Headquartered in Woonsocket, Rhode Island, CVS Health Corporation (CVS), with a market cap of $82 billion, provides health solutions in the United States. The company operates through Health Care Benefits, Health Services, and Pharmacy & Consumer Wellness segments and provides traditional, voluntary, and consumer-directed health insurance products and related services, and more.

Shares of the healthcare titan have lagged behind the broader market over the past year. CVS stock has declined 1.5% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 10.6%. However, CVS has shown remarkable momentum in 2025, surging 48.6% compared to SPX's 5.3% decline on a YTD basis.

Zooming in, CVS’ stock has outperformed the iShares U.S. Healthcare Providers ETF (IHF), which has declined 3% over the past year but surged 4.8% on a YTD basis.

CVS’ relative outperformance stems from its diversified business model as a vertically integrated healthcare organization. The company’s subsidiary, Optum Health, added 650,000 new value-based care patients in the recent quarter, indicating robust customer growth and brighter future prospects.

Shares of CVS Health climbed 15% on Feb. 12 after the company beat Q4 2024 expectations and issued better-than-expected 2025 guidance. CVS reported $97.7 billion in revenue and adjusted EPS of $1.19, above the estimates, driven by strong performance in the Pharmacy & Consumer Wellness segment.

For the current fiscal year, ending in December 2025, analysts project CVS’ EPS to grow 8.9% annually to $5.90 on a diluted basis. The company has a good track record of outperforming expectations, having surpassed the consensus estimate in three of the last four quarters.

Among the 23 analysts covering CVS stock, the consensus rating is a “Strong Buy.” That’s based on 17 “Strong Buy” ratings, two “Moderate Buys,” and four “Holds.”

This configuration is more bullish than three months ago, when 15 analysts gave the stock a “Strong Buy.”

On Apr. 15, Baird raised CVS’ price target to $71 from $51 while maintaining an “Hold” rating. Baird expects limited stock buying in the managed care and healthcare facilities sector until policy uncertainties are resolved. The firm also anticipates companies will avoid raising 2025 guidance, maintaining a cautious outlook due to potential Part D and broader macroeconomic challenges.

The mean price target of $75.41 represents a 13% premium to CVS’ current price levels. The Street-high price target of $90 suggests an upside potential of 34.9%.