New Lifetime High For CVS Health (CVS)

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.

Trade-Ideas LLC identified CVS Health ( CVS) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified CVS Health as such a stock due to the following factors:

  • CVS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $434.0 million.
  • CVS has traded 86,874 shares today.
  • CVS is trading at a new lifetime high.

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More details on CVS:

CVS Health Corporation, together with its subsidiaries, provides integrated pharmacy health care services in the United States. The company operates through Pharmacy Services and Retail Pharmacy segments. The stock currently has a dividend yield of 1.3%. CVS has a PE ratio of 26. Currently there are 17 analysts that rate CVS Health a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for CVS Health has been 4.2 million shares per day over the past 30 days. CVS Health has a market cap of $119.0 billion and is part of the health care sector and health services industry. The stock has a beta of 1.21 and a short float of 0.8% with 2.24 days to cover. Shares are up 10.2% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates CVS Health as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, increase in net income, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. We feel its strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 5.0%. Since the same quarter one year prior, revenues rose by 11.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • CVS HEALTH CORP has improved earnings per share by 12.6% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, CVS HEALTH CORP increased its bottom line by earning $3.96 versus $3.75 in the prior year. This year, the market expects an improvement in earnings ($5.17 versus $3.96).
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Food & Staples Retailing industry average. The net income increased by 8.1% when compared to the same quarter one year prior, going from $1,129.00 million to $1,221.00 million.
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 35.80% over the past year, a rise that has exceeded that of the S&P 500 Index. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
  • The current debt-to-equity ratio, 0.35, is low and is below the industry average, implying that there has been successful management of debt levels. Despite the fact that CVS's debt-to-equity ratio is low, the quick ratio, which is currently 0.60, displays a potential problem in covering short-term cash needs.

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