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CVS Health

CVS Health offers a diverse set of healthcare services. Its roots are in its retail pharmacy operations, where it operates over 9,000 stores primarily in the us. CVS is also a large pharmacy benefit manager (acquired through Caremark), processing about 2 billion adjusted claims annually. It also operates a top-tier health insurer (acquired through Aetna) where it serves about 26 million medical members. The company's recent acquisition of Oak Street adds primary care services to the mix, which could have significant synergies with all its existing business lines.

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RIVN

Aquí tienes cinco acciones estadounidenses que podrían llamar la atención de los inversores este miércoles: MCK, WIX, DIS, RIVN y CVS.

5 acciones en el foco este miércoles: MCK, WIX, DIS, RIVN y CVS

CVS Health Corp

Morgan Stanley ETF Trust Calvert Ultra-Short Investment Grade ETF

CARDIOVASCULAR SCI INC by Cardiovascular Sciences, Inc.

Morgan Stanley ETF Trust Calvert US Select Equity ETF

CVS Group PLC

CIVITAS SOCIAL HSG PLC by CIVITAS SOCIAL HSG PLC

CV Sciences Inc

COVISTA COMMUNS INC by Covista Communications, Inc,

Covista Communications Inc

CONVERGENCE SYS INC CL A by Convergence Systems Inc.

Convergence Systems Inc

CVS HEALTH ORD

As CVS Health Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVS#NYSE">CVS</a>) prepares to announce its third-quarter earnings Wednesday morning, investors are keenly aware of the challenges and adjustments the company <a href="https://www.benzinga.com/news/earnings/24/08/40220306/cvs-health-reports-mixed-q2-earnings-lowers-2024-outlook-reshuffles-segment-management">has faced in recent months</a>. 
Following a mixed performance in its <a href="https://www.benzinga.com/quote/CVS/earnings">second-quarter results</a>, which included a significant reduction in annual profit guidance, CVS's stock has experienced volatility, reflecting market concerns about its future prospects.
Read Also: <a href="https://www.benzinga.com/trading-ideas/technicals/24/11/41714263/nxp-semiconductors-prepares-for-earnings-with-new-ai-tools-but-what-do-the-charts-reveal">NXP Semiconductors Prepares For Earnings With New AI Tools: But What Do The Charts Reveal?</a>
What To Know: In the second quarter, CVS Health reported: 
<ul>
<li>Revenues of $91.23 billion, falling short of the consensus estimate of $91.51 billion. T</li>
<li>Total revenues grew by 2.6% — fueled by the Health Care Benefits and Pharmacy &amp; Consumer Wellness segments.</li>
<li>Adjusted earnings per share (EPS) of $1.83 also represented a decrease from $2.21 in the previous year, although it did surpass the consensus forecast of $1.73. The decline in EPS stems from operational pressures in the Health Care Benefits segment, exacerbated by unfavorable Medicare Advantage star ratings impacting the 2024 payment year.</li>
<li>Adjusted operating income reflected a more significant downturn, decreasing by 16.4% to $3.74 billion. This decline highlighted the ongoing challenges CVS is facing, particularly in managing costs and improving operational efficiency.</li>
<li>The company&#8217;s Health Services segment reported a troubling 8.8% decrease in revenues to $42.17 billion, largely due to an 18.3% drop in pharmacy claims processed. This downturn raises questions about CVS&#8217;s ability to compete in an increasingly digital landscape, where online pharmacy services are becoming more prevalent.</li>
</ul>
What Else: In response to these challenges, CVS announced immediate leadership changes, with CEO Karen Lynch taking direct control of the Health Care Benefits segment, while CFO Tom Cowhey will oversee daily operations alongside her. Such moves signal CVS&#8217;s commitment to reorienting its strategy in light of recent performance.
Guidance for the upcoming quarter and beyond has been notably conservative. CVS has revised its adjusted EPS forecast down to between $6.40 and $6.65, significantly lower than the previous estimate of at least $7.00 and below the consensus of $6.98. 
Additionally, the company adjusted its full-year 2024 cash flow from operations guidance to approximately $9.0 billion, down from an earlier estimate of at least $10.5 billion. This revision reflects ongoing pressures in the Health Care Benefits segment, prompting concerns about future profitability. Read Also: <a href="https://www.benzinga.com/markets/cryptocurrency/24/11/41715442/trump-media-stock-volatile-on-election-eve-as-polls-betting-markets-predict-tight-white-ho">Trump Media Stock Volatile On Election Eve As Polls, Betting Markets Predict Tight White House Race</a>
The Big Picture: For the full year, CVS forecasts revenues between $369 billion and $372 billion, slightly above the consensus of $368.876 billion, while the adjusted operating income is now expected to fall between $13.75 billion and $14.15 billion, a reduction from previous guidance of at least $14.75 billion.
Furthermore, the anticipated medical benefits ratio has been adjusted to a range of 90.6% to 90.8%, up from the earlier expectation of approximately 89.8%.
As CVS Health approaches its third-quarter earnings announcement, market analysts will be closely monitoring the company&#8217;s ability to navigate these challenges and deliver results that align with its revised guidance. 
Investors will look for signs of improvement in the Health Services segment and any indications that leadership changes will positively impact operational performance moving forward.
Read Also:
<ul>
<li><a href="https://www.benzinga.com/economics/macro-economic-events/24/11/41715076/oil-prices-spike-by-over-3-as-opec-delays-production-increases-ahead-of-us-electi">Oil Prices Spike By Over 3% As OPEC+ Delays Production Increases Ahead Of US Elections: 5 Energy ETFs To Watch Monday</a></li>
</ul>
According to data from&nbsp;<a href="https://benzinga.grsm.io/register174">Benzinga Pro</a>, CVS has a 52-week high of $83.25 and a 52-week low of $52.77.
Image: Shutterstock

