CVS Breaks Above $78 Support as Recovery Momentum Builds
$CVS Health(CVS)$
CVS Health Corp Surged +2.23%: Healthcare Giant Breaks Above $78 Support, Recovery Momentum Building
Latest Close Data
CVS closed at $78.24 on Dec 10, gaining +2.23% (+$1.71) with strong volume of 12.60M shares.
Stock trading 8.1% below 52-week high of $85.15, showing renewed strength after recent lows.
Core Market Drivers
Healthcare sector rotation accelerated as investors seek defensive plays amid market uncertainty.
CVS benefited from positive sentiment around pharmacy benefit management reforms and Medicare Advantage stabilization expectations for 2025.
Technical Analysis
Volume surged 53% above average (Volume Ratio: 1.53), indicating institutional interest.
RSI(6) jumped to 56.07 from oversold territory, while RSI(12) improved to 51.39.
MACD remains negative at -0.27 but showing convergence signs as bearish momentum weakens.
Key Price Levels
Primary Support: $78.00 (yesterday's resistance now support)
Strong Resistance: $80.50 (today's high)
Immediate Pivot: $78.40 (critical breakout level)
Valuation Perspective
Trading at P/E TTM of 211x due to depressed earnings, but Forward P/E of 11.59x suggests earnings recovery ahead. P/S ratio of 0.25x remains attractive compared to healthcare sector average.
Analyst Targets
25 analysts maintain bullish outlook with average target of $91.70 (17% upside). Strong consensus: 6 Strong Buy, 17 Buy, 6 Hold ratings support institutional confidence in turnaround story.
Weekly Outlook
Expect consolidation between $76-$81 range with potential breakout above $80.50 targeting $85 resistance zone. Bullish momentum building if volume sustains above 10M daily average.
Risk Disclaimer
This analysis is for informational purposes only. Past performance doesn't guarantee future results. Please conduct your own research before investing.
For SG users only, Welcome to open a CBA today and enjoy access to a trading limit of up to SGD 20,000 with unlimited trading on SG, HK, and US stocks, as well as ETFs.
🎉Cash Boost Account Now Supports 35,000+ Stocks & ETFs – Greater Flexibility Now
Find out more here.
Complete your first Cash Boost Account trade with a trade amount of ≥ SGD1000* to get SGD 688 stock vouchers*! The trade can be executed using any payment type available under the Cash Boost Account: Cash, CPF, SRS, or CDP.
Other helpful links:
💰Join the TB Contra Telegram Group to Get $10 Trading Vouchers Now🎉
How to open a CBA. How to link your CDP account. Other FAQs on CBA. Cash Boost Account Website.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
