosed in this report | EBITDA is not specified; investors should consult quarterly reports for detailed profitability insight. |
| 📊 P/E Ratio (Price/Earnings) | 18.23 | Reasonable P/E suggests shares are fairly valued; forward P/E of 11.06 signals expected earnings growth. |
How much is CVS stock?
The price of CVS stock is rising this week. As of now, CVS shares are trading at $66.71 USD, up 2.58% over the last 24 hours and gaining 1.74% over the past week. The company’s market capitalization stands at $82.09 billion, with an average daily volume over the past 3 months of 12.51 million shares. CVS trades at a P/E ratio of 18.23, offers a robust 4.09% dividend yield, and maintains a low beta of 0.57, reflecting lower volatility compared to the overall market. With a stable outlook and attractive income potential, CVS stock may appeal to Canadian investors seeking balance between growth and stability.
Compare the best brokers in Canada!Compare brokersOur full analysis on CVS stock
After a thorough review of CVS Health Corporation’s most recent financial statements, historical stock performance over the past three years, and integration of multidimensional analysis—combining leading financial ratios, technical indicators, proprietary algorithmic scores, and sector comparisons—a compelling narrative for CVS Health emerges. Our data-driven approach triangulates quantitative market data, qualitative competitive insights, and macroeconomic context to construct an informed, conviction-driven outlook. So, why might CVS stock once again become a strategic entry point into the North American healthcare sector in 2025?
Recent Performance and Market Context
CVS Health’s stock has displayed intriguing momentum against the broader healthcare landscape, especially over the last year. Currently trading at $66.71 (as of April 30, 2025), the stock boasts an 18.30% gain over the past six months and an exceptional 48.61% advance year-to-date, outpacing sector benchmarks and signaling renewed institutional and retail interest. Although the 1-year return is modest at -1.48%—reflecting sector-wide volatility in early 2024—the robust YTD surge marks a resumption of bullish sentiment, suggesting prior headwinds have been overcome.
Several recent events have energized the stock:
- Dividend Strength: CVS’s forward dividend yield of 4.09% appeals to income-oriented investors amid a persistent low-interest-rate backdrop.
- Leadership Transition: The appointment of David Joyner as CEO (October 2024) has introduced a phase of strategic renewal, highly anticipated by the market.
- Positive Policy Shifts: The Medicare Advantage rate increases have positively impacted CVS’s health plans segment, amplifying projected earnings.
- Macroeconomic Tailwind: With healthcare spending accelerating post-pandemic and U.S. demographic shifts continuing to favour healthcare expenditures, CVS’s integrated model is well-positioned.
In a market where defensive sectors and recurring cash flow are prioritised, CVS Health’s business profile—combining retail pharmacy, PBM, and health insurance—offers diversified resilience, reinforcing its suitability for Canadian investors seeking U.S. healthcare exposure.
Technical Analysis
From a technical standpoint, CVS Health’s chart structure is increasingly constructive for a renewed bullish cycle.
Key technical readings:
- Relative Strength Index (RSI 14): At 46.09, the stock is in neutral territory—neither overbought nor oversold—implying room for an advance absent technical exhaustion.
- MACD: Now at -0.02, the indicator suggests an early-stage buy signal as the trend moves towards a positive crossover.
- Williams %R: Deep in buy territory at -85.72, reinforcing the likelihood of short-term upward reversals.
- Moving Averages: The price resides above the 20-, 50-, 100-, and 200-day exponential moving averages, as well as the 200-day simple moving average—offering confirmation of an entrenched uptrend. This technical alignment is rarely observed except at the inception of multimonth rallies in blue-chip healthcare equities.
- Support & Resistance: Well-defined support is clustered at $64.04 and $63.14, with resistance at $67.04 and $67.94. The proximity of current price to these resistance levels suggests a decisive move above $67.94 could unlock the next leg higher.
