CVS Health Corporation (CVS)

CVS Health stock forecast: buy or sell

CVS Health stock outlook

  • CVS Health closed on Friday at $64.96 after inching a 1.31%.
  • Looking at the chart, price is drawing an scaled downtrend since early June with lower tops and lower bottoms. shares price lost a -7.32% since the downtrend started.
  • CVS Health released its financial report on Wednesday
  • Credit Suisse Group published a bullish rating for CVS Health on Friday, targeting $90.00
  • CVS Health Corporation provides health services and plans in the United States.
No ad for you

Please read:
The comments written in this post are personal and not recommendations for you to buy or sell stocks. The author of this paper does not know the particular circumstances of the reader, his or her financial statements or his or her own best interests at any given time. All users should speak with their financial advisor before buying or selling any securities Comments are provided for educative purposes only

CVS Health stock chart overview

Should I buy CVS Health stock?

All successful traders recommend adhering to a trading strategy and not make decisions based on subjective opinions, rumors or feelings. 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?

Currently, CVS Health stock doesn't match any of these trading strategies, so our recommendation is not to buy now. This doesn't mean CVS will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems

No ad for you

Should I sell CVS Health stock?

When you own stock shares with some profit, it's really difficult to decide the best moment to sell and get your profits. Similarly to when we have to buy shares, choosing when is appropiate to sell is not a whimsical decision, and we must adhere our own trading strategy. When selling, as well as buying, detailed setups are very easy to follow and are only valid for selling shares you already own, not for selling short CVS Health stock

A guiding principle is that you must never hold a trade that yields greater losses than those expected upon the buy. When to sell shares always has to be dictated by the stop-loss (automatic or manual)

Is it time to sell CVS Health stock?

In the current situation of CVS Health there is not any eligible sell setup, so CVS Health stock holders with operations in green can keep their positions

No ad for you

Analysts' recommendations to buy or sell CVS Health stock

Brokerage firms and financial institutions post stock ratings based on their views of the market and the fundamental and technical situation of the analyzed stock. Unfortunately, the accuracy of these predictions is not very high, and certainly not a direct buy or sell signal

In the last 30 days, 3 analyst ratings were published for CVS Health. General sentiment is bullish, with 2 out of 3 posting optimistic forecasts

No ad for you

CVS Health ratings

Brokerage firmRating
Aug 6th, 2020
Deutsche Bank Strong buy
Aug 6th, 2020
SVB Leerink
Aug 7th, 2020
Credit Suisse Group Buy

Technical analysis

CVS Health accumulates a price drop of -7.32% since its latest top early June at $70.09. The stock plotted 2 consecutive lower tops

SMAs overview

Moving averages are indicators for traders to gauge stock momentum. A moving average is calculated as the simple mean of the previous N periods (usually sessions). Usual time periods used for moving averages are 21 days, 50 days, 100 days and 200 days. You can found more about Moving Averages from sources like Wikipedia and Investopedia

Supports and resistances

Investors use supports and resistances as a way to identify price points in the stock price action that may act as barriers, containing the price of an asset to move in certain direction. A support level is a level where the price tends to find support as it falls. Price is more likely to "bounce off" this level rather than break through it. Nevertheless, if the price breaks down this level, it will probably continue descending until finding another support level. On the other hand, resistances are where the price tends to find opposition as it moves up. In the same way, the price is more liable to "bounce off" at this level, and if it finally ruptures this level, the price will rise easily until it hits the next resistance

The current resistances are:

  • R1: $65.37 (0.63% above)
  • R2: $65.53 (0.88% above)
  • R3: $65.57 (0.94% above)
  • The current supports are:

  • S1: $64.61 (-0.54% below)
  • S2: $64.50 (-0.71% below)
  • S3: $64.33 (-0.97% below)
  • Bollinger bands

    The so-called Bollinger bands are a widespread technique designed by John Bollinger. By essence, the Bollinger Bands are bands that fluctuate around a moving average, ranging the distance from the bottom to the top depending on market volatility. They are usually drawn by an interval of two standard deviations, above and below, from a moving average line. Bollinger himself recommends the moving average period to be 20

    The evolution of the Bollinger Bands on the chart shows that they are pretty narrow (4.42%), which clearly indicates that price volatility is low. Reduced volatility is often the antecedent to a sudden movement (up or down), so we must be alert and manage our buy or sell orders correctly

    Relative strength index

    The RSI (Relative Strength Index) is an oscillator-type indicator that track price action to reveal when the share or financial asset is oversold or overbought. Like other oscillation indicators, the RSI fluctuates in a range between 0% and 100%. The relative strength indicator is one of the best known and most widely used indicators, invented by J. Welles Wilder in 1978

    The RSI dropped below the overbought level of 70 in early June after just crossing to the overbough zone for just one day (weak signal). The RSI reading on Friday was 55.77. CVS Health price collapsed a 7.29% since RSI lost the overbought zone

    No ad for you

    Earnings and financials

    2nd-quarter investors call was hosted by CVS Health on Wednesday after presenting the earnings report. CVS Health topped market estimates and posted a per-share earnings of %s of $2.64, that is a 36.79% better than expected versus the previous forecasts of $1.93. Reported revenues were $65.2 billion versus estimates of $64.1 billion.

    This compares to earnings of $1.89 per share same quarter last year, so posted EPS is an increase of 39.68%. Looking at revenue, figures slightly changed compared to $63.1B same quarter last year.

    CVS Health is hosting the earnings call next November. Forecasted EPS for this quarter is $1.50. Financial reporting day has a more than usual risk for stock investors as the results published can jump up or down the price with exceptionally low volume and not respecting your buy or stop-loss orders. It's always good to review company's website to confirm time and details about the earnings call and the earnings report.

    No ad for you