CVS Health Q3 Earnings Preview: Can The Company Overcome Recent Challenges?

Wells Fargo analyst Stephen Baxter maintains CVS Health (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVS#NYSE">CVS</a>) with a Equal-Weight and lowers the price target from $61 to $60.

Price Target

Analyst Ratings

Wells Fargo Maintains Equal-Weight on CVS Health, Lowers Price Target to $60

CVS Health's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVS#NYSE">CVS</a>) short percent of float has risen 5.1% since its last report. The company recently reported that it has 20.80 million shares sold short, which is 1.65% of all regular shares that are available for trading. Based on its trading volume, it would take traders 1.5 days to cover their short positions on average.
<h3>Why Short Interest Matters</h3>
Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock/">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.
Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.
See Also: <a href="https://www.benzinga.com/short-interest">List of the most shorted stocks</a>
<h3>CVS Health Short Interest Graph (3 Months)</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1730135713_0.png" alt="short_fig" />
As you can see from the chart above the percentage of shares that are sold short for CVS Health has grown since its last report. This does not mean that the stock is going to fall in the near-term but traders should be aware that more shares are being shorted.
<h3>Comparing CVS Health's Short Interest Against Its Peers</h3>
Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.
According to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, CVS Health's peer group average for short interest as a percentage of float is 8.32%, which means the company has less short interest than most of its peers.
Did you know that increasing short interest can actually be bullish for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze/">This post by Benzinga Money explains how you can profit from it.</a>
This article was generated by Benzinga's automated content engine and was reviewed by an editor.

Short Sellers

Short Ideas

Looking Into CVS Health's Recent Short Interest

Mizuho analyst Ann Hynes maintains CVS Health (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVS#NYSE">CVS</a>) with a Outperform and lowers the price target from $73 to $66.

Mizuho Maintains Outperform on CVS Health, Lowers Price Target to $66

Investors with a lot of money to spend have taken a bearish stance on CVS Health (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVS#NYSE">CVS</a>).
And retail traders should know.
We noticed this today when the trades showed up on publicly available options history that we track here at Benzinga.
Whether these are institutions or just wealthy individuals, we don't know. But when something this big happens with CVS, it often means somebody knows something is about to happen.
So how do we know what these investors just did? 
Today, <a href="https://pro.benzinga.com/?utm_source=insights">Benzinga</a>'s options scanner spotted 17 uncommon options trades for CVS Health.
This isn't normal.
The overall sentiment of these big-money traders is split between 41% bullish and 47%, bearish.
Out of all of the special options we uncovered, 6 are puts, for a total amount of $401,867, and 11 are calls, for a total amount of $429,972.
<h3>Predicted Price Range</h3>
Analyzing the Volume and Open Interest in these contracts, it seems that the big players have been eyeing a price window from $50.0 to $75.0 for CVS Health during the past quarter. 
<h3>Insights into Volume &amp; Open Interest</h3>
Looking at the volume and open interest is an insightful way to conduct due diligence on a stock.
This data can help you track the liquidity and interest for CVS Health's options for a given strike price.
Below, we can observe the evolution of the volume and open interest of calls and puts, respectively, for all of CVS Health's whale activity within a strike price range from $50.0 to $75.0 in the last 30 days. 
<h3>CVS Health Option Activity Analysis: Last 30 Days</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1729715429_0.png" alt="Options Call Chart" />
<h3>Noteworthy Options Activity:</h3>