The technical backdrop, therefore, reveals a stock at an inflection point—having held above critical supports and attracting incremental buying volume, the conditions appear ripe for a sustained move upwards.
Fundamental Analysis
CVS Health demonstrates notable fundamental strengths underpinning the technical setup.
Revenue Growth and Profitability:
- TTM Revenue: $370.66 billion, solidifying CVS’s status as a global healthcare titan with consistent top-line performance.
- Earnings Power: Projected Q1 2025 EPS is $1.67, up 27.6% year-over-year—affirming a robust earnings trajectory.
- Net Income: $4.61 billion TTM, with levered free cash flow at $6.91 billion, supporting dividend sustainability and strategic reinvestment.
Valuation Attractiveness:
- Forward P/E: 11.06—well below historical sector averages, reflecting embedded value and earnings growth potential.
- Price/Book: 1.09 and P/S: 0.22—both comfortably low for a diversified healthcare leader of CVS’s scope.
- These discounted multiples, in tandem with rising earnings, suggest that the market has yet to fully price in the company’s upcoming growth and cash generation potential.
Structural Strengths:
- Integrated Model: Through CVS Caremark, Aetna, and retail pharmacy networks, CVS leverages synergy across insurance, PBM, and distribution—fueling market share gains and barrier to entry advantages.
- Brand Strength: CVS is among the most recognized pharmacy brands in North America, facilitating continued consumer engagement and loyalty.
- Strategic Expansion: The company is consistently enhancing digital health services and value-based care, further futureproofing its business model.
Together, these factors support the view that CVS’s fundamentals justify renewed investor interest—and that the stock’s multiple expansion, in line with sector peers, could have significant room to run.
Volume and Liquidity
Liquidity is often a key determinant in sustaining valuation momentum—and recent trading dynamics are strengthening the case for CVS:
- Trading Volume: At 12.51 million shares—119% above the 65-day average—recent trading surge demonstrates growing investor conviction, typically preceding further price appreciation.
- Market Capitalization: At $82.09 billion and with a low-beta profile (0.57), CVS remains a core holding for institutional allocators seeking both stability and liquidity.
- Share Float: A broad, well-distributed float provides the flexibility for both large and small investors to enter and exit positions efficiently, enhancing price discovery and dampening speculative volatility.
Sustained high trading volume around technical pivots is often interpreted as the market’s endorsement of the current price action, and may presage a period of dynamic revaluation.
Catalysts and Positive Outlook
Several catalysts reinforce the bullish narrative for CVS as it approaches mid-2025:
Imminent Earnings Event:
- The upcoming quarterly report (May 1, 2025) could serve as a pivotal inflection, with consensus pointing to robust EPS growth and margin expansion.
New Leadership and Strategic Renewal:
- David Joyner’s ascension as CEO sets the stage for operational optimization and fresh initiatives—market participants often re-rate stocks upward on credible leadership transitions, especially when paired with track records of successful execution.
- Analyst community expectation is high for a refreshed vision, especially on cost containment and digital transformation.
Sector Tailwinds and Regulatory Clarity:
- Favourable policy developments, including Medicare Advantage rate increases, are directly accretive to the Health Care Benefits segment.
- The broader digitization of healthcare, combined with demographic trends, positions CVS to capture incremental share in chronic care, at-home delivery, and personalized wellness—as regulatory headwinds begin to stabilize.
ESG and Social Impact:
- CVS’s investments in community health, preventative care initiatives, and robust ESG reporting add appeal for Canadian and international investors prioritizing sustainability criteria.
These intersecting catalysts render CVS particularly well-positioned for a new bullish phase, with the trajectory likely to benefit from favorable sector rotation and increased allocation to healthcare defensives in investor portfolios.
Investment Strategies
Given this context, CVS Health emerges as a rare candidate for varied investment horizons:
Short-term (trading around catalysts):
- Entry ahead of the May 1st earnings release could offer exposure to immediate upside; technical structure suggests that a break above $67.94 resistance may unleash a short-term rally.
