Is CVS Health (CVS) the Hottest Large-Cap Stock So Far in 2025?

CVS Health Corporation (CVS), the largest player in the pharmacy services and retail drugstore industry, has been making waves in the market so far in 2025. With a market capitalization of $65.59 billion and an enterprise value of $137.92 billion, CVS Health is a formidable large-cap stock that investors cannot afford to ignore. But is it the hottest large-cap stock so far in 2025? Let's delve into the data to find out.



Market Performance

CVS Health stock price has been on a rollercoaster ride in the past year, with a 52-week low of $30.58 and a high of $60.04. As of January 16, 2025, the stock price is $42.08, down 29.7% from its 52-week high. However, the stock has rebounded from its December low, gaining 10% in the past month.



Financial Health

CVS Health's financial health is robust, with a strong balance sheet and consistent earnings growth. The company has a current ratio of 0.80 and a debt-to-equity ratio of 1.10, indicating a solid financial position. In 2023, CVS Health's revenue grew by 10.88% year over year, and earnings increased by 93.55%. The company's trailing PE ratio is 13.18, and its forward PE ratio is 9.07, suggesting that the stock may be undervalued.



Dividend Yield and Payout Ratio

CVS Health offers an attractive dividend yield of 5.10% and a payout ratio of 67.26%, indicating that the company is committed to returning a substantial portion of its earnings to shareholders. The company's dividend has grown by 7.26% year over year, demonstrating a consistent and growing payout.

Analyst Ratings and Price Targets

Analysts have a positive outlook on CVS Health, with an average price target of $69.25, representing a 32.87% increase from the current price. The consensus rating is "Buy," indicating that analysts expect the stock to perform well in the coming months.



Conclusion

While CVS Health has had a volatile year, its strong financial performance, attractive dividend yield, and positive analyst ratings suggest that it is a solid investment opportunity. Although the stock may not be the hottest large-cap stock so far in 2025, its potential for growth and strong fundamentals make it an attractive choice for investors looking for a stable and growing large-cap stock in the healthcare sector. As always, it's essential to conduct thorough research and consider your investment goals and risk tolerance before making any investment decisions.