CVS Health Corporation (NYSE:CVS) Stock Technical Signals to Spot a Rally

Taking into account all relevant factors, CVS Health Corporation (NYSE:CVS) scores 100% Buy on the technical side. The share price is also flashing a Buy from the Barchart TrendSpotter trading system. Investors starting out on a short-term path of investing should know that short terms indicators for CVS averaged 100% Buy with an average daily trading volume over the past 20 days at 5148665 shares. Those using medium-term investment strategies, the shares have overall a 1% Buy signal while the 50-day average daily volume remained almost 6500520 shares. It’s also important to note that the stock, whose average daily volume over the 100 days as of this piece was 6519628 shares, is signaling100% Buy for long term investors.

The stock is lingering around the initial support level of $74.27. After this, the following support is at the zone of $73.26. Up until the time the CVS stock hit levels beyond the current one, bulls should have no alarm. In terms of its momentum, the stock’s RSI hit 60.47 on the daily chart, and this may be a cause for concern. In case the price goes below $73.26 level on closing basis, there may be more profit booking with the stock growing weaker. Still, getting to the $75.95 level may cause a pull-back move approaching $76.62 mark.

Let’s take a glimpse at some insider activity at CVS Health Corporation (NYSE:CVS) and observe the pattern. The earliest insider trade happened on 01/08/2020. Roberts Jonathan C parted with a total of 57.56 thousand shares of the firm at average share price of $72.63. The total amount for the sale was set at $4.18 million. On completing this exchange, the EVP & COO account balance was 236.14 thousand shares. The stock grew 3.9 percent from that insider sale. On 11/18/2019, Lynch Karen S, EVP & Pres, Aetna Bus Unit, did a sale of 80.14 thousand shares at a price of $75 per share. This got rid of 6.01 million shares from the insider’s fortune and the stock experienced a 0.61 percent rally in price since the news became public. This exchange saw 123.46 thousand shares get out from the EVP & Pres, Aetna Bus Unit account. On 11/04/2019, EVP and Chief Medical Officer Brennan Troyen A recorded a sale transaction valued at $1.61 million. The sale at $68 a share has eliminated 23.6 thousand shares from the insider’s portfolio position. Meanwhile, shares price witnessed 10.97 percent increase since the transaction reporting date. The company insider is left with 16.61 thousand shares remaining in the account. Flum Joshua Matthew, who works as EVP, ENT STRATEGY & DIGITAL at the company, performed a sale of 17.7 thousand shares in a transaction worth $1.12 million. The disposal recorded on 09/30/2019 was priced at $63 per share. The stock price soared 19.78 percent since the transaction. Flum Joshua Matthew currently holds a stake of 15.32 thousand in CVS stock which is worth $1.16 million after the insider selling.

In the recent trading session, CVS Health Corporation (NYSE:CVS) shares gained 0.37% or 0.28 points to reach at $75.55 with a thin trading volume of 849.625 thousand shares. It opened the trading session at $73.99, the shares rose to $75.62 and dropped to $73.94, the range by which the price of stock traded the whole session. The company now has a market cap of $98.9 billion and currently has 1.31 billion outstanding shares. CVS Health Corporation (CVS) stock has accumulated 2.28 percent of market value in 21 trading days.

Stock analysts at RBC Capital Mkts, assumed coverage of shares of CVS Health Corporation (NYSE:CVS) with Outperform recommendation, according to their opinion released on September 27. Analysts at Standpoint Research issued an upgrade for the stock to Buy from previous rating of Hold, in a research note that dated back to June 05.

CVS stock’s trailing 3-year beta is 0.9, meaning there will be a lower rate of return, although posing a lower risk. The part of a firm’s profit given to each outstanding share of regular stock was $3.28 share in the trailing 52 weeks. The stock’s value surged 1.32 percent year to date (YTD) compared to a rise of 18.09 percent in 52 week’s period. The firm’s shares are still trading -1.93 percent below its 1-year high of $77.03 and 46.07 percent up from 52-week low of $51.72. The average consensus ranking on the company is 2.1, on a ranging where 5 is equal to a consensus sell rating. In other words, the mean analyst recommendations are ranking this stock as a sell.

CVS Health Corporation (CVS) shares are trading at a P/E ratio of 22.19 times earnings posted in the trailing 12 months. The industry CVS deals with has an average P/E of 19.55. Its P/B ratio is standing at 1.53X compared to the 2.14 industry average. It is additionally sporting a 0.34 on the Price-to-Sales ratio, compared to the industry’s P/S average of 0.08. CVS Health Corporation has a 36.8% gross profit margin, with its operating margin around 4.2%. Alongside this, the company’s net profit margin currently stands at 1.8%.

Past records have indicated that shares in CVS Health Corporation rose on 23 different earnings reaction days and we have yet to see whether this trend will play out and remain in place when the company reports upcoming earnings. Investors will get the next hint of CVS’s Q4 earnings on February 12. Analysts are predicting revenue to climb 17.5 percent to $64B in the financial fourth quarter, while EPS will soar by about -21.5 percent to $1.68 per share. In the last quarter, it’s earnings of $1.84 per share came better than the $1.76833, adjusted, expected by Thomson Reuters consensus estimate. Revenue for the quarter was $54.42B, topping the $53.78B analysts had expected. Earnings are seen to rise by -113.4 percent this year, 1.52 percent in the coming year and the trend continues by 2.88 percent every year in the next 5 years.