CVS Health Corporation [NYSE:CVS] price is worthing noting Wednesday. The current price is $60.17 with a high of $59.9789 and $58.56. Analysts see the the current price target is $80.00.
To ground this price against the rest of the market, over the last two 52 weeks, the company is trading -1.59%, while the S&P 500 is trading 0.55%. Traders should note that the company’s next earning date is 11/06/2020. The company has price per sales of 0.29 and price per cash flow of 7.06.
Wait and see
Holding a Market Cap of $77.78 billion, CVS Health Corporation has seen a trading range over the last year of $52.04-$77.03.
For the last five days, CVS is up from its last closing price. The average shares trading hands each day is 7.60M, with average 10-day volume coming in at 6.36 million.
Using a Force Index Indicator is a good way to look at how strong actual buying and selling pressure is for CVS. When we apply the Elder Force Index to CVS Health Corporation, we are seeing an Elder Force Indicator number of 927603.75.
Recent Performance
The recent performance of the stock is another area that can tell traders how to proceed. CVS is presenting an interesting case. This can be seen in the Forward P/E ratio, which currently stands at 7.89. Moreover, the company’s enterprise value has gone from $164.52B to $158.37B quarter-over-quarter. Obviously, the company is heading in the wrong direction, but there are still opportunities for growth in the sector.
In the last quarter, CVS made a profit of 25.1 billion. CVS Health Corporation also saw quarter revenue growth year over year of 31.86%. In addition, the company has operating cash flow of $15.99 billion.
Technical Analysis
Looking at popular technical indicators, the company’s 5-day moving average is 58.95 compared to the 50-day moving average of 59.80. So, traders might want to tread carefully if they are going to bid.
The Relative Strength Index or RSI is an indicator ranging between 0 and 100 that traders use to determine if a stock is “overbought” or “oversold.” A strong uptrend tending to reach into the “overbought” status is above 70, while a downward trend will stay around the 30 mark. CVS currently holds a 9-day RSI of 63.29%, while 100-day RSI stands at 48.55%.
Another indicator we believe is worth keeping tabs on is the Moving Average Convergence Divergence or MACD. Similar to the concept of the Force Index — on the basis of price momentum — the MACD gives traders a tool to measure the turning point of a stock even during rapid fluctuations in price. Buy and sell signals are determined by a stock’s relation to the zero line, so if a stock is above a zero line for many weeks it might be a “buy.” On the other hand, if a stock is below the zero line consistently, it might be one to stay away from. Also, if the MACD line reaches a peak and dips, its momentum may be waning. CVS’s 9-day MACD is 0.83 and the company’s 100-day MACD stands at -3.59.
Inside Moves
Another area that is important to analyze is insider moves and majority shareholders. While this is not always an error-free way to tell what the future holds for a stock, you can maybe gather important information from reading the tea leaves about who is buying and selling.
The major holders for this stock are 0.19% by insiders and 79.64% by institutions. Regarding institutional holdings, Vanguard Group, Inc. (The) owns 8.19%, while the second top holder, Blackrock Inc., currently owns 7.42%.
Over the last six months, insiders have sold 10,556 with the most recent transaction from Mayhew Jonathan E., EVP – Transformation, with a sell at price 65.00 per share.
Conclusion
Overall, the recommended rating for CVS is Moderate Buy. Currently, the company has 23 analysts watching the stock, and the average quarterly earnings estimate is 1.32. Quarterly revenue estimates are averaging 66.53B with the high estimate reaching 68.14B and the low at 65.08B.
To review, the current 1-year target estimate is sitting at 79.64, while the current price 60.17. Based on this, we expect the stock to rise considering the aforementioned fundamentals.
