CVS Health (CVS) Strengthens Market Position Amid Analyst Confidence and Industry Shifts

CVS Health Corporation (NYSE:CVS) is one of the best cheapest stocks to buy on Robinhood. On March 13, TD Cowen analyst Charles Rhyee reaffirmed a Buy rating and a $105 price target on CVS Health Corporation (NYSE:CVS). This came after TD Cowen’s proprietary consumer pharmacy survey.

CVS Health (CVS) Strengthens Market Position Amid Analyst Confidence and Industry Shifts

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The survey polled 2,251 US consumers on their retail pharmacy preferences and found that CVS remains the most preferred pharmacy among respondents. CVS has above-market customer loyalty levels, the survey results showed. An above-market customer loyalty level indicates that the company’s retail business is holding up well despite a competitive and challenging industry backdrop.

Rhyee also noted that CVS stands to gain market share from competitor store closures. This is a nod to the ongoing reduction in pharmacy locations across rival chains. As a result, CVS has an organic growth opportunity it doesn’t need to spend to capture, said Rhyee.

Beyond the survey, Rhyee highlighted two near-term catalysts. The first is the final Medicare Advantage rates expected from the Centers for Medicare & Medicaid Services (CMS), which directly affect profitability at CVS’s Aetna health insurance arm. The analyst sees the Pharmacy & Consumer Wellness segment as another growth lever.

Also, Rhyee views CVS’s segment-level guidance as conservative. In other words, the analyst believes that the company may outperform its own forecasts. This view is backed by Q4 FY2025 results where CVS reported EPS of $1.09, beating the $1.00 estimate, on revenue of $105.7 billion, which was above the $103.63 billion consensus.

CVS Health Corporation (NYSE:CVS) operates retail pharmacies, pharmacy benefit management, and healthcare services through its CVS Pharmacy stores, Caremark division, and Aetna insurance arm. Its offerings include prescription drugs, over-the-counter medications, health insurance plans, and primary care services.

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