If you’re staring at the CVS Health stock price today, you’re probably seeing a number that doesn't tell the whole story. As of the close on Friday, January 16, 2026, CVS was trading around $78.61. That’s a bit of a dip from where it started the day at $81.31, but honestly, focusing on a single day’s slide is how most retail investors miss the bigger picture. We’re in a weird spot with CVS right now.
It’s Sunday, January 18. The markets are closed. But the chatter isn't.
Everyone wants to know if the "integrated healthcare" gamble is finally paying off. You've got the retail pharmacies, the Aetna insurance arm, and the Caremark pharmacy benefit manager (PBM) all rubbing shoulders under one roof. It’s a lot. For a long time, the market hated this complexity. But 2026 is starting to feel like the year the gears actually start catching.
Why the Market is Acting So Moody
CVS isn't just a drugstore anymore. It's a massive, multi-headed beast. When one head gets a cold, the whole stock sneezes. Lately, the "cold" has been the insurance side—specifically Medicare Advantage.
Medical costs have been a nightmare for insurers lately. People are going to the doctor more, getting more surgeries, and basically using their insurance exactly how they're supposed to. For CVS and its Aetna subsidiary, that means higher "Medical Benefit Ratios" (MBR). Basically, they’re paying out more in claims.
In late 2025, CVS reported a massive $5.7 billion goodwill impairment charge. That sounds scary, and it resulted in a GAAP loss, but it’s mostly an accounting move related to their health services unit. Wall Street cares way more about the "Adjusted EPS," which actually beat expectations at $1.60 per share for the third quarter.
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The David Joyner Era Begins
There’s a new boss in the big chair. David Joyner officially added "Board Chair" to his CEO title on January 1, 2026. This is a big deal. Consolidation of power usually means the board has massive confidence in his turnaround plan. Joyner has been around for decades. He’s a CVS lifer who knows where the bodies are buried, especially in the PBM business.
He’s cleaning house. We’ve seen a string of leadership changes, from a new CFO, Brian Newman (who came over from UPS), to new heads of retail health. It’s like they’re trying to scrub away the sluggishness of the previous years.
CVS Health Stock Price Today: The Numbers That Actually Matter
If you’re looking to buy or sell, ignore the ticker for a second and look at the guidance. For the full year of 2026, the company is aiming for an Adjusted EPS of $7.00 to $7.20.
That’s a healthy jump from the 2025 range of $6.60 to $6.70.
- Revenue Projection: At least $400 billion. Yes, billion with a 'B'.
- Dividend Yield: Currently sitting around 3.3% to 3.4%. It’s a solid "get paid to wait" play.
- Star Ratings: This is the boring stuff that actually moves the needle. Aetna managed to get over 81% of its Medicare Advantage members into 4-star plans or higher for the 2026 season. That means more bonus money from the government.
The "Engagement as a Service" Pivot
You’re going to hear this phrase a lot in 2026. CVS is trying to turn into a tech company, sorta. They’re leaning hard into AI-native platforms to help people navigate their benefits. Think of it as an AI assistant that actually knows what your plan covers so you don't have to spend three hours on hold.
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If they can make the "Aetna + Caremark + CVS Pharmacy" combo feel seamless to the average person, they win. Right now, it still feels like three separate companies that occasionally wave at each other from across the street.
What the Analysts Aren't Telling You
The consensus on Wall Street is a "Moderate Buy" with an average price target of roughly $94.74. Some bulls, like those at UBS, have pushed their targets as high as $130.
But there’s a catch.
There is a ton of political pressure on PBMs. Both sides of the aisle in D.C. love to complain about how drug middlemen (Caremark) make money. There’s also the "Lilly Factor." Last year, Eli Lilly dropped CVS as a drug provider for its employees because CVS wouldn't cover their weight-loss drugs. That kind of friction hurts.
Also, the Medicaid landscape is shifting. States are cutting back, and that puts a lid on how much the insurance arm can grow in certain markets. It’s not all sunshine and rising charts.
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Is CVS Still Undervalued?
Most valuation models suggest CVS is trading at a discount compared to its peers like UnitedHealth. Its Price-to-Earnings (P/E) ratio looks wonky because of that massive one-time loss, but on a forward-looking basis, it's cheap.
The real question for investors is whether they believe the 2026 margin recovery is real. The company expects a "mid-teens" growth rate through 2028. If they hit those numbers, today's price in the high $70s will look like a steal. If they miss because people keep using more healthcare than expected, it could be a long, sideways slog.
Actionable Insights for Investors
If you're watching the CVS Health stock price today, keep your eye on the upcoming Q4 2025 earnings call (usually in early February). That’s where the 2026 outlook gets "real."
- Monitor the MBR: If the Medical Benefit Ratio starts creeping above 93% again, the stock will likely take a hit, regardless of how many prescriptions they fill.
- Watch the Buybacks: CVS paused share repurchases recently to focus on debt and the dividend. If they announce a new buyback program, it’s a signal they think the stock is too cheap to ignore.
- Check the Clinics: Keep an eye on Oak Street Health. CVS paid a lot of money for these senior clinics. They need to show that these clinics are actually lowering costs for Aetna members. If they aren't, the "integration" story falls apart.
At the end of the day, CVS is a giant tanker trying to turn around in a narrow canal. It's moving, but it's slow. The $78.61 price point represents a market that is still "wait and see" on David Joyner's vision. For the patient investor, the dividend makes the waiting a lot easier to stomach.
Next Steps:
To get a better handle on the valuation, you should compare CVS's forward P/E ratio against its main rival, UnitedHealth (UNH), to see the size of the "disbelief discount." Also, check your own local CVS—if the shelves are empty or the pharmacy line is out the door, that retail friction is often a leading indicator of the broader corporate health.