<table>
<thead>
<tr>
<th>Symbol</th>
<th>PUT/CALL</th>
<th>Trade Type</th>
<th>Sentiment</th>
<th>Exp. Date</th>
<th>Ask</th>
<th>Bid</th>
<th>Price</th>
<th>Strike Price</th>
<th>Total Trade Price</th>
<th>Open Interest</th>
<th style="text-align: right;">Volume</th>
</tr>
</thead>
<tbody>
<tr>
<td>CVS</td>
<td>PUT</td>
<td>SWEEP</td>
<td>BEARISH</td>
<td>01/17/25</td>
<td>$13.2</td>
<td>$13.2</td>
<td>$13.2</td>
<td>$70.00</td>
<td>$132.0K</td>
<td>4.0K</td>
<td style="text-align: right;">100</td>
</tr>
<tr>
<td>CVS</td>
<td>PUT</td>
<td>SWEEP</td>
<td>BULLISH</td>
<td>01/17/25</td>
<td>$18.2</td>
<td>$18.2</td>
<td>$18.2</td>
<td>$75.00</td>
<td>$127.4K</td>
<td>1.8K</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>CVS</td>
<td>CALL</td>
<td>TRADE</td>
<td>BULLISH</td>
<td>02/21/25</td>
<td>$3.05</td>
<td>$3.0</td>
<td>$3.05</td>
<td>$60.00</td>
<td>$64.0K</td>
<td>1.1K</td>
<td style="text-align: right;">224</td>
</tr>
<tr>
<td>CVS</td>
<td>CALL</td>
<td>TRADE</td>
<td>BULLISH</td>
<td>01/15/27</td>
<td>$5.4</td>
<td>$5.3</td>
<td>$5.4</td>
<td>$70.00</td>
<td>$54.0K</td>
<td>182</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>CVS</td>
<td>PUT</td>
<td>TRADE</td>
<td>BEARISH</td>
<td>11/15/24</td>
<td>$2.49</td>
<td>$2.44</td>
<td>$2.48</td>
<td>$57.50</td>
<td>$49.6K</td>
<td>4.1K</td>
<td style="text-align: right;">231</td>
</tr>
</tbody>
</table>

<h3>About CVS Health</h3>
CVS Health offers a diverse set of healthcare services. Its roots are in its retail pharmacy operations, where it operates over 9,000 stores primarily in the us. CVS is also a large pharmacy benefit manager (acquired through Caremark), processing about 2 billion adjusted claims annually. It also operates a top-tier health insurer (acquired through Aetna) where it serves about 26 million medical members. The company's recent acquisition of Oak Street adds primary care services to the mix, which could have significant synergies with all its existing business lines.
After a thorough review of the options trading surrounding CVS Health, we move to examine the company in more detail. This includes an assessment of its current market status and performance.
<h3>Where Is CVS Health Standing Right Now?</h3>
<ul>
<li>With a trading volume of 9,648,772, the price of CVS is down by -0.11%, reaching $56.79.</li>
<li>Current RSI values indicate that the stock is is currently neutral between overbought and oversold.</li>
<li>Next earnings report is scheduled for 14 days from now.</li>
</ul>
<h3>What The Experts Say On CVS Health</h3>
A total of 5 professional analysts have given their take on this stock in the last 30 days, setting an average price target of $74.0.
Unusual Options Activity Detected: Smart Money on the Move
Benzinga Edge's Unusual Options board spots potential market movers before they happen. See what positions big money is taking on your favorite stocks. <a href="https://www.benzinga.com/premium/ideas/benzinga-edge-checkout/?t=Be8be9arja3be22bz20&amp;utm_source=benzinga-insights">Click here for access</a>. 
&#x2A; Maintaining their stance, an analyst from Evercore ISI Group continues to hold a Outperform rating for CVS Health, targeting a price of $75. 
&#x2A; An analyst from Truist Securities persists with their Buy rating on CVS Health, maintaining a target price of $76. 
&#x2A; An analyst from Barclays has elevated its stance to Overweight, setting a new price target at $82. 
&#x2A; An analyst from Barclays persists with their Overweight rating on CVS Health, maintaining a target price of $75. 
&#x2A; An analyst from Cantor Fitzgerald downgraded its action to Neutral with a price target of $62. 
Trading options involves greater risks but also offers the potential for higher profits. Savvy traders mitigate these risks through ongoing education, strategic trade adjustments, utilizing various indicators, and staying attuned to market dynamics. Keep up with the latest options trades for CVS Health with <a href="https://benzinga.grsm.io/register174">Benzinga Pro</a> for real-time alerts.

