A Look at CVS Health’s Valuation After Closing 16 Oak Street Health Centers Due to Elevated Costs

Simply Wall St.10-28

CVS Health (CVS) is making some changes to its Oak Street Health portfolio by closing 16 senior-focused primary care centers. The company pointed to elevated medical costs as the reason and emphasized...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2578398175?lang=en_US&edition=fundamental","thumbnail":"https://images.simplywall.st/asset/company-cover/93625-main-header/1756253484610","is_english":true,"pubTime":"2025-10-28 13:24","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2578398175","market":"nz","top_or_hot":-1,"title":"A Look at CVS Health’s Valuation After Closing 16 Oak Street Health Centers Due to Elevated Costs","media":"Simply Wall St.","content":"<div>\n<p>CVS Health (CVS) is making some changes to its Oak Street Health portfolio by closing 16 senior-focused primary care centers. The company pointed to elevated medical costs as the reason and emphasized...</p>\n\n<a href=\"https://simplywall.st/stocks/us/healthcare/nyse-cvs/cvs-health/news/a-look-at-cvs-healths-valuation-after-closing-16-oak-street\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>A Look at CVS Health’s Valuation After Closing 16 Oak Street Health Centers Due to Elevated Costs</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nA Look at CVS Health’s Valuation After Closing 16 Oak Street Health Centers Due to Elevated Costs\n</h2>\n\n<h4 class=\"meta\">\n\n\n2025-10-28 13:24 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/us/healthcare/nyse-cvs/cvs-health/news/a-look-at-cvs-healths-valuation-after-closing-16-oak-street><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>CVS Health (CVS) is making some changes to its Oak Street Health portfolio by closing 16 senior-focused primary care centers. The company pointed to elevated medical costs as the reason and emphasized...</p>\n\n<a href=\"https://simplywall.st/stocks/us/healthcare/nyse-cvs/cvs-health/news/a-look-at-cvs-healths-valuation-after-closing-16-oak-street\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU1699723380.USD","symbol_name":"ALLSPRING GLOBAL LONG/SHORT EQUITY \"AP\" (USD) ACC","start_time":0,"source_url":"https://simplywall.st/stocks/us/healthcare/nyse-cvs/cvs-health/news/a-look-at-cvs-healths-valuation-after-closing-16-oak-street","article_id":"2578398175","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/company-cover/93625-main-header/1756253484610"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/us/healthcare/nyse-cvs/cvs-health/news/a-look-at-cvs-healths-valuation-after-closing-16-oak-street","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2578398175","pubTimestamp":1761629064,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"CVS Health (CVS) is making some changes to its Oak Street Health portfolio by closing 16 senior-focused primary care centers. The company pointed to elevated medical costs as the reason and emphasized continued support for value-based care.\nSee our latest analysis for CVS Health.\nWhile the news of Oak Street Health center closures has grabbed headlines, CVS Health’s share price tells a story of impressive resilience and renewed momentum. Following a 37% gain over the past 90 days and a...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU1699723380.USD":"ALLSPRING GLOBAL LONG/SHORT EQUITY \"AP\" (USD) ACC","LU0006061336.USD":"Blackrock US Small and MidCap Opportunities A2 USD","BK4581":"高盛持仓","IE00B19Z3581.USD":"Legg Mason ClearBridge - Value A Acc USD","CVS.AU":"Cervantes Corp Ltd","OSH":"Oak Street Health","BK4585":"ETF&股票定投概念","LU0208291251.USD":"FRANKLIN MUTUAL U.S. VALUE \"A\" (USD) INC","LU0070302665.USD":"FRANKLIN MUTUAL U.S. VALUE \"A\" (USD) ACC","IE00B19Z3B42.SGD":"Legg Mason ClearBridge - Value A Acc SGD","IE00B7SZLL34.SGD":"Legg Mason ClearBridge - Value A Acc SGD-H","LU0432979614.USD":"JPM GLOBAL HEALTHCARE \"A\" ACC","LU0162691827.USD":"BGF US BASIC VALUE \"A4\" INC","BK4196":"保健护理服务","IE00BSNM7G36.USD":"NEUBERGER BERMAN SYSTEMATIC GLOBAL SUSTAINABLE VALUE \"A\" (USD) ACC","LU1983299246.USD":"SCHRODER ISF HEALTHCARE INNOVATION \"A\" (USD) ACC","IE0002270589.USD":"LEGG MASON CLEARBRIDGE VALUE \"A\" (USD) INC","LU0072461881.USD":"BGF US BASIC VALUE \"A2\" ACC","BK4504":"桥水持仓","IE00BKVL7J92.USD":"Legg Mason ClearBridge - US Equity Sustainability Leaders A Acc USD","IE00BZ1G4Q59.USD":"LEGG MASON CLEARBRIDGE US EQUITY SUSTAINABILITY LEADER \"A\"(USD) INC (A)","LU0320765489.SGD":"FTIF - Franklin