CVS Health posted better-than-expected fourth-quarter earnings
CVS Health Corp (NYSE:CVS) stock is on the rise today, after better-than-expected fourth-quarter earnings of $2.12 per share and despite the healthcare giant's disappointing 2024 forecast. The company lowered its guidance as medical procedures among older patients increased, fueling costs in the insurance business.
At last glance, CVS was up 2.5% at $75.63, earlier as high as $77.40 at this morning's peak. The stock is breaking above its 20-day moving average today, though its 320-day trendline appears to be keeping a cap on gains.
Over in the options pits, 24,000 calls and 13,000 puts have been exchanged, volume that is four times the amount typically seen at this point. The weekly 2/9 74-strike call is the most popular, with new positions being sold to open there.
Analysts have yet to chime in today, though possibly because the majority are already bullish. Of the 21 in coverage, 16 carry a "buy" or better rating on CVS Health stock, with just five a tepid "hold," while the 12-month consensus price target of $89.04 is a 17.8% premium to current levels.