Analysts remain bullish on CVS stock, with 20 of 27 brokerages having a Buy or Strong Buy rating. The rest rate it at Hold. At a share price of around $74.50, the stock’s upside potential based on a median price target of $91.95 is about 23.4%. At the high price target of $120.00, the implied upside is 61.1%. Both targets have dropped significantly in the past three months.
The consensus revenue estimate for the second quarter is $86.53 billion, up 1.5% sequentially and by 7.3% year over year. Adjusted EPS are forecast at $2.13, down 3.1% sequentially and by 11.3% year over year. For the full 2023 fiscal year, analysts are looking for EPS of $8.58, down 1.3%, and revenue of $348.82 billion, up about 8.2% year over year.
CVS stock trades at 8.7 times expected 2023 EPS, 8.4 times estimated 2024 earnings of $9.11 and 7.6 times estimated 2025 earnings of $9.86 per share. The 52-week trading range is $66.34 to $107.26. CVS Health pays an annual dividend of $2.42 (yield of 3.24%). Total shareholder return for the past 12 months was negative 19.89%.
Kraft Heinz
Shares of Kraft Heinz Co. (NASDAQ: KHC) have dropped by 2.7% over the past 12 months. For the year to date, shares are down by more than 11%. A solid dividend and payout ratio of 81% explains why more than 80% of the stock is held by institutional investors. The company raised its earnings guidance in May, citing higher prices, strong demand and lower costs. Analysts still see sequential increases in sales and net income, although smaller boosts than in either of the prior two quarters.
Of 20 brokerages covering the stock, 12 have a Hold rating and eight have a Buy or Strong Buy rating. At a share price of around $36.00, the upside potential based on a median price target of $41.00 is 13.9%. At the high price target of $53.00, the upside potential is 47.2%.
Kraft Heinz is expected to post second-quarter revenue of $6.81 billion, up 5.0% sequentially and by 4.0% year over year. Adjusted EPS are forecast at $0.76, up 11.1% sequentially and 8.6% higher year over year. For the full 2023 fiscal year, analysts are looking for EPS of $2.89, up 3.9% year over year, on revenue of $27.21 billion, up by 2.8%.
The company’s stock trades at a multiple of 12.5 times expected 2023 EPS, 12.0 times estimated 2024 earnings of $3.00 and 11.3 times estimated 2025 earnings of $3.19 per share. The 52-week range is $32.73 to $42.90. Kraft Heinz pays an annual dividend of $1.60 (yield of 4.40%). Total shareholder return for the past 12 months was 2.29%.
Originally published at 24/7 Wall St.
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