---
title: "CVS Health Stock Is Beating the Market in 2026. Here's Why Wall Street Thinks It Can Soar Another 22%."
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/296686804.md"
description: "CVS Health stock has surged over 18% year-to-date, outperforming the S&P 500. Analysts project a further 22% rise to a consensus target of $114.59, driven by strong earnings beats and improved profitability in its Aetna healthcare benefits segment. With 16 of 17 analysts rating it a buy, positive trends in medical benefit ratios and guidance hikes support bullish sentiment despite some PBM challenges."
datetime: "2026-08-22T18:51:45.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/296686804.md)
  - [en](https://longbridge.com/en/news/296686804.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/296686804.md)
generator: "portal-rs"
---

# CVS Health Stock Is Beating the Market in 2026. Here's Why Wall Street Thinks It Can Soar Another 22%.

One of the hotter stocks in big healthcare just now is pharmacy chain mainstay **CVS Health** (CVS -0.67%). The company's shares have raced more than 18% higher year to date, comparing favorably to the benchmark **S&P 500** index's sub-13% rise.

And, according to most analysts tracking the stock, the stock's not done yet. According to data compiled by TipRanks, the consensus pundit price target is $114.59 per share, which is 22% above its most recent closing level.

Let's open the doors of this busy pharmacy to determine how it got here, and whether it can indeed continue to move higher. 

![Person checking medicine on a shelf in a pharmacy.](https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84ODQwNzgvcGVyc29uLWNoZWNraW5nLW1lZGljaW5lLW9uLWEtc2hlbGYtaW4tYS1waGFybWFjeS5qcGcmdz0zODQw?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg)

Image source: Getty Images.

## Beating analysts' earning estimates

Any company that delivers two estimates-crushing quarters in a row is going to be a juicy buy candidate for investors. In all three of the quarterly earnings reports that CVS published this calendar year, it topped consensus analyst estimates for revenue and profitability. Investors are more impressed by the latter, naturally, so the company looked particularly good with its convincing beats in both the first and second frames.

First-quarter net income not under generally accepted accounting principles (non-GAAP, or adjusted) came in at $2.57 per share against the analyst consensus of $2.21. The gap for the following reporting period was much wider, at $2.58 and $1.83, respectively. Better -- since stocks trade on future potential instead of trailing performance -- CVS raised both its top- and bottom-line guidance in each of those two quarters.

What's going right for CVS? A major factor is its healthcare benefits segment, anchored by giant insurer Aetna, which saw a sharp drop in its medical benefit ratio (MBR) in the first quarter. The MBR is a key metric in the health insurance field, as it measures the percentage of collected premiums that are paid out for claims (so a lower figure is better for CVS). 

The company's fourth quarter of 2025 MBR was 94.8%, then swooned to 84.6% before increasing modestly to 87.4% in the two subsequent periods. Keeping more premium money positively affected profitability: Adjusted operating income for healthcare benefits rose 52% year over year in the first quarter to over $3 billion, and 85% in the second quarter to $2.4 billion. 

Expand

![CVS Health Stock Quote](https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vYXJ0L2NvbXBhbnlsb2dvcy9tYXJrL0NWUy5wbmcmdz0xMjg?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg)

## NYSE: CVS

CVS Health

Today's Change

(-0.67%) $-0.63

Current Price

$93.02

### Key Data Points

Market Cap

$119BMarket cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary.

Day's Range

$92.35 - $94.39

52wk Range

$69.51 - $110.68

Volume

5.6M

Avg Vol

8M

Gross Margin

14.16%

Dividend Yield

2.86%

## Big bunch of buy recommendations

In the analyst pen, the bulls are running wild for CVS. The TipRanks page on the company shows that 16 of the 17 prognosticators it tracks rate the stock a buy. One CVS optimist is **UBS**' Kevin Caliendo, who raised his price target (to $126 per share from $122) and maintained a buy recommendation after that second-quarter report. 

While he acknowledged that the company was facing challenges, including operational missteps at its CVS Caremark pharmacy benefits manager (PBM), he was bullish about the vast improvements in healthcare benefits. He also noted that, in his estimation, the prospects for CVS' pharmacy and consumer wellness segment -- its retail business -- are growing.

Though 22% might sound like an ambitious price-target growth forecast for the stock of a large, sprawling, and well-established company, CVS' insurance operations are going gangbusters, and the company is selling into an American population that's getting proportionally older (and therefore requiring more of what it sells). Personally, I think CVS stock could rise past that level.

### Related Stocks

- [CVS.US](https://longbridge.com/en/quote/CVS.US.md)
- [.SPX.US](https://longbridge.com/en/quote/.SPX.US.md)
- [UBS.US](https://longbridge.com/en/quote/UBS.US.md)

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> **Disclaimer: This article is for reference only and does not constitute any investment advice.**