Score 9.2 (out of 10): CVS HEALTH CORP sets up for +11.1% rally in 2 months

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What’s Going On Here?

Similar to yesterday’s ADM insight, CVS is making a new high while the overall market is weak. Normally, this is seen as a very constructive price action. CVS has raised 2021 forecast estimates. The insurance coverage for at-home Covid tests may lift US drugstore sales further. The health-care company expects full year 2021 earnings to be in a range of $5.87 to $5.92 per share, up from previous expectations of $5.50 to $5.61 per share.

Why Now?

CVS HEALTH CORP has reached a new shorter-term high. Previously, during similar occasions, CVS HEALTH CORP shares had a median return of +11.1%, over the following 2 months – based on 2 historical occasions with 2 of those showing positive returns (100% hit ratio). This buy signal for CVS HEALTH CORP received a high score of 9.2 (out of 10). This insight was generated on 2022-January-27 with last price of 106.79.

What’s This Company About?

CVS HEALTH CORP is in the Pharmacy Services business. Based on the last 2 years’ risk/return profile, this asset is seen as Less Risky. Ticker symbol: CVS US.

What’s My Risk / Reward and Time Horizon?

We found 2 months to be the optimal trade horizon, after testing a number of possible alternatives (accuracy of previous returns). Otherwise consider closing out this trade once the target level of 118.69 (+11.1%) has been reached. Based on CVS HEALTH CORP’s recent up and down swings, LongShortBets suggests considering to set a stop loss level for this insight at 104.29 (last price at 106.79), which is equivalent to a -2.3% decline.

Historical Chart:

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Summary:

NameCVS HEALTH CORP
ViewUp
Star (1 to 10)9.2
Target+11.1%
Time2 months
Hit Rate100%

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