JPMorgan Names CVS a Top Pick as Turnaround Gains Traction

CVS Health Corporation (NYSE:CVS) is included among the 20 Best Performing Dividend Stocks in 2025.

The stock dropped 43% in 2024, then swung the other way with an 80.5% gain this year. Even after that run, Wall Street still sees room to move. The average analyst price target points to another 19% upside.Earlier in December, JPMorgan named CVS Health Corporation (NYSE:CVS) as a top pick in health care services. “We remain positive on CVS post-Investor Day and heading into 2026, with the company providing raised/better than expected 2025/2026 guidance while laying out expectations for adj EPS growth at a mid-teens CAGR through 2028,” the bank wrote.

“We were also encouraged to hear CVS frame a return to normalized Caremark growth in 2027, highlighting the progress in moving clients to an acquisition-based model and see a healthy runway for growth with management providing opportunities to outperform.” Analyst Lisa Gill set a $101 price target, which sits about 26% above where CVS shares closed on December 29. That target reflects confidence that recent operational changes are starting to show through in results.

Last year, CVS Health Corporation (NYSE:CVS) outlined a plan to deliver at least $2 billion in cost savings over several years. The effort included store closures and workforce reductions. Those steps appear to be gaining traction. Financial performance has improved this year, and momentum carried into the third quarter. Revenue in the quarter reached a company record of $102.9 billion. That figure topped expectations and marked a 7.8% increase from the third quarter of 2024.

CVS Health Corporation (NYSE:CVS) operates as a healthcare innovation company with a broad footprint. Its assets span retail pharmacies and clinics, prescription benefits management, and infusion services, giving it multiple levers for growth as execution improves.

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