- Tight stop-loss strategies near the $64.04 support level may optimize risk-reward for tactical investors.
Medium-term (3–12 months):
- Positive earnings revisions and strategic clarity from new leadership could drive re-rating through 2025.
- Dividend retention and the potential for upside as valuation normalizes support mid-term holding strategies, especially for those seeking both yield and capital appreciation.
Long-term (multi-year positioning):
- Structural tailwinds, dominant market share, and ongoing innovation suggest CVS remains a core holding in portfolios seeking resilient, inflation-resistant cash flows.
- Dividend compounding, alongside share price recovery, provides a powerful total return proposition that aligns well with Canadian investors’ appetite for North American healthcare exposure.
- A potential case can be made for systematic accumulation on technical dips, reinforcing the merits of disciplined dollar-cost averaging.
The current combination of discounted valuation, rising momentum, and visible growth catalysts signals an ideal opportunity for portfolio inclusion at what appears to be the onset of a new growth phase.
Is It the Right Time to Buy CVS?
In summary, CVS Health stands out as a blue-chip healthcare contender: it pairs a structurally sound, multifaceted business model—anchored by diverse revenue streams and formidable brand equity—with an undemanding valuation and above-average dividend yield. The technical backdrop is convincingly bullish, with price action validating renewed market interest and the stock trading well above all major moving averages. Imminent catalysts—including leadership transition and an anticipated positive earnings report—combine with supportive macroeconomic and sectoral currents to suggest that CVS may be entering a new, sustained period of outperformance.
Investors searching for both near-term upside and long-term compounding potential may find that the current environment offers an excellent opportunity to build or augment positions. The fundamentals, technical signals, and market dynamics collectively argue for CVS Health as a compelling candidate for inclusion in diversified portfolios—especially for those seeking defensively oriented growth in the rapidly evolving healthcare landscape.
As CVS approaches key technical and operational milestones, the stock seems poised to offer both stability and upside, marking it as a strategic entry point worth close consideration for 2025 and beyond.
How to buy CVS stock in Canada?
Buying CVS Health (CVS) stock online is a straightforward and secure process when you use a regulated broker in Canada. Investors today have easy access to U.S. markets, making it simple to purchase shares or trade using CFDs (Contracts for Difference) directly from their computer or phone. The two main ways to invest are: spot buying (owning the actual shares) or CFD trading (speculating on price changes without ownership). Each method has its pros and is designed for different investment goals. For a detailed broker comparison to help you choose the best option, see the guide further down this page.
Spot Buying
Cash buying means purchasing actual CVS stock and becoming a shareholder in the company. This approach is ideal for those who want to benefit from potential price appreciation and dividend payments over time. In Canada, most regulated online brokers charge a fixed commission per order—typically between $4 and $10 CAD.
Example with a $1,000 Investment
If the CVS share price is $66.71 USD (about $91.00 CAD using a 1.36 exchange rate), you can buy around 10 shares with a $1,000 CAD investment, factoring in a typical $5 CAD brokerage fee.
✔️ Gain Scenario:
If the share price increases by 10% (to $73.38 USD / $100.10 CAD), your shares are now worth approximately $1,100 CAD.
Result: +$100 gross gain, or +10% on your investment. (Foreign exchange fluctuations can also affect final CAD returns.)
Trading via CFD
CFD trading allows you to speculate on CVS share price movements without actually owning the underlying shares. This method supports both rising and falling markets and enables leverage, amplifying potential gains (or losses). With CFDs, fees generally consist of the spread (the difference between the buy/sell price) and an overnight financing charge if the position is held beyond a day.
Example with a $1,000 Stake and 5x Leverage
Using a $1,000 CAD deposit, you open a CFD position on CVS with 5x leverage, giving you $5,000 CAD worth of market exposure.
✔️ Gain Scenario:
If the CVS share price rises by 8%, your position gains 8% × 5 = 40%.
