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Should You Buy, Hold or Sell CVS Stock Amid Consumer Wellness Growth?
The consumer health and wellness market has favorable growth prospects driven by the shift from reactive treatment to preventive care, self-care and proactive management of health. This shift has created a market opportunity, including a health and wellness market which is expected to witness a compound annual growth rate of 6.31% over 2026-2031 (according to Mordor Intelligence).
The market is benefiting from growing adoption of digital health platforms, home testing and artificial intelligence (AI) enabled health tools. Another key growth driver is the expanding role of retail pharmacies in healthcare delivery. Deloitte highlights that pharmacies are increasingly leveraging health data, digital tools and pharmacist expertise to provide more accessible and personalized care.
For CVS Health CVS, these industry trends create a favorable demand backdrop across CVSCVS-- Pharmacy, MinuteClinic and its broader consumer health platform.
CVS’ Shares Outperform Peers
CVS’ shares have gained 32.9% over the past year. During the same period, shares of key peers UnitedHealth Group UNH have risen 13% and Cigna Group CI have declined 8%.
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Strong Growth of CVS’ Pharmacy & Consumer Wellness Arm
The company’s Pharmacy continues to benefit from higher prescription volumes and better underlying pharmacy economics. In the second quarter of 2026, Pharmacy & Consumer Wellness adjusted operating income increased 10.2% year over year to $1.48 billion. Same-store prescription volume rose 7%, supported by higher utilization and incremental prescriptions from the Rite Aid prescription file acquisitions.
Prescriptions filled increased 4.3% on a 30-day equivalent basis, while the segment’s gross margin improved to 19.3% from 17.9% a year earlier. These trends helped offset regulatory-related price reductions, generic drug introductions and continued reimbursement pressure. The company raised its 2026 adjusted operating income outlook for the segment by $220 million to at least $6.4 billion and expects pharmacy performance to remain favorable through the rest of 2026.
CVS is also expanding access to GLP-1 therapies through its pharmacy network, MinuteClinic services and cash-pay options, which could support additional prescription volume and customer engagement. CostVantage remains an important part of the longer-term strategy by moving pharmacy reimbursement toward a more transparent, cost-based model.
Integration of AI
CVS Health continues to build a technology platform intended to simplify navigation, claims and consumer engagement across its businesses. In July 2026, CVS began the targeted launch of Health100, including Haio, its AI-powered health assistant, with broader access planned later in the year. Aetna also launched the second generation of Claims Assist Manager, an AI-enabled claims advisor that management expects to reduce processing time by more than 20% for complex claims requiring manual review.
CVS is also deploying agentic AI across secure Aetna and Caremark call-center interactions. These initiatives build on Aetna Care Paths, digital member onboarding and other AI-enabled programs already operating across CVS HealthCVS--. The company is also using technology to improve provider connectivity and data sharing in Health Care Delivery, including AI and analytics that can analyze more than one billion pages of clinical records. Continued deployment across multiple businesses gives CVS a path to lower friction, improve service and support its long-term integrated care strategy and create a more consistent consumer experience across channels.
Discounted Valuation
With a forward five-year price-to-sales (P/S) of 0.29X, CVS’ shares are trading at a discount compared with the industry average of 0.53X. It has a Value Score of A at present.
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Recent Headwinds Limiting CVS’ Growth
CVS Health remains exposed to reimbursement changes across its government, retail pharmacy and PBM businesses. The 2027 Medicare Advantage payment update also remains insufficient, in management’s view, to fully offset underlying medical cost trends.
Also, regulatory and contracting changes are increasing uncertainty around CVS Caremark’s earnings model. The company is challenging pharmacy ownership laws in Arkansas and Tennessee, reflecting continued state-level scrutiny of vertically integrated PBM and pharmacy models.
Estimates for CVS Heading North
The Zacks Consensus Estimate for CVS’ 2026 sales and EPS implies a year-over-year improvement of 3.8% and 18.1%, respectively. The bottom-line estimates have shown mostly upward movement in the past 30 days.
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Our Take
CVS Health is benefiting from strong demand in the consumer health and wellness market. Its Pharmacy & Consumer Wellness business is growing, while AI investments could improve efficiency and customer service. However, reimbursement pressure and regulatory scrutiny remain key risks.
Given the valuation trend, estimates and stock price, we advise investors who already hold this Zacks Rank #3 (Hold) stock to maintain their positions, while prospective investors may consider waiting for a more favorable entry point. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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CVS Health Corporation (CVS): Free Stock Analysis Report
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Cigna Group (CI): Free Stock Analysis Report
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