Why CVS Stock Thrashed the Market on Thursday
For the second day in a row, CVS Health's (NYSE: CVS) stock price saw a satisfying jump on Thursday. It closed the day almost 5% higher, on the back of both lingering optimism and news of another in a series of analyst price target raises. That improvement was markedly better than the performance of the S&P 500 (SNPINDEX: ^GSPC) on the day; it gained slightly over 1%.The positive investor sentiment on CVS is due to the pharmacy chain operator's fourth-quarter earnings report, which were published early Wednesday morning. The company squeaked past the consensus analyst estimate for revenue, and crushed that for non-GAAP (generally accepted accounting principles) adjusted net income. Following that, a clutch of analysts wasted little time in raising their price targets on CVS stock -- in one case, even upgrading their recommendation.Continue reading
For the second day in a row, CVS Health's (NYSE: CVS) stock price saw a satisfying jump on Thursday. It closed the day almost 5% higher, on the back of both lingering optimism and news of another in a series of analyst price target raises. That improvement was markedly better than the performance of the S&P 500 (SNPINDEX: ^GSPC) on the day; it gained slightly over 1%.
The positive investor sentiment on CVS is due to the pharmacy chain operator's fourth-quarter earnings report, which were published early Wednesday morning. The company squeaked past the consensus analyst estimate for revenue, and crushed that for non-GAAP (generally accepted accounting principles) adjusted net income.
Following that, a clutch of analysts wasted little time in raising their price targets on CVS stock -- in one case, even upgrading their recommendation.