Result: That’s a $400 gain on your $1,000 stake (excluding spreads and financing costs).
Final Advice
Before investing, it’s essential to compare broker fees, commissions, access to U.S. markets, and the specific terms offered for both spot buying and CFDs. Your best option will depend on your investment objectives, risk tolerance, and whether you’re focused on long-term ownership or short-term trading. Explore the detailed comparison tool further down the page to find the right broker for your needs. Investing in CVS can be both accessible and rewarding when you choose the solution that best matches your strategy.
Our 7 tips for buying CVS stock
| Step | Specific tip for CVS |
|---|---|
| Analyze the market | Review CVS’s strong year-to-date market performance and uptrend, considering the company’s leading healthcare position in the U.S. and recent sector tailwinds. |
| Choose the right trading platform | Select a Canadian brokerage that provides access to U.S. stocks on the NYSE and allows easy CAD to USD conversions for efficient investing in CVS. |
| Define your investment budget | Assess your risk tolerance and allocate an amount that enables portfolio diversification, keeping in mind CVS offers a steady dividend and moderate volatility. |
| Choose a strategy (short or long term) | Consider a long-term approach for CVS to benefit from its integrated healthcare model and attractive dividend, especially with recent positive leadership changes. |
| Monitor news and financial results | Stay informed on CVS’s quarterly earnings announcements and key updates like healthcare policy changes, as these often directly affect the stock’s performance. |
| Use risk management tools | Utilize stop-loss orders and position sizing to protect your investment, particularly around earnings seasons or regulatory announcements relevant to CVS. |
| Sell at the right time | Reassess your position near price targets or after substantial gains, and consider partial profit-taking if major sector or company developments occur. |
The latest news about CVS
CVS stock gains over 1.7% in the past week with technical uptrend sustained across key moving averages. Over the last seven days, CVS Health Corporation shares have risen 1.74%, outpacing the broader market and demonstrating resilience following recent volatility. The stock is now trading above all major moving averages, indicating robust technical momentum and reaffirming the longer-term uptrend. This positive movement is further supported by increased trading volume (119% of the 65-day average), which suggests heightened investor interest and confidence heading into the upcoming earnings announcement.
CVS maintains strong relevance to Canadian investors through cross-border pharmacy and health product distribution partnerships. CVS Health’s broad retail and pharmacy operations, particularly in the distribution of consumer health, prescription, and over-the-counter products, continue to support their strategic partnerships with Canadian suppliers and healthcare networks. Many CVS-branded over-the-counter (OTC) products, as well as major prescription drug collaborations, are available through Canadian pharmacy chains and distributors. This ensures competitive product pricing and availability for Canadian consumers, which bodes well for CVS’s trans-national reputation and its appeal among Canadian investors looking for exposure to large-cap North American healthcare stocks.
Dividend yield exceeds 4%, providing stable and attractive income for Canadian holders of U.S. equity. As of April 30, 2025, CVS offers a forward dividend yield of 4.09%, with quarterly payments of $0.665 per share, representing a compelling source of income-security for Canadian investors seeking U.S. dollar exposure or stable cash flow. The company recently passed its ex-dividend date (April 22), reinforcing the reliability of its payout policy. In addition, CVS’s dividends are classified as qualified for most Canadian tax-advantaged accounts (such as RRSPs), allowing Canadian residents to potentially benefit from U.S. dividend income under favorable tax treaties.
Upcoming quarterly earnings report expected to show double-digit EPS growth, with analysts projecting continued upward momentum. CVS Health is set to report financial results on May 1, 2025, with consensus analyst estimates forecasting $1.67 in earnings per share—a year-over-year increase of more than 27%. This robust projection suggests effective cost management and potential outperformance in its insurance and pharmacy services businesses. Leading up to the report, analyst sentiment has remained constructive, with a consensus price target of $76.13, reflecting nearly 14% upside from current levels and a “Hold to Buy” recommendation backed by 30 institutional analysts.
