Should You Buy CVS Health Stock Before May 6?

CVS Health (NYSE: CVS) has taken its shareholders connected a tumultuous thrust implicit the past 5 years. While the banal is up astir 7% during that clip frame, determination were times erstwhile it was looking arsenic if the pharmacy retailer was successful a dire situation, with its financials not looking each that large and superior question marks hovering astir its maturation prospects.

For the astir part, CVS Health has calmed capitalist fears, arsenic the banal has been rallying since past year. A large crushed for that is that its caller net numbers person been better. And connected May 6, the institution volition spell implicit and merchandise its first-quarter numbers for 2026. Should you bargain the healthcare banal earlier then?

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There's been a batch of antagonistic attraction connected CVS successful caller years due to the fact that its fiscal show hasn't been strong. Rising costs person been weighing connected its operations, and the institution has failed to conscionable expert expectations. That has, astatine times, led to important banal losses aft earnings, arsenic shown successful the illustration below.

There person been immoderate large spikes and crashes pursuing net successful caller years, and that has made the banal a spot of a volatile concern to ain of late.

Recently, however, the institution received immoderate affirmative quality astir Medicare Advantage rates, which volition beryllium going up higher than expected successful 2027, and that whitethorn effect successful a much encouraging outlook for the business. If the institution releases beardown fiscal guidance, that could beryllium what the banal needs to rally higher.

Based connected expert projections, CVS Health inactive looks reasonably cheap, trading astatine conscionable 11 times its estimated aboriginal earnings. That's with analysts apt factoring successful a just spot of bearishness into the business, fixed persistently precocious costs successful the manufacture of late. Going up against immoderate brushed expectations could summation the likelihood that the upcoming net study won't beryllium overmuch worse than analysts expect, and it whitethorn adjacent beryllium better.

At a humble valuation, CVS banal could beryllium an charismatic bargain close now. As a bonus, it besides offers a precocious output of 3.4% (the S&P 500 average is lone 1.2%). While the banal whitethorn stay volatile successful the abbreviated term, if you're consenting to beryllium diligent and clasp connected for the agelong haul, it could beryllium a large concern to bent connected to, fixed its comparatively debased terms and imaginable for dividend income.