A Look At CVS Health (CVS) Valuation As Turnaround And Dividend Story Gains Investor Attention

Simply Wall St.01-17

AdvertisementWhy CVS Health Stock Is Back in Focus After Its Latest Dividend Decision CVS Health (CVS) is drawing fresh attention after its board approved a quarterly dividend of $0.665 per share, ...

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Valuation As Turnaround And Dividend Story Gains Investor Attention\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-01-17 12:29 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/us/healthcare/nyse-cvs/cvs-health/news/a-look-at-cvs-health-cvs-valuation-as-turnaround-and-dividen><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>AdvertisementWhy CVS Health Stock Is Back in Focus After Its Latest Dividend Decision CVS Health (CVS) is drawing fresh attention after its board approved a quarterly dividend of $0.665 per share, ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/healthcare/nyse-cvs/cvs-health/news/a-look-at-cvs-health-cvs-valuation-as-turnaround-and-dividen\">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":"BK4550","symbol_name":"红杉资本持仓","start_time":0,"source_url":"https://simplywall.st/stocks/us/healthcare/nyse-cvs/cvs-health/news/a-look-at-cvs-health-cvs-valuation-as-turnaround-and-dividen","article_id":"2604098945","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-health-cvs-valuation-as-turnaround-and-dividen","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2604098945","pubTimestamp":1768624168,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"Why CVS Health Stock Is Back in Focus After Its Latest Dividend Decision\nCVS Health (CVS) is drawing fresh attention 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DISCOVERY \"A\" (USD) ACC"},"translate_title":"随着扭亏为盈和股息故事引起投资者关注，CVS Health(CVS)估值一览","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"CVS":1.5,"CVS.AU":1.5},"content_text":"AdvertisementWhy CVS Health Stock Is Back in Focus After Its Latest Dividend Decision CVS Health (CVS) is drawing fresh attention after its board approved a quarterly dividend of $0.665 per share, payable on February 2, 2026, to shareholders of record on January 22. This latest dividend affirmation comes as investors weigh the company’s broad health solutions model, recent commentary around Medicare Advantage exposure, and expectations heading into the upcoming fourth quarter 2025 earnings release. See our latest analysis for CVS Health. At a share price of US$78.60, CVS has seen a 1-day share price return decline of 3.39% and a 7-day share price return decline of 2.12%. Its 1-year total shareholder return of 55.76% suggests earlier optimism around its Medicare Advantage positioning, vertically integrated model, and recent decisions such as expanded PrEP coverage and ongoing store consolidation, while current moves hint that momentum has cooled in the short term. If CVS’s mix of insurance coverage decisions and retail reshaping has your attention, it could be a good moment to scan other large US healthcare names through healthcare stocks and compare how they stack up. With CVS trading at US$78.60, sitting on a 56% 1 year total shareholder return and identified as discounted relative to some analyst targets, it is reasonable to ask whether there is still value available or whether the market is already pricing in future growth. Most Popular Narrative: 24.4% Undervalued According to yiannisz, the narrative fair value of US$104.01 sits well above CVS Health's last close at US$78.60, framing the latest dividend against a wider turnaround story. By both absolute and relative bases, CVS is undervalued and, therefore, an attractive investment, most especially for value investors who would be more patient and wait for the company to solve its temporary problems. The discount of the stock versus its sector peers and estimate of intrinsic value point toward a strong upside potential, assuming that CVS delivers on its cost-cutting initiatives and effectively integrates recent healthcare acquisitions. Read the complete narrative. Curious how a low P/E, double digit Health Care Benefits growth, and a specific earnings path combine into that fair value? The narrative spells out the playbook. The narrative uses a discount rate of 6.86% to bring CVS Health's future cash flows and earnings back to today, then compares that output with the current share price. It leans on assumptions around earnings growth, revenue expansion in health benefits, and profitability normalisation to bridge the gap between current sentiment and the US$104.01 fair value estimate. Result: Fair Value of $104.01 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, you still need to watch for risks such as higher medical costs pressuring margins or slower than expected progress on the US$2b restructuring and integration efforts. Find out about the key risks to this CVS Health narrative.  Build Your Own CVS Health Narrative If you see the story differently or want to stress test every assumption yourself, you can rebuild the case from the ground up in minutes with Do it your way. A great starting point for your CVS Health research is our analysis highlighting 4 key rewards and 4 important warning signs that could impact your investment decision. Ready For Your Next Investment Idea? If you stop at CVS, you might miss other opportunities that fit your style even better. Use the screener to widen your opportunity set confidently.  Spot potential bargains early by scanning these 863 undervalued stocks based on cash flows that currently trade below what their cash flows suggest. Ride major tech shifts by hunting for growth stories among these 24 AI penny stocks that are tied to artificial intelligence themes. Boost your income focus by reviewing these 12 dividend stocks with yields > 3% that offer higher yields and may complement a dividend-centered approach.   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. 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