The USD 56.31 support area, currently tested, might facilitate a technical rebound. The company’s fundamentals could validate this scenario.
According to Surperformance rating, the company is an opportunity for a trading strategy. Indeed, it is a good compromise between its value and its visibility. Indeed, the group seems undervalued relatively to its peers with a EV/Sales of 0.62.
Technically, in daily data, even if moving averages are still in a downtrend, a positive reaction in the USD 56.3 area should stop this trend and allow a technical rebound towards USD 58.4 resistance. Moreover, technical indicators show a significant oversold condition which strengthens this bullish scenario.
So as to make the most of a potential technical rebound of CVS Caremark Corporation, it seems opportune to take a long position at the current price. The first target price is the USD 58.4 resistance, and by extension the USD 62.1. Investors should not insist under USD 56.31 and are better off placing a stop loss order under this threshold.
CVS Health Corporation is one of the leading American suppliers of health products and services. Net sales (including intragroup) break down by activity as follows:
- medical insurance plan management services (45.6%; Pharmacy Benefit Management): administrative management (reimbursement management, patient claim processing, etc.), drug distribution, decision-making information, sales of medical information management services, etc.;
- retail distribution (28.5%): sale of prescription pharmaceutical products, OTC products, beauty and cosmetics products. At the end of 2023, products are marketed primarily via a network of more than 9,000 outlets and via the Internet. In addition, the group offers healthcare services through more than 1,000 clinics (MinuteClinic®);
- medical benefits management (25.8%);
- other (0.1%).
CVS HEALTH CORPORATION 
