For the second day in a row, CVS Health's (NYSE: CVS) stock price saw a satisfying jump on Thursday. It closed the day almost 5% higher, on the back of both lingering optimism and news of another in a series of analyst price target raises. That improvement was markedly better than the performance of the S&P 500 (SNPINDEX: ^GSPC) on the day; it gained slightly over 1%.
One upgrade and a wave of price target increases
The positive investor sentiment on CVS is due to the pharmacy chain operator's fourth-quarter earnings report, which were published early Wednesday morning. The company squeaked past the consensus analyst estimate for revenue, and crushed that for non-GAAP (generally accepted accounting principles) adjusted net income.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »
Following that, a clutch of analysts wasted little time in raising their price targets on CVS stock -- in one case, even upgrading their recommendation.
This was Leerink Partners' Michael Cherny, who now feels the shares are worthy of an outperform (read: buy) rating; previously he had recommended the company only as market perform (hold). According to reports, he felt that the company's important units -- particularly its Aetna insurance business -- are improving notably, and the stock is now undervalued.
It's buy time, according to some pundits
Cherny's peers weren't as willing to modify their recommendations, yet a handful of them raised their price targets. One of the more aggressive bumps was made by David MacDonald of Truist Securities, who now believes CVS is worth $76 per share, well up from his preceding level of $60. MacDonald reiterated his buy recommendation.
Don’t miss this second chance at a potentially lucrative opportunity
Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.
On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:
- Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $340,048!*
- Apple: if you invested $1,000 when we doubled down in 2008, you’d have $44,908!*
- Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $554,019!*
Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another chance like this anytime soon.
*Stock Advisor returns as of February 3, 2025
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Truist Financial. The Motley Fool recommends CVS Health. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
