CVS Health Corp (CVS · NYSE)

CVS Health has strung together four consecutive earnings beats, most recently reporting $2.58 versus a $1.87 estimate, and swung from a $3.98B net loss in the September 2025 quarter to $3.00B in net income on $106.10B of revenue in the June 2026 quarter. Trailing revenue sits at $412.64B, up 7.1% year over year, with earnings up 188.8%, though margins remain thin at 3.9% operating and 1.2% net, and leverage is elevated at 4.6x debt/EBITDA on $76.31B of total debt. The stock has nonetheless fallen 18.6% over three months and 9.0% over the past month to $86.16, trading below its 20-, 50-, and 200-day moving averages, while the analyst target of $115.76 and a Wall Street Zen upgrade to strong-buy contrast with lingering concerns around Medicare Advantage star ratings and 340B pricing. Free cash flow of $5.65B in the June quarter against a $110.20B market cap and a PEG of 0.211 frame the valuation debate.