CVS Health Corp’s quarterly revenue and earnings, reported on Tuesday, topped Wall Street estimates, supported by strong prescription drug sales.
CVS shares closed higher for a second consecutive trading session in New York on Tuesday. It has also been the sharpest daily surge since December 20th 2011. The stock went up 5.71% ($4.21) to $77.90, after touching an intraday high at $78.08, or a price level not seen since October 10th ($80.53).
Shares of CVS Health Corp have risen 7.45% so far in 2018 compared with a 3.06% gain for the benchmark index, S&P 500 (SPX).
In 2017, CVS Healths stock went down 8.12%, thus, it underperformed the S&P 500, which registered a 19.42% return.
The pharmacy chains net revenue surged 2.4% year-on-year to $47.27 billion during the quarter ended on September 30th. In comparison, analysts on average had expected revenue of $47.18 billion.
The companys pharmacy same-store sales rose 8.7% year-on-year during the third quarter, which exceeded the median forecast by analysts pointing to a 7.7% growth. Strong performance at CVS Healths drug stores was in part offset by reimbursement pressure and new generic drugs, the company said.
CVS Healths net income attributable to shareholders went up to $1.39 billion ($1.36 per share) during the quarter ended on September 30th, from $1.29 billion ($1.26 per share) in the year-ago period.
Meanwhile, earnings per share, excluding special items, were reported at $1.73 during the third quarter, which outstripped the median analyst estimate pointing to adjusted earnings of $1.71 per share.
According to CNN Money, the 22 analysts, offering 12-month forecasts regarding CVS Health Corp’s stock price, have a median target of $90.00, with a high estimate of $106.00 and a low estimate of $70.00. The median estimate represents a 15.53% upside compared to the closing price of $77.90 on November 6th.
The same media also reported that 18 out of 23 surveyed investment analysts had rated CVS Health Corp’s stock as “Buy”, while 5 – as “Hold”.
Weekly Pivot Levels
By using the traditional method of calculation, the weekly levels of importance for CVS Health Corp (CVS) are presented as follows:
Central Pivot Point – $72.49
R1 – $75.51
R2 – $77.92
R3 – $80.94
R4 – $83.95
S1 – $70.08
S2 – $67.06
S3 – $64.65
S4 – $62.23
TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover 
