CVS Health Corporation (CVS) Hit a 52 Week High, Can the Run Continue?

Shares of CVS Health (CVS) have been strong performers lately, with the stock up 17.1% over the past month. The stock hit a new 52-week high of $73.23 in the previous session. CVS Health has gained 63% since the start of the year compared to the -2.3% gain for the Zacks Medical sector and the 0.7% return for the Zacks Medical Services industry.

What's Driving the Outperformance?

The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on July 31, 2025, CVS Health reported EPS of $1.81 versus consensus estimate of $1.47 while it beat the consensus revenue estimate by 5.54%.

For the current fiscal year, CVS Health is expected to post earnings of $6.32 per share on $390.17 in revenues. This represents a 16.61% change in EPS on a 4.66% change in revenues. For the next fiscal year, the company is expected to earn $7.14 per share on $408.98 in revenues. This represents a year-over-year change of 12.94% and 4.82%, respectively.

Valuation Metrics

CVS Health may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.

On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.

CVS Health has a Value Score of A. The stock's Growth and Momentum Scores are C and F, respectively, giving the company a VGM Score of B.

In terms of its value breakdown, the stock currently trades at 11.6X current fiscal year EPS estimates, which is not in-line with the peer industry average of 17.7X. On a trailing cash flow basis, the stock currently trades at 8.1X versus its peer group's average of 10.5X. Additionally, the stock has a PEG ratio of 0.81. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making CVS Health an interesting choice for value investors.

Zacks Rank

We also need to look at the Zacks Rank for the stock, as this is even more important than the company's VGM Score. Fortunately, CVS Health currently has a Zacks Rank of #2 (Buy) thanks to a solid earnings estimate revision trend.

Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if CVS Health fits the bill. Thus, it seems as though CVS Health shares could still be poised for more gains ahead.

How Does CVS Stack Up to the Competition?

Shares of CVS have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Progyny, Inc. (PGNY). PGNY has a Zacks Rank of #2 (Buy) and a Value Score of B, a Growth Score of A, and a Momentum Score of B.

Earnings were strong last quarter. Progyny, Inc. beat our consensus estimate by 9.09%, and for the current fiscal year, PGNY is expected to post earnings of $1.72 per share on revenue of $1.26 billion.

Shares of Progyny, Inc. have gained 5.3% over the past month, and currently trade at a forward P/E of 13.78X and a P/CF of 68.59X.

The Medical Services industry may rank in the bottom 64% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for CVS and PGNY, even beyond their own solid fundamental situation.

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This article originally published on Zacks Investment Research (zacks.com).

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