Taking a Fresh Look at CVS Health Corporation (CVS)

CVS Health Corporation (CVS) is an interesting player in the Healthcare space, with a focus on Health Care Plans. The stock has been active on the tape, currently trading at $71.48, up from yesterday’s close by 0.69%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

This company has been competing with others in the Healthcare space and offers its own combination of interesting factors CVS Health Corporation (CVS) currently trades with a market capitalization of $72.62 Billion. That value represents a market adjusting for revenues that have been growing by 3.51 % on a quarterly year/year basis as of the company’s last quarterly report.

The balance sheet health of any company plays a key role in its ability to meet its obligations and maintain the faith of its investment base. For CVS, the company currently has $2.49 Billion of cash on the books, which is offset by $2.4 Billion current liabilities. You can get a sense of how sustainable that is by a levered free cash flow of $8.24 Billion over the past twelve months. Generally speaking, earnings are expected to fall in coming quarters. Analysts are forecasting earnings of $1.9 on a per share basis this quarter. Perhaps, that suggests something about why 84.77% of the outstanding share supply is held by institutional investors.

Technical Analysis

We’ve taken a serious look at this stock from a fundamental perspective, but the tale of the tape may offer more hints about what lies under the surface. Looking at the stock’s movement on the chart, CVS Health Corporation recorded a 52-week high of $84.72. It is now trading 13.24% off that level. The stock is trading $76.26 its 50-day moving average by 4.78%. The stock carved out a 52-week low down at $66.45.

In recent action, CVS Health Corporation (CVS) has made a move of -1.33% over the past month, which has come on weak relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 19.32, and it’s gotten there by action that has been less volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 2.46% with $1.01 Billion sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of CVS.

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