CVS shares gain the most in seven weeks on Tuesday, company plans health services expansion to 1 500 stores over the next two years

June 5, 2019 9:39 am

CVS Health Corp (CVS) intends to expand health services such as blood pressure screenings and nutrition counseling to 1 500 stores by the end of 2021, the company said on Tuesday.

CVS shares closed higher for a second consecutive trading session in New York on Tuesday. It has also been the sharpest daily surge since April 15th. The stock went up 2.30% ($1.23) to $54.62, after touching an intraday high at $55.69, or a price level not seen since May 8th ($56.12).

Shares of CVS Health Corp have retreated 16.64% so far in 2019 compared with an 11.82% gain for the benchmark index, S&P 500 (SPX).

In 2018, CVS Health’s stock went down 9.63%, thus, it again underperformed the S&P 500, which registered a 6.24% loss.

As many as 50 stores located in Houston, Atlanta, Tampa and Philadelphia are to be converted by the end of this year. That number accounts for nearly 15% of the stores in each of the markets, CVS said.

The larger part of the expansion is expected to take place in 2020 and 2021.

The new format will include a job post such as “care concierge”, assumed by a company employee with the responsibility to direct clients to health services such as a nurse practitioner or a nutritionist.

Under the new format, the company will also offer services such as screenings for sleep apnea and opthalmology issues associated with diabetes.

According to CNN Money, the 24 analysts, offering 12-month forecasts regarding CVS Health Corp’s stock price, have a median target of $68.50, with a high estimate of $95.00 and a low estimate of $55.00. The median estimate represents a 25.41% upside compared to the closing price of $54.62 on June 4th.

The same media also reported that 17 out of 27 surveyed investment analysts had rated CVS Health Corp’s stock as “Buy”, while 9 – as “Hold”.

Weekly Pivot Levels

By using the traditional method of calculation, the weekly levels of importance for CVS Health Corp (CVS) are presented as follows:

Central Pivot Point – $52.55
R1 – $53.06
R2 – $53.75
R3 – $54.26
R4 – $54.77

S1 – $51.86
S2 – $51.35
S3 – $50.66
S4 – $49.97

Where to Trade

BinaryTribune is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover Forex, Price Action, Binary Options and Social Trading.

Related