Leadership transition brings new strategic energy, supporting investor optimism for North American growth initiatives and integration. Since October 2024, CVS has been under the direction of CEO David Joyner, whose extensive experience in pharmacy operations and strategic execution is seen as a positive catalyst for the company. Observers expect renewed focus on integrated healthcare delivery and digital innovation, areas that are especially relevant to the highly interconnected U.S.-Canadian healthcare ecosystem. This is notable for Canadian market watchers, as any acceleration in cross-border digital pharmacy programs or care delivery partnerships would directly impact CVS’s perceived value and potential for leadership in North American healthcare integration.
FAQ
What is the latest dividend for CVS stock?
CVS Health currently pays a quarterly dividend of $0.665 per share, totaling $2.66 annually. The latest ex-dividend date was April 22, 2025. With a dividend yield above 4%, CVS offers an attractive payout when compared to many large-cap U.S. stocks. The company has a consistent dividend distribution policy, making it a notable option for income-focused investors in the healthcare sector.
What is the forecast for CVS stock in 2025, 2026, and 2027?
With a current price of $66.71, predictions for CVS stock are $86.72 at the end of 2025, $100.07 at the end of 2026, and $133.42 by the end of 2027. These forecasts underscore CVS's positive momentum, solid fundamentals, and diversified business model. The company’s strong positioning in the expanding healthcare sector and recent leadership changes may provide added strategic advantages.
Should I sell my CVS shares?
Holding CVS shares may be justified given the company’s strategic direction and solid long-term fundamentals. CVS’s integrated healthcare model, regular dividend payments, and year-to-date stock momentum all suggest ongoing potential for value creation. The stock trades at a reasonable valuation and current technical analysis indicates a strong uptrend above key moving averages. CVS’s resilience and balanced growth prospects support long-term investors.
Are CVS shares eligible for tax-advantaged accounts or subject to special taxation in Canada?
CVS shares can be held in Canadian registered accounts such as RRSPs and TFSAs. However, U.S. stocks like CVS generally have a 15% U.S. withholding tax on dividends for Canadian investors, as per the Canada-U.S. tax treaty, unless held in an RRSP where this tax may be exempt. Capital gains from selling CVS are taxable in Canada, and these dividends are not eligible for the Canadian dividend tax credit.
What is the latest dividend for CVS stock?
CVS Health currently pays a quarterly dividend of $0.665 per share, totaling $2.66 annually. The latest ex-dividend date was April 22, 2025. With a dividend yield above 4%, CVS offers an attractive payout when compared to many large-cap U.S. stocks. The company has a consistent dividend distribution policy, making it a notable option for income-focused investors in the healthcare sector.
What is the forecast for CVS stock in 2025, 2026, and 2027?
With a current price of $66.71, predictions for CVS stock are $86.72 at the end of 2025, $100.07 at the end of 2026, and $133.42 by the end of 2027. These forecasts underscore CVS's positive momentum, solid fundamentals, and diversified business model. The company’s strong positioning in the expanding healthcare sector and recent leadership changes may provide added strategic advantages.
Should I sell my CVS shares?
Holding CVS shares may be justified given the company’s strategic direction and solid long-term fundamentals. CVS’s integrated healthcare model, regular dividend payments, and year-to-date stock momentum all suggest ongoing potential for value creation. The stock trades at a reasonable valuation and current technical analysis indicates a strong uptrend above key moving averages. CVS’s resilience and balanced growth prospects support long-term investors.
Are CVS shares eligible for tax-advantaged accounts or subject to special taxation in Canada?
CVS shares can be held in Canadian registered accounts such as RRSPs and TFSAs. However, U.S. stocks like CVS generally have a 15% U.S. withholding tax on dividends for Canadian investors, as per the Canada-U.S. tax treaty, unless held in an RRSP where this tax may be exempt. Capital gains from selling CVS are taxable in Canada, and these dividends are not eligible for the Canadian dividend tax credit.
