CVS stock: buy or sell
Updated on:
Jan 18th, 2021
2
CVS stock brief
- CVS closed last Friday at $76.26 after rising a 1.61%.
- On January 8 broke out above its latest top at $74.64
- CVS Health Corporation provides health services and plans in the United States.
Should I buy CVS stock?
Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best
Is $CVS stock a buy?
In the current situation of CVS there is just one buy setup eligible:
Uptrend buy setup
CVS stock continues to trend higher since last October and marked an amazing 37.75% gain. Price marked a local bottom in this uptrend at $67.06 in mid-December, and since then it bounced off a 13.72%. Price just broke out above the buy point at $74.64, but it can be traded. If price goes above $78.37, it would be better to wait to another pullback. If you decide to enter this trade, the suggested stop loss is at $67.18
| Buy setup | Buy point | Stop loss | Risk |
| Uptrend buy setup | $74.64 | $67.18 | 10.00% |
Should I sell CVS stock?
"To sell or not to sell", if you are holding CVS stock?. Much like when we have to buy shares, choosing when is appropiate time to sell is not a fickle decision, and we must use our own trading style. When selling, as well as buying, detailed setups are very simple to use but are only applicable for selling shares in your porfolio, not for selling short $CVS stock
A golden rule is that you should never hold a trading operation that produces greater losses than those expected by the time of purchase. The moment to sell your stock always has to be dictated by the stop-loss (automatic or manual)
Is it time to sell CVS stock?
Currently, CVS stock doesn't match any of our preferred sell setups, so if you hold CVS stock and your operation is in profit probably is not time to sell now
CVS ratings
In the last 30 days, just one analyst rating was published for CVS
| Brokerage firm | Rating |
|---|---|
| Jan 8th, 2021 | |
| Jefferies Financial Group | Neutral → |
CVS stock analysis
Since last October, CVS has been printing an uptrend that so far marked a gorgeous 37.75%. During this uptrend, the price provided some buy points on the breakouts. Latest low was in mid-December, when price bounced at $67.06. On January 8, CVS broke out above its last top ($74.64) offering a good entry point
SMAs overview
Supports and resistances
The current resistance levels are:
The current supports are:
Bollinger bands
Since the price surpassed the upper band last Tuesday, the price corrected downwards by 1.26%. The price is trading near to the upper Bollinger band, poiting some level of overbought in recent sessions. This is not a sell point, as price can trade in these levels for many days and weeks
Relative strength index
Broke through the 70 level last Friday, marking a value of 70.31. Breaking through above the overvalued zone is not a bearish signal, as shares can be in the overbought zone for many weeks and may continue to rise
CVS stock price history
CVS IPO was on Feb 21st, 1973 priced at $0.61 per share1. Since then, CVS stock surged by 12,401.64%, with an average of 263.86% per year. An investment of $1,000USD at that time would be valued $125,016.39 today.
1: Adjusted price after possible price splits or reverse-splits
Price target for CVS stock
Nobody knows how much a stock will be priced in the future. Banks and financial organisations publish their analysis predicting how a stock will performance in the future.
The following table shows the price target published by analysts in the last 30 days. Again, these forecasts are not direct recommendations for small investors and must not be followed blindly.
There is just one price target available for CVS that forecasts a price of $90.00.
| Brokerage firm | Price target |
|---|---|
| Jan 8th, 2021 | |
| Jefferies Financial Group | $90.00 |
Earnings and financials
CVS ($CVS) had the quarterly financial event and posted the report last November. CVS reported earnings of $1.66 per share on sales of $67.1 billion. The Wall St estimate was $1.33 per share on revenue of $66.6 billion.
This compares to Earnings of $1.84 per share same quarter last year, so reported EPS is a decrease of -9.78%. Turnover merely changed on an annualized basis in the , from $645.5B to $668.5B last quarter.CVS ($CVS) is posting earnings report mid next February. Estimated for this quarter is $1.23, compared to $1.66 that was reported for Q3.
CVS performance
| Company | 1m | 3m | 6m |
|---|---|---|---|
| CVS ($CVS) | 10.30% | 29.50% | 18.60% |
Important note:
The thoughts contained in this article are personal and should not be followed as recommendations for you to buy or sell stocks. The author of this text does not have any knowledge of the particular positions of the reader, his or her finances or what is in his or her best interest at any given time. All users should speak with their financial advisor before buying or selling any securities Opinions are published for general educational reasons onlyCVS summary
| Friday, January 15th, 2021 | |
|---|---|
| Open | $75.02 |
| Close | $76.26 |
| Day range | $74.85 - $76.45 |
| Previous close | $75.05 |
| Session gain | 1.61% |
| Average true range | $2.25 |
| 50d mov avg | $69.74 |
| 100d mov avg | $64.15 |
| 200d mov avg | $63.32 |
| Earnings date | February 10th, 2021 |