Options

What the Options Market Tells Us About CVS Health

In the last three months, 15 analysts have published ratings on CVS Health (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVS#NYSE">CVS</a>), offering a diverse range of perspectives from bullish to bearish.
The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.
<table>
<thead>
<tr>
<th></th>
<th style="text-align: right;">Bullish</th>
<th style="text-align: right;">Somewhat Bullish</th>
<th style="text-align: right;">Indifferent</th>
<th style="text-align: right;">Somewhat Bearish</th>
<th style="text-align: right;">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">5</td>
<td style="text-align: right;">8</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">5</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
</tbody>
</table>
Insights from analysts' 12-month price targets are revealed, presenting an average target of $68.0, a high estimate of $85.00, and a low estimate of $61.00. Witnessing a positive shift, the current average has risen by 6.25% from the previous average price target of $64.00.
<img src="https://www.benzinga.com/files/images/story/2024/1729702860_0_0.png" alt="price target chart" />
<h2>Deciphering Analyst Ratings: An In-Depth Analysis</h2>
A clear picture of CVS Health's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Andrew Mok</td>
<td>Barclays</td>
<td>Lowers</td>
<td>Overweight</td>
<td>$75.00</td>
<td>$82.00</td>
</tr>
<tr>
<td>David Macdonald</td>
<td>Truist Securities</td>
<td>Raises</td>
<td>Buy</td>
<td>$76.00</td>
<td>$66.00</td>
</tr>
<tr>
<td>Andrew Mok</td>
<td>Barclays</td>
<td>Raises</td>
<td>Overweight</td>
<td>$82.00</td>
<td>$63.00</td>
</tr>
<tr>
<td>Elizabeth Anderson</td>
<td>Evercore ISI Group</td>
<td>Raises</td>
<td>Outperform</td>
<td>$75.00</td>
<td>$62.00</td>
</tr>
<tr>
<td>Charles Ryhee</td>
<td>TD Cowen</td>
<td>Raises</td>
<td>Buy</td>
<td>$85.00</td>
<td>$59.00</td>
</tr>
<tr>
<td>Sarah James</td>
<td>Cantor Fitzgerald</td>
<td>Maintains</td>
<td>Neutral</td>
<td>$62.00</td>
<td>$62.00</td>
</tr>
<tr>
<td>Sarah James</td>
<td>Cantor Fitzgerald</td>
<td>Maintains</td>
<td>Neutral</td>
<td>$62.00</td>
<td>$62.00</td>
</tr>
<tr>
<td>Sarah James</td>
<td>Cantor Fitzgerald</td>
<td>Maintains</td>
<td>Neutral</td>
<td>$62.00</td>
<td>$62.00</td>
</tr>
<tr>
<td>Ben Hendrix</td>
<td>RBC Capital</td>
<td>Maintains</td>
<td>Outperform</td>
<td>$68.00</td>
<td>$68.00</td>
</tr>
<tr>
<td>Sarah James</td>
<td>Cantor Fitzgerald</td>
<td>Maintains</td>
<td>Neutral</td>
<td>$62.00</td>
<td>$62.00</td>
</tr>
<tr>
<td>Stephen Baxter</td>
<td>Wells Fargo</td>
<td>Raises</td>
<td>Equal-Weight</td>
<td>$61.00</td>
<td>$60.00</td>
</tr>
<tr>
<td>George Hill</td>
<td>Deutsche Bank</td>
<td>Lowers</td>
<td>Hold</td>
<td>$63.00</td>
<td>$64.00</td>
</tr>
<tr>
<td>Andrew Mok</td>
<td>Barclays</td>
<td>Lowers</td>
<td>Equal-Weight</td>
<td>$63.00</td>
<td>$65.00</td>
</tr>
<tr>
<td>Sarah James</td>
<td>Cantor Fitzgerald</td>
<td>Raises</td>
<td>Neutral</td>
<td>$62.00</td>
<td>$58.00</td>
</tr>
<tr>
<td>Elizabeth Anderson</td>
<td>Evercore ISI Group</td>
<td>Lowers</td>
<td>Outperform</td>
<td>$62.00</td>
<td>$65.00</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to CVS Health. This information offers a snapshot of how analysts perceive the current state of the company.</li>
<li>Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of CVS Health compared to the broader market.</li>
<li>Price Targets: Delving into movements, analysts provide estimates for the future value of CVS Health's stock. This analysis reveals shifts in analysts' expectations over time.</li>
</ul>
Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into CVS Health's market standing. Stay informed and make well-considered decisions with our Ratings Table.
<a href="https://www.benzinga.com/quote/CVS/analyst-ratings?utm_source=Benzinga Insights">Stay up to date on CVS Health analyst ratings.</a>
<h2>Delving into CVS Health's Background</h2>
CVS Health offers a diverse set of healthcare services. Its roots are in its retail pharmacy operations, where it operates over 9,000 stores primarily in the us. CVS is also a large pharmacy benefit manager (acquired through Caremark), processing about 2 billion adjusted claims annually. It also operates a top-tier health insurer (acquired through Aetna) where it serves about 26 million medical members. The company's recent acquisition of Oak Street adds primary care services to the mix, which could have significant synergies with all its existing business lines.
<h3>Financial Insights: CVS Health</h3>
Market Capitalization Analysis: Above industry benchmarks, the company's market capitalization emphasizes a noteworthy size, indicative of a strong market presence.
Positive Revenue Trend: Examining CVS Health's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 2.6% as of 30 June, 2024, showcasing a substantial increase in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Health Care sector.
Net Margin: CVS Health's net margin is impressive, surpassing industry averages. With a net margin of 1.94%, the company demonstrates strong profitability and effective cost management.
Return on Equity (ROE): CVS Health's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 2.38%, the company showcases efficient use of equity capital and strong financial health.
Return on Assets (ROA): CVS Health's ROA excels beyond industry benchmarks, reaching 0.7%. This signifies efficient management of assets and strong financial health.
Debt Management: CVS Health's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 1.12.
<h2>The Core of Analyst Ratings: What Every Investor Should Know</h2>
Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter. 
Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.
Which Stocks Are Analysts Recommending Now?
Benzinga Edge gives you instant access to all major analyst upgrades, downgrades, and price targets. Sort by accuracy, upside potential, and more. <a href="https://www.benzinga.com/premium/ideas/benzinga-edge-checkout/?t=be8be9arja3be22bz21&amp;utm_source=benzinga-insights">Click here to stay ahead of the market</a>.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Where CVS Health Stands With Analysts

