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Home.forex news reportCVS Health Corporation (CVS) Under Pressure From Medicare Proposal, Argus Holds Positive...

CVS Health Corporation (CVS) Under Pressure From Medicare Proposal, Argus Holds Positive View

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CVS Health Corporation (NYSE:CVS) is included among

12 Unstoppable Dividend Stocks to Buy According to Analysts.

JPMorgan Names CVS a Top Pick as Turnaround Gains Traction
JPMorgan Names CVS a Top Pick as Turnaround Gains Traction

On January 28, Argus trimmed its price recommendation on CVS Health Corporation (NYSE:CVS) to $90 from $91. However, the firm maintained a Buy rating on the stock. The shares fell nearly 15% after the Centers for Medicare and Medicaid Services proposed keeping Medicare Advantage reimbursement rates flat for 2027 compared with 2026. Argus said that the proposal is likely to be revised higher before the final decision in April 2026. The analyst also noted that even if the final increase comes in below last year’s 5.1% hike, CVS’s diversified business should help cushion the impact better than companies that rely solely on health insurance.

On February 5, CVS announced changes to its preferred drug lists that will take effect on April 1. The company said it will replace certain bone disease treatments from Amgen and Eli Lilly with lower-cost alternatives. Through its pharmacy benefit management unit, Caremark, CVS plans to add biosimilar versions of Amgen’s Prolia, including Ospomyv from its Cordavis unit and Celltrion’s Stoboclo. It will also include generic alternatives to Lilly’s Forteo, such as Bonsity and Tymlos, across major national commercial formularies.

CVS said the changes are expected to cut prescription costs by more than 50% compared with branded drugs. The company added that its biosimilar formulary strategy has already generated $1.5 billion in gross savings for customers and their members.

CVS Health Corporation (NYSE:CVS) operates as a health solutions company with businesses spanning health insurance, pharmacy services, retail pharmacy operations, and related healthcare offerings.

While we acknowledge the potential of CVS as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 15 Best Wide Moat Dividend Stocks to Invest in and 13 Best Long Term Low Risk Stocks to Buy Now

Disclosure: None.



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