Should I Buy CVS Stock in 2026?

Data-driven analysis and honest assessment for CVS Health Corp

Analysis Updated:
CAUTIONSeveral concerns warrant careful consideration

Current Price: $80.36P/E: 211.3

Decision Score

4.6/10

Weak

Based on 6 fundamental factors

Score Breakdown:

Valuation (20%)2/10

Very high P/E of 211.3 suggests overvaluation

Growth (20%)3/10

Declining -0%

Profitability (20%)4/10

Thin margins (0% net)

Financial Health (15%)5/10

Financial health data limited

Cash Flow (15%)10/10

Excellent FCF yield of 10.1%

Insider Activity (10%)5/10

No recent insider activity

Key Investment Metrics

Current Price

$80.36

P/E Ratio

211.32

Revenue Growth

0.1%

Profit Margin

0.0%

Market Cap

$101.9B

Dividend Yield

0.03%

How CVS Compares to Competitors

Understanding how CVS stacks up against peers helps inform your investment decision.

How CVS Compares to Peers

Upcoming Events for CVS

+5 Reasons TO Buy CVS

1. High free cash flow yield of 10.1%

strong

FCF yield above 5% means substantial cash generation for dividends, buybacks, or reinvestment.

2. Large-cap stability and market leadership

moderate

With market cap over $100B, this company has established leadership and resources to weather cycles.

-5 Reasons NOT to Buy CVS

1. Expensive valuation at 211x earnings

high risk

P/E of 211 is significantly above averages. High expectations leave little room for disappointment.

2. Thin profit margins of 0.0%

high risk

Low margins provide little cushion against cost increases or pricing pressure.

3. Low gross margins of 13%

medium risk

Margins below 30% indicate commodity-like pricing and input cost vulnerability.

4. Minimal revenue growth

low risk

Growth of 0.1% barely keeps pace with inflation.

Who Should Buy CVS?

Investment Profile

Risk Level

High

Recommended Holding Period

3-5 years

Best For:

  • Momentum Traders

    High-growth profile attracts momentum

Not Suitable For:

  • Growth Investors

    Limited 0% growth may disappoint

  • Value Investors

    Premium P/E of 211 doesn't fit value criteria

  • Income-Focused Retirees

    Low 0.0% yield

  • Risk-Averse Investors

    High risk may cause uncomfortable volatility

Consider These Alternatives

If you're interested in CVS, compare these Healthcare peers:

Pro tip: Compare CVS directly with competitors using our comparison tool to see which stock better fits your criteria.

Get the Full Picture

Access AI-powered insights, DCF valuations, insider trading data, and real-time analysis for CVS

Frequently Asked Questions

What is CVS stock price today?

CVS (CVS Health Corp) stock is trading at $80.36 as of the latest market data. Stock prices update in real-time during market hours (9:30 AM - 4:00 PM ET).

Is CVS stock going up or down today?

CVS stock price movements are influenced by market conditions, news, earnings reports, and investor sentiment. Check our live dashboard for real-time price changes and technical indicators.

Should I buy CVS stock now?

The decision to buy CVS depends on your investment strategy, risk tolerance, and financial goals. Our AI analysis evaluates fundamentals, valuation metrics, growth prospects, and market conditions to help inform your decision.

Is CVS a buy, hold, or sell right now?

Our AI-powered analysis provides buy/hold/sell recommendations for CVS based on multiple factors including valuation, growth metrics, technical indicators, and analyst consensus. Visit our dashboard for the latest recommendation.

Is CVS stock overvalued or undervalued?

CVS currently trades at a P/E ratio of 211.32, which may indicate premium valuation. Our DCF calculator provides intrinsic value estimates to help determine if CVS is fairly priced.

What is CVS's P/E ratio?

CVS has a price-to-earnings (P/E) ratio of 211.32, which measures how much investors are willing to pay per dollar of earnings. Compare this to industry peers and historical averages for context.

What is CVS's market cap?

CVS (CVS Health Corp) has a market capitalization of $101.94 billion, making it a mid-cap stock.

What is CVS's price to book ratio?

CVS trades at a price-to-book (P/B) ratio of 1.40, which compares the stock price to the company's book value per share. A P/B below 1.0 may indicate undervaluation, while above 3.0 may suggest premium pricing.

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Disclaimer

This analysis is for informational purposes only and should not be considered financial advice. The decision score and recommendations are based on quantitative factors and do not account for all risks, your personal financial situation, or qualitative factors. Always do your own research and consider consulting with a financial advisor before making investment decisions.