Barclays analyst Andrew Mok maintains CVS Health (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVS#NYSE">CVS</a>) with a Overweight and lowers the price target from $82 to $75.

Barclays Maintains Overweight on CVS Health, Lowers Price Target to $75

Walmart Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WMT#NYSE">WMT</a>) announced on Tuesday that it will begin offering Pharmacy Delivery services for both new prescriptions and medication refills, intensifying competition in <a href="https://www.benzinga.com/news/earnings/24/10/41399396/pharmacy-retailer-cvs-health-backs-away-from-annual-forecast-names-new-ceo">the pharmacy retail space.</a>
The Details: Walmart is <a href="https://www.benzinga.com/pressreleases/24/10/b41449460/accelerating-convenience-walmart-launches-nationwide-same-day-pharmacy-delivery-helping-customers-">rolling out</a> Pharmacy Delivery in six states and expects the new service to expand to 49 states by the end of January 2025. Walmart+ members will receive free delivery on Pharmacy Delivery, and non-Walmart+ members will pay the standard delivery charge of $9.95. 
"​​Our extensive footprint across the nation combined with our deep expertise in pharmacy uniquely positions us to make a profound impact in the communities we serve,&#8221; said Kevin Host, senior vice president of Pharmacy at Walmart U.S.
Read Next:<a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/10/41431993/amd-to-benefit-from-ai-competitive-arms-race-goldman-sachs"> AMD To Benefit From AI &#8216;Competitive Arms Race&#8217;: Goldman Sachs</a>
Why It Matters: Walmart's Pharmacy Delivery is another blow to struggling pharmacy retailers CVS Health Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVS#NYSE">CVS</a>) and Walgreens Boots Alliance, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WBA#NASDAQ">WBA</a>) who offer comparable delivery services. The retail giant's move into prescription delivery could lead to market share losses for CVS and Walgreens who already compete with Amazon.com, Inc.'s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>) <a href="https://www.benzinga.com/news/large-cap/24/10/41270285/amazon-pharmacy-to-double-service-areas-offer-same-day-medication-delivery">same-day prescription delivery</a> in some areas. Amazon has plans to expand its pharmacy delivery to 20 more U.S. cities by 2025.
CVS and Walgreens have said <a href="https://www.benzinga.com/news/earnings/24/10/41405992/elevance-cvs-unitedhealth-struggle-with-rising-medical-costs-after-covid-19-medicaid-policy-ends">they are struggling</a> with falling reimbursement rates for prescription drugs. Both retail chains have shuttered store locations and announced cost-cutting measures as part of corporate turnaround strategies. 
The stores may face increased pressure on profit margins and staffing needs due to increased competition from Walmart. Both retailers have already reduced pharmacy hours in response to staffing challenges, which have been partly driven by the need to support delivery services.&nbsp;
WMT, CVS, WBA, AMZN Price Action: According to <a href="https://pro.benzinga.com/?gspk=YWRhbWVja2VydDUzMzY&amp;gsxid=zBMR4PKmcgBw">Benzinga Pro</a>, Walmart shares are up 0.67% at $81.35, CVS shares are down 1.74% at $57.16, Walgreens shares are down 4.64% at $9.96 and Amazon shares are up 0.42% at $189.87 at the time of publication Tuesday.
Read Also:&nbsp;
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<li>&nbsp;<a href="https://www.benzinga.com/news/24/10/41418987/nuclear-energy-stocks-are-hot-heres-a-list-of-tickers-to-watch">Nuclear Energy Stocks Are Hot: Here&#8217;s A List Of Tickers To Watch</a></li>
</ul>
Photo: Jeff Bukowski/Shutterstock.com

Health Care

Movers

General

AMZN

Walmart Launches Same-Day Pharmacy Delivery, Upping Competition For CVS, Walgreens

