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# CVS Health: One Good Quarter Is Not Enough; Retain Sell (Archive)
- URL: https://www.huntingalphas.com/cvs-health-one-good-quarter-is-not-enough-retain-sell-archive/
- Published: 2025-02-18T17:34:00.000Z
- Updated: 2026-02-28T14:42:39.000Z
- Description: CVS' rally masks persistent insurance margin pressures, rich valuation, and rising leverage risks.
- Author: Vish (Hunting Alphas)
- Tags: 5-Minute Pitches, #noindex, Archive, #sa-origin, CVS, Healthcare

*This 5-Minute Pitch was originally published on Seeking Alpha before the launch of the Hunting Alphas website. It is shared here to showcase my previous work and track record. New 5-Minute Pitches published on this site will not be disseminated anywhere else.*

## Elevator Pitch

- Despite a recent 45% rally, I maintain a 'Sell' view on CVS due to its underwhelming execution record and rising leverage levels.
- CVS' Q4 results showed a surprising EBIT margin beat, but continued margin erosion in its insurance business remains a concern.
- Improved margin performance in FY25 is possible with better insurance policy terms and reduced loss-making membership counts but given a poor execution record, it is better to wait for evidence.
- Transparent pricing via the CostVantage pricing model may boost volumes in the pharmacy business in FY25.
- Valuations vs comps are at a lower than usual discount and technical analysis suggests a likely bull trap. Leverage levels are also climbing. All this warrants caution.

Read the full article [here](https://seekingalpha.com/article/4759268-cvs-health-one-good-quarter-is-not-enough-retain-sell?ref=huntingalphas.com).

#### Disclosures and Disclaimers

**Past performance ≠ future results. Not investment advice. See* [**full Disclaimer*](https://www.huntingalphas.com/disclaimer/)**.*