6 Green Days In A Row: CVS Health Stock Is Up 12%
CVS Health (CVS) stock is on a 6-day winning streak, up 12.3% since the run began. That added about $12.6 billion to the company’s market value, which now stands at about $115.1 billion. The stock closed at $89.79 on Thursday, November 12, 17.7% below its 52-week high of $109.14 and 31.0% above its low of $68.55.
How The Streak Stacks Up Against The S&P 500
Returns for CVS and the S&P 500 over the streak and the periods around it, all ending Thursday, November 12 and including dividends:
| Return Period | CVS | S&P 500 |
|---|---|---|
| 1 Day | 0.3% | -0.3% |
| 6 Days (Current Streak) | 12.3% | -1.2% |
| 1 Month (21 Trading Days) | 0.0% | -1.6% |
| 3 Months (63 Trading Days) | -6.9% | -2.2% |
| Year To Date | 16.6% | 12.0% |
| 1 Year (252 Trading Days) | 15.9% | 12.2% |
Is This Move About CVS Health Or The Market?
The market explains little of this: the S&P 500 lost 1.2% over the same 6 sessions, including dividends, against CVS Health’s +12.3%. 2 other S&P 500 stocks are currently on winning streaks of 6 days or longer. Over the past three months the stock is down 6.9%, a window that includes the streak; over the other 57 sessions of that window it was down 17.1%.
What The Numbers Say About The Rally
On the fundamentals, revenue grew 6.7% over the last twelve months, against a median of 7.9% for S&P 500 Health Care stocks; its operating margin is 3.6%, versus a median of 17.4%; and the stock trades at 10.4 times trailing earnings against a median of 31.4. The read is mixed: a multiple below the median on one side, revenue growth below the median and margins below the median on the other.
A climb like this is worth respecting, and worth testing. Our Guidance Momentum screen tracks the stocks whose companies just raised their own forward numbers.
For anyone who would rather back the theme than one company, a U.S. healthcare providers ETF like IHF holds the whole group, not just this stock. It is still a concentrated bet on one theme, which is the gap the portfolio below is built to close.
One Hot Stock Is A Story. Thirty Sound Ones Are A Strategy
A streak like this earns a place on your watchlist, and it also earns a question: how much of your outcome do you want depending on one company keeping this up?
The Trefis High Quality (HQ) Portfolio answers it with breadth: roughly 30 businesses picked for consistent cash generation, strong margins, and balance-sheet strength, sized and rebalanced by rules. It has a track record of outpacing a benchmark that combines the S&P 500, the S&P MidCap 400, and the Russell 2000. Follow the story; invest in the strategy.