Has CVS Health Stock Turned Things Around?
Last year, shares of healthcare company CVS Health (NYSE: CVS) crashed by more than 43%. The company struggled with rising medical costs and routinely missed earnings expectations. It also got a new CEO. Investors had many reasons to remain doubtful about its future.
But recently, the company posted strong earnings numbers that actually came in better than expected. Under new leadership, CVS appears to be doing better already. Is this just a short-term surprise for investors, or could it truly be a sign that the business is in better shape? And could it lead to more of a rally in the weeks and months ahead?
Through the first two months of 2025, investors have been much more bullish on the healthcare stock than they were last year. Entering trading on Tuesday, CVS Health was up 40%, significantly better than the S&P 500's (SNPINDEX: ^GSPC) gain of just 2% over that stretch. A big catalyst was the company's latest earnings report, which came out on Feb. 12; the stock jumped 15% that day due to the results.
Source Fool.com
