CVS trade ideas
CVS Breaking out Longterm?NYSE:CVS will be pulling Aetna out of the ACA Exchange Business in 2026. the Exchange has caused significant losses for the company from 2022-2024. Its refocus allows for resources to be placed in areas that are likely to be more profitable and allow for a competitive advantage which the ACA exchange did not allow for.
-states have different rules,
-80% of premiums had to go towards care,
-thin profit margins due to High Medical Loss Ratios of 87%,
-Low Enrollment
Since late 2024 CVS has made strong strides trending up. Q1 2025 earnings were good as well with net income totaling $1.8 Billion. Couple this with recent rise in healthcare stocks thanks to news that Warren Buffet of Berkshire Hathaway purchased 5 Million shares of NYSE:UNH
With all things being constant in current market conditions NYSE:CVS can rise further in a wave 1 up breaking out of this two year wave 2 down.
CVS LongPrice tested the 200 SMA 2x since May and has since made a series of higher highs and higher lows.
Most recently, we see price close at the confluence of several key levels.
It closed:
1. above the .50 Fibonacci level.
2. At the POC line (ytd)
3. Above the descending weekly trend line (yellow).
In addition, we see D+ crossing D-, indicating that buyers are taking control.
The OBV confirms the trend.
First target: $72.48
Second target: $80.60
Break Out NeededStochastic Oscillator is overbought
RSI 67.03 approaching overbought levels
VIX indicator flashing top is in
Price is fighting the 100 EMA
Price reached golden zone of the Fib level
Price has cycle up to the upper resistance of the downward parallel channel.
We need price to break out the parallel channel and overcome the 64.75 resistance for some bullish action, unless the bears are going to cycle the prices down possibly.
CVS Health Corporation – Double Top Breakdown Setup📉 Short Setup
🔍 Description:
CVS Health (NYSE: CVS) is forming a double top pattern, indicating potential bearish momentum. A break below the confirmation level would signal further downside.
📊 Trade Details:
Entry: Below confirmation level
🔴 Stop Loss: 71.06
🟢 Target: 56.87
📌 Confirmation :
A breakdown from the double top with increased volume would strengthen the bearish case. A failed breakdown could invalidate the setup.
Trade cautiously! 🚀📉
Major retrace sits at 53, buy zone all the area of importanceWe see a playful insight into the upgrade, continuing fundamentals, cash flow, and catalysts setting up inflow. But we don't see that the oscillators are in severe deterioration, and the magic needs a bit of wondering where it could settle down next. Not only a gap in this area, a major turning point, but also an indicator of strength has been decided. 50 is the magic here.
Reasons to Invest in CVS Health (CVS)Reasons to Invest in CVS Health (CVS)
Strong Market Position
CVS Health is a leading healthcare company with a diversified business model, including retail pharmacies, insurance, and healthcare services. Its extensive network provides a competitive advantage.
Attractive Valuation
CVS is currently trading at a P/E ratio of approximately 12.23, which is lower than its historical average of 17.55. This suggests the stock may be undervalued compared to its long-term performance【41】.
Consistent Free Cash Flow (FCF)
The company generates significant free cash flow, which allows it to invest in growth, reduce debt, and return capital to shareholders.
Dividend and Shareholder Returns
CVS has a stable dividend policy with a payout ratio that allows for sustainable growth while reinvesting in the business【40】.
Resilient Business Model
The healthcare industry is defensive, meaning CVS can perform well even in economic downturns. The company benefits from consistent demand for prescriptions and healthcare services.
Future Growth Potential
CVS is expanding its healthcare services through acquisitions and technology-driven solutions. Investments in Medicare, pharmacy benefits, and digital health are expected to drive long-term growth.
Would you like a deeper fundamental comparison between CVS and its competitors?
CVS Health Corp | CVS | Long at $43Not much to write about here except the stock has reentered the "crash" simple moving average area (see green lines). Often, this signals an overall bottom, but it doesn't mean a further dip below $40 isn't possible in the near-term. Personally, I can't ignore this reentry and thus have started a position at $43 (after closing out a previous position in October in the $60's). The company has a lot of headwinds, but if Walgreens NASDAQ:WBA is also in trouble, is NYSE:CVS too big to fail in the short-term?
Target #1 = $53.00
Target #2 = $60.00
Target #3 = $65.00
Target #4 = $68.00
Negative sentiment is exaggeratedCVS currently trading at a FWD PE of 8.44, well below 16x historical average.
CVS's shiller PE is significantly below its median shiller PE of 18.22, also its shiller PE is currently ranked better than 69% of 13 companies in the healthcare plans industry.
The PBM segment contributes 46% of CVS income; a 25% PMB profitability cut would reduce the EPS to ≈$4, implying a fair value of $60 and a P/E of 15x
Tax loss harvesting is over and institutional ownership still stands high at 82% with only 1.51% of shares shorted.
Technically, SP is trading at previous significant resistance/support levels back to late 2013. Also the RSI just hit the 30% level on the 3 day chart, the last 4 times that this level was reached the SP increased an average of 32% before a primary trend was continued or major retracement occured.
CVS Health Corp | CVS | Long at $61.00NYSE:CVS Health Corp will need a revision to its business model in order to survive an ever-changing retail/pharmacy environment. However, with a P/E of 10x, debt-to-equity of less than 1x, growing cash flow, and dividend yield of 4.3%, the stock seems quite undervalued. Perhaps activist investors will soon step in, but if history repeats, there may be a nice bounce ahead as the price consolidates in the GETTEX:50S and low $60s. Thus, near its current price of $61, NYSE:CVS is in a personal buy zone.
Target #1 = $66.00
Target #2 = $68.00
Target #3 = $75.00
Target #4 = $79.00
CVS Pharma A+ buy setup off daily supply and demand strategyCVS has had a major sell off due to the pharmaceutical incidents that have occured in the recent days. But the mean reversion is possible the greatest scenario today. CVS is holding its most major demand zone in the last years. It has finally reached it again. I am going to buy CVS here at $51 per share and sell shares 60 75 80. My stops are under the break of structure off our major demand zone + extra dollars to prevent a liquidity grab. Stops are at $41.
The point of the stock market is buying at a discount and selling as your shares increase.
Boom shakala Boom!
This is not financial advice, take a grain of salt. Past performance does not indicate future results, alright dont forget!
Looking for an obvious breakout on CVS! 🔉Sound on!🔉
Thank you as always for watching my videos. I hope that you learned something very educational! Please feel free to like, share, and comment on this post. Remember only risk what you are willing to lose. Trading is very risky but it can change your life!
CVS - CVS Health: If the stock drops a few points, I'll be buyiIf the stock drops a few points, I'll be buying very heavily...
CVS and WBA are in the same sector. And both have been decimated. CVS, however, is doing better. And they're paying a dividend.
Target, at least +10%.
Trading at 70% below estimate of its fair value
Earnings are forecast to grow 9% per year
Earnings grew by 140% over the past year
DIVIDEND = Pays a high and reliable dividend of 4.75%
Trading at good value compared to peers and industry
Analysts in good agreement that stock price will rise by 20%