CVS Health (NYSE:CVS) is a leading pharmaceutical retailer that also has a significant health insurance business through Aetna. It’s a highly diversified healthcare company that can give investors some excellent exposure to the sector.
Earlier this year, it reached highs of more than $110. But it’s been trading considerably lower of late. Could this top healthcare stock be a great buy while it’s trading well below $100?
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The company is having a much better year in 2026
When CVS last reported earnings in August, it generated some solid numbers, with revenue rising by more than 7%, totaling $106.1 billion. In addition, it also raised its forecast for the year, projecting that its diluted earnings per share (EPS) will be between $6.84 and $7.04 (its previous forecast was $6.24 to $6.44). That’s a substantial improvement from 2025, when its diluted EPS was just $1.39, as goodwill impairment charges weighed on its results. And the year before that, EPS was higher at $3.66, but restructuring charges affected its numbers back then.
Now, with seemingly less noise in its financial statements and more growth, CVS Health looks poised to deliver much stronger financials this year. Its latest earnings numbers are set to come out next week, on Nov. 4.
Unsurprisingly, amid the more improved numbers, shares of CVS Health are up around 17% this year, which is a far better performance than the S&P 500, as the broad index has risen at a more modest rate of 12% thus far in 2026.
Why CVS Health stock could still rise higher
CVS has been performing well this year, but the stock itself isn’t expensive. It’s currently trading at a forward price-to-earnings multiple of 11, which is based on analyst expectations. That’s far lower than the S&P 500 average of 19. Not only could it get back to over $100 in the near future, but it could also soar past that level given its improved results and modest valuation.
In addition, the stock also yields 2.9%, as it can provide investors with some excellent recurring income.
For investors seeking a top healthcare stock to own to diversify their portfolios with, or just wanting an above-average dividend stock that they won’t have to worry about, CVS can be an excellent option to consider. The business looks solid, and given the growth it’s been generating, the stock looks incredibly well priced, making it a terrific buy right now.