Shares of CVS Health Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVS#NYSE">CVS</a>) were under pressure in early Monday trading after the company preannounced <a href="https://www.benzinga.com/news/24/10/41401771/cvs-health-cuts-outlook-joins-american-express-and-other-big-stocks-moving-lower-in-fridays-pre-mark">an earnings miss for the third quarter</a>.
The company reported its results amid an <a href="https://www.benzinga.com/earnings">exciting earnings season</a>. Here are some key analyst takeaways.
Piper Sandler On CVS Health
<a href="https://www.benzinga.com/analyst-stock-ratings/analyst/613f2550b4035700018da9d8/jessica-tassan">Analyst Jessica Tassan</a> maintained an Overweight rating and price target of $72.
CVS Health preannounced a significant MLR (medical loss ratio) and earnings miss for the third quarter and withdrew its full-year guidance, Tassan said in a note. "During 3Q24, CVS recorded $1.1B of premium deficiency reserves primarily related to the Medicare and Individual Exchange businesses within HCB (health care benefits)," she wrote.
While rates, risk adjustment and the IRA are exerting pressure on Medicare Advantage, CVS Health has some "self-induced" issues in the Healthcare Benefits (HCB) segment, which should begin to resolve in 2025, the analyst stated. David Joyner has taken over CEO, effective immediately, and could deliver a "multi-year earnings recovery," she added.
Check out <a href="https://www.benzinga.com/analyst-stock-ratings">other analyst stock ratings</a>.
Truist Securities On CVS Health
<a href="https://www.benzinga.com/analyst-stock-ratings/analyst/58c2a8e2b85e930001ba538c/david-macdonald">Analyst David MacDonald</a> reiterated a Buy rating and price target of $76.
CVS Health preannounced its third-quarter adjusted earnings at $1.05-$1.10 per share, significantly below consensus of $1.69 per share, MacDonald said. The results include a charge of around $1.1 billion to record premium deficiency reserves primarily related to the Medicare and Individual Exchange books, which translates to an adjusted earnings headwind of 63 cents per share, he added.
Management no longer believes its prior guidance for 2024 is appropriate, "given continued elevated utilization pressure," the analyst stated. CEO Karen Lynch stepped down and was replaced by industry veteran Joyner, who brings "a wealth of experience in pharmacy services," he further wrote.
CVS Price Action: Shares of CVS Health were down 1.17% to $58.98 at the time of publication on Monday.
Read Next:
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<li> <a href="https://www.benzinga.com/news/large-cap/24/10/41418999/nio-asml-and-cvs-health-are-among-top-10-large-cap-losers-last-week-oct-14-18-are-the-others-in-yo">NIO, ASML, And CVS Health Are Among Top 10 Large Cap Losers Last Week (Oct 14-18): Are The Others In Your Portfolio?</a></li>
</ul>
Photo via Wikimedia Commons

Analyst Color

Earnings Beats

Reiteration

CVS Health Preannounces Large Earnings Miss, But Analysts Stay Bullish On Long-Term Recovery

In a significant development in the health insurance industry, Cigna Group (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CI#NYSE">CI</a>) has reinitiated discussions to merge with Humana Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HUM#NYSE">HUM</a>), potentially creating a giant in the sector.
Talks, previously stalled over pricing disagreements, have resumed with a focus on a transformative consolidation that could reshape market dynamics.
According to a <a target="_blank" href="https://www.bloomberg.com/news/articles/2024-10-18/cigna-resumes-merger-discussions-with-humana-after-talks-ended-last-year?sref=TBDibEcD" rel="noreferrer noopener">Bloomberg</a> report on Friday, the early talks about the merger would significantly expand Cigna&#8217;s footprint in Medicare Advantage alongside its commercial insurance prowess while leveraging Humana&#8217;s strong Medicare segment.
Also: <a target="_blank" href="https://www.benzinga.com/news/large-cap/24/09/40964870/us-federal-trade-commission-sues-cvs-health-cigna-unitedhealths-pharmacy-benefit-managers-for-infl" rel="noreferrer noopener">US Federal Trade Commission Sues CVS Health, Cigna, UnitedHealth&#8217;s Pharmacy Benefit Managers For Inflating Insulin Prices</a>
Last year, both <a target="_blank" href="https://www.benzinga.com/markets/equities/23/11/36007194/whats-going-on-with-healthcare-insurance-giant-cigna-stock-today" rel="noreferrer noopener">companies faced challenges</a> as they navigated federal pressures to reduce Medicare costs, severely impacting Humana&#8217;s market performance and valuation.
These resumed talks hint at a possible major realignment aiming to fortify their positions against competitors like UnitedHealth Group Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UNH#NYSE">UNH</a>) and&nbsp;CVS Health Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVS#NYSE">CVS</a>).
The merger discussions are still in the nascent stages, with no decisions made. Both companies declined to comment on the ongoing negotiations.
A potential deal, estimated to be among the top five health insurance mergers, reflects a strategic shift in the industry focused on consolidation amid rising healthcare costs and stringent regulatory environments.
This deal could not only stabilize Humana&#8217;s declining Medicare enrollments but also enhance Cigna&#8217;s capabilities in managing more comprehensive healthcare plans.
Furthermore, a merger could ease the competitive pressure from the rapidly growing sectors of the industry, providing a robust challenge to established giants.
Humana&#8217;s stock value sharply declined due to lower-than-expected government reimbursements and increased demand for medical services. The merger is, therefore, potentially crucial for recovery and growth.
Price Action: CI stock is down 4.18% at $321.94, and HUM stock is up 0.88% at $269.50 at last check Monday.
Read Next:
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<li><a href="https://www.benzinga.com/general/biotech/24/10/41409405/after-failed-confirmatory-trial-gilead-withdraws-us-accelerated-approval-of-trodelvy-as-bladder-c" target="_blank" rel="noreferrer noopener">After Failed Confirmatory Trial, Gilead Withdraws US Accelerated Approval Of Trodelvy As Bladder Cancer Treatment</a>.</li>
</ul>
Photo via Shutterstock