Mutual US Value A Acc SGD","BK4550":"红杉资本持仓","BK4588":"碎股","LU0211331839.USD":"FRANKLIN MUTUAL GLB DISCOVERY \"A\" (USD) ACC","LU1571399168.USD":"ALLSPRING GLOBAL LONG/SHORT EQUITY \"IP\" (USD) ACC","LU1059921491.USD":"NORDEA 1 GLOBAL STABLE EQUITY \"HB\" (USDHDG) ACC","CVS":"西维斯健康","LU0061475181.USD":"THREADNEEDLE (LUX) AMERICAN \"AU\" (USD) ACC"},"translate_title":"CVS Health因成本上升而关闭16家橡树街健康中心后的估值一览","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"CVS":1.5,"OSH":1.5,"CVS.AU":1},"content_text":"CVS Health (CVS) is making some changes to its Oak Street Health portfolio by closing 16 senior-focused primary care centers. The company pointed to elevated medical costs as the reason and emphasized continued support for value-based care. See our latest analysis for CVS Health. While the news of Oak Street Health center closures has grabbed headlines, CVS Health’s share price tells a story of impressive resilience and renewed momentum. Following a 37% gain over the past 90 days and a remarkable 86% share price return year-to-date, the company’s long-term total shareholder return stands at nearly 50% for the past year, even as broader industry pressures have weighed on rivals. If this renewed momentum in healthcare piques your interest, consider exploring a broader universe of companies in the sector with our See the full list for free. With shares climbing and optimism running high, the key question for investors remains: Is CVS Health undervalued at these levels, or has the market already priced in its future growth trajectory? AdvertisementMost Popular Narrative: 4% Undervalued Following a solid rally, CVS Health’s most widely tracked narrative fair value sits at $86.20 per share, a notch above its last close of $82.45. This narrow gap highlights growing optimism, but puts the spotlight on exactly what financial and strategic assumptions are driving this premium.  Integration of recent and ongoing acquisitions (such as Aetna, Oak Street, and Signify Health), as well as vertical alignment between insurance, pharmacy, and care delivery, provide substantial cross-selling and synergy opportunities. These factors support long-term operating margin and earnings growth as margin recovery initiatives gain traction.  Read the complete narrative. Want to know the hidden formula behind CVS Health’s premium value? The narrative pivots on critical assumptions blending future earnings expansion with strategic business transformation. Unpack the bold forecasts and find out which levers could surprise investors in the years ahead. Result: Fair Value of $86.20 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, persistent margin pressure in key segments and ongoing reimbursement challenges could easily disrupt this optimistic trajectory for CVS Health’s earnings growth. Find out about the key risks to this CVS Health narrative.  Build Your Own CVS Health Narrative If you want to take a different perspective or independently review the numbers, it only takes a few minutes to craft your own narrative using real data, so why not Do it your way A great starting point for your CVS Health research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision. Looking for More Investment Ideas? Don't let opportunity pass you by. Put your portfolio ahead of the curve by targeting companies highlighted in our most powerful screeners. Start building your next big move today:  Reimagine your passive income future by targeting reliable payers through these 19 dividend stocks with yields > 3% with yields above 3 percent. Seize edge-of-innovation trends by tapping into these 27 AI penny stocks that are applying artificial intelligence across industries for real growth potential. Secure value in today’s market climate by acting on these 874 undervalued stocks based on cash flows that may outshine as the cycle shifts in their favor.   This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.New: AI Stock Screener & AlertsOur new AI Stock Screener scans the market every day to uncover opportunities.• Dividend Powerhouses (3%+ Yield)• Undervalued Small Caps with Insider Buying• High growth Tech and AI CompaniesOr build your own from over 50 metrics.Explore Now for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"-1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":false,"code":"91000000","status":"200"},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.35.12","shortVersion":"4.35.12","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2578398175","isCrawlerRequest":true}