11 Best Performing Large Cap Stocks So Far in 2025

3. CVS Health Corporation (NYSE:CVS)

Market Capitalization: $86.599B

Number of Hedge Fund Holders: 74

Year-To-Date Performance: 54.66% 

CVS Health Corporation (NYSE:CVS) is a leading health solutions company based in the United States. It operates through several segments including the Health Care Benefits, Health Services, and Pharmacy & Consumer Wellness. It serves over 37 million people with health insurance products and operates more than 1,000 walk-in and primary care clinics.

The company recently released its first-quarter results for 2025 and its full-year guidance. CVS Health Corporation (NYSE:CVS) posted a revenue of $94.6 billion, reflecting a 7% increase year-over-year. Moreover, the operating income also grew significantly to reach $4.6 billion. The growth was driven by Health Care Benefits which grew 8% year-over-year, with medical membership stable at approximately 27.1 million. Notably, management has announced plans to exit the individual exchange business and focus on other growth areas and also introduced new solutions to improve patient care.

Looking ahead, management has raised EPS guidance for 2025 to a range of $6.00 to $6.20 from $5.75 to $6.00. Patient Capital Opportunity Equity Strategy also noted CVS Health Corporation (NYSE:CVS) in its Q1 2025 investor letter. Here’s what the fund said about the company:

Patient Capital Opportunity Equity Strategy stated the following regarding CVS Health Corporation (NYSE:CVS) in its Q1 2025 investor letter:

“CVS Health Corporation (NYSE:CVS) went from a top detractor in the fourth quarter to the top contributor in the first quarter. The company faced significant pressure last year from disappointing Medicare Advantage results—an industry-wide challenge. We felt the issues were well understood and expected improvements in pricing for 2026. We took the opportunity to add to the position. Since then, CMS (Center for Medicare & Medicaid Services) has announced 2026 rates at the high end of expectations, supporting a significant earnings power recovery. On a longer-term basis, we continue to think CVS has an attractive combination of assets owning a healthcare benefits business (Aetna), a pharmacy-benefits manager (Caremark), an in-home evaluation business (Signify Health) and in-home primary care business (Oak Street Health) supporting the industry transition to a value-based care model. With new leadership in place, a 4% dividend yield and trough earnings behind us, we see continued attractive prospects ahead.

We added to CVS Health Corp. (CVS) as it hit a decade low, believing that the problems in the Medicare Advantage business would be sorted out. So far this thesis has played out with 2026 rates showing strong improvement.”