Large Cap

Rumors

Media

Cigna And Humana Revive Early Merger Talks After Year-Long Pause As Medicare Cost Pressure Looms

These ten large-cap stocks were the worst performers in the last week. Are they in your portfolio?
<ol>
<li>NIO Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NIO#NYSE">NIO</a>) stock lost 16.35% last week as U.S.-listed Chinese stocks <a href="https://www.benzinga.com//node/41385461" target="_blank" rel="noreferrer noopener">fell after China&#8217;s September exports</a> missed estimates. China stimulus uncertainty has also weighed on stocks recently.</li>
<li>KLA Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KLAC#NASDAQ">KLAC</a>) stock dipped 15.58%, probably due to continued weakness following weak guidance from ASML.</li>
<li>Centene Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CNC#NYSE">CNC</a>) shares were down 14.38%. The company will report <a href="https://www.benzinga.com/earnings" target="_blank" rel="noreferrer noopener">third-quarter results on October 25</a>.</li>
<li>Elevance Health shares dipped 14.17% after analysts cut forecasts <a href="https://www.benzinga.com//node/41405601" target="_blank" rel="noreferrer noopener">following third-quarter earnings</a>.</li>
<li>ASML Holding N.V. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ASML#NASDAQ">ASML</a>) shares tumbled 13.97% after the company accidentally released earnings a day ahead of schedule and <a href="https://www.benzinga.com//node/41358875" target="_blank" rel="noreferrer noopener">cut its 2025 sales forecast</a>.</li>
<li>Temu parent PDD Holdings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PDD#NASDAQ">PDD</a>) stock fell 13.91%, as did U.S.-listed Chinese stocks <a href="https://www.benzinga.com//node/41316058" target="_blank" rel="noreferrer noopener">after China&#8217;s September exports</a> missed estimates. China stimulus uncertainty has also weighed on stocks recently.</li>
<li>Molina Healthcare Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MOH#NYSE">MOH</a>) shares were down 12.24%, probably in sympathy with Elevance Health, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ELV#NYSE">ELV</a>), which reported third-quarter earnings miss and issued soft FY24 guidance.</li>
<li>Lam Research Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LRCX#NASDAQ">LRCX</a>) stock dived 12.12%, probably in sympathy with Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>), which reported better-than-expected <a href="https://www.benzinga.com//node/41377745" target="_blank" rel="noreferrer noopener">earnings and issued strong guidance</a>.</li>
<li>Erie Indemnity Company (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ERIE#NASDAQ">ERIE</a>) fell 9.92% last week after Spruce Point Management <a href="https://www.sprucepointcap.com/research/erie-indemnity-company" target="_blank" rel="noreferrer noopener">issued a short-sell report</a> on the stock. The company was under pressure due to Category 5 Hurricane Milton.</li>
<li>CVS Health Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVS#NYSE">CVS</a>) stock fell 9.44% last week after the company <a href="https://www.benzinga.com//node/41399396" target="_blank" rel="noreferrer noopener">cut its Q3 outlook</a>.</li>
</ol>
Also Read:
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<li><a href="https://www.benzinga.com/news/large-cap/24/10/41418879/coinbase-united-airlines-and-sofi-tech-are-among-top-11-large-cap-gainers-last-week-oct-14-18-are-" target="_blank" rel="noreferrer noopener">Coinbase, United Airlines And Sofi Tech Are Among Top 11 Large Cap Gainers Last Week (Oct 14-18): Are The Others In Your Portfolio?</a></li>
</ul>
Photo via Shutterstock

ASML

streetTRACKS Dow Jones U.S. Large Cap Value Index Fund

ERIE

KLAC

LRCX

Citigourp Global Markets 2% Protected Notes Linked To The Djia

NIO, ASML, And CVS Health Are Among Top 10 Large Cap Losers Last Week (Oct 14-18): Are The Others In Your Portfolio?

U.S. stocks traded mostly higher toward the end of trading, with the Nasdaq Composite gaining over 100 points on Friday.
The Dow traded up 0.04% to 43,258.31 while the NASDAQ rose 0.67% to 18,496.61. The S&amp;P 500 also rose, gaining, 0.40% to 5,865.01.
Check This Out: <a href="https://www.benzinga.com/trading-ideas/long-ideas/24/10/41377157/top-3-risk-off-stocks-which-could-rescue-your-portfolio-this-quarter">Top 3 Risk Off Stocks Which Could Rescue Your Portfolio This Quarter</a>
Leading and Lagging Sectors Communication services shares jumped by 1% on Friday.
In trading on Friday, energy shares fell by 0.5%.
Top Headline
Schlumberger N.V. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SLB#NYSE">SLB</a>) reported mixed third-quarter results.
Revenue grew 10.2% year over year to $9.159 billion, missing the consensus of $9.25 billion. Adjusted EPS increased 14% to 89 cents, above the consensus of 88 cents.
Equities Trading UP &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<ul>
<li>United States Cellular Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USM#NYSE">USM</a>) shares shot up 7% to $62.56 after the company announced the sale of a portion of its retained spectrum licenses to Verizon for $1 billion.</li>
<li>Shares of Bright Minds Biosciences Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DRUG#NASDAQ">DRUG</a>) got a boost, surging 159% to $56.25. The company announced a $35 million non-brokered private placement.</li>
<li>SOBR Safe, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOBR#NASDAQ">SOBR</a>) shares were also up, gaining 27% to $10.10 after the company announced it filed a form RW and will not pursue a public offering at this time.</li>
</ul>
Equities Trading DOWN
<ul>
<li>MGP Ingredients, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MGPI#NASDAQ">MGPI</a>) shares dropped 25% to $60.96 after the company issued soft preliminary guidance and lowered its 2024 financial outlook.</li>
<li>Shares of Lilium N.V. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LILM#NASDAQ">LILM</a>) were down 15% to $0.4917. On Thursday, Canaccord Genuity downgraded the stock from Buy to Hold and cut its price target from $1.85 to $0.70.</li>
<li>CVS Health Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVS#NYSE">CVS</a>) was down, falling 6% to $59.83 after the company cut its third-quarter outlook.</li>
</ul>
Commodities In commodity news, oil traded down 1.5% to $69.62 while gold traded up 0.9% at $2,731.20.
Silver traded up 4.9% to $33.325 on Friday, while copper rose 1.5% to $4.3880.
Euro zone
European shares closed mostly higher today. The eurozone's STOXX 600 rose 0.21%, Germany's DAX rose 0.38% and France's CAC 40 climbed 0.39%. Spain's IBEX 35 Index rose 0.17%, while London's FTSE 100 fell 0.32%.
Construction output in the Eurozone fell by 2.5% year-over-year in August compared to a revised 2.3% decline in the previous month. The current account surplus in the Eurozone increased to €35.2 billion in August from €26.8 billion in the year-ago period.
Asia Pacific Markets
Asian markets closed higher on Friday, with Japan's Nikkei 225 gaining 0.18%, Hong Kong's Hang Seng Index climbing 3.61%, China's Shanghai Composite Index gaining 2.91% and India's BSE Sensex gaining 0.27%.
Economics
<ul>
<li>U.S. housing starts fell by 0.5% from the previous month to an annualized rate of 1.354 million units in September.</li>
<li>Building permits declined by 2.9% to an annual rate of 1.428 million in September.</li>
<li>The total number of active U.S. oil rigs rose by one to 482 rigs this week, Baker Hughes Inc reported.</li>
</ul>
Now Read This: 
<ul>
<li><a href="https://www.benzinga.com/trading-ideas/long-ideas/24/10/41402086/wall-streets-most-accurate-analysts-give-their-take-on-3-financials-stocks-delivering-hi">Wall Street&#8217;s Most Accurate Analysts Give Their Take On 3 Financials Stocks Delivering High-Dividend Yields</a></li>
</ul>

DRUG

LILM

MGPI

SOBR

Nasdaq Surges Over 100 Points; Schlumberger Reports Mixed Q3 Result

Wall Street was in positive territory in Friday midday trading, buoyed by upbeat quarterly earnings reports that kept <a href="https://www.benzinga.com/markets">investor sentiment bullish.</a>
Netflix Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NFLX#NASDAQ">NFLX</a>) surged 10% to fresh record highs after delivering a strong earnings beat. The tech-heavy Nasdaq 100 rose 0.8%, pushing its weekly performance into positive territory for the sixth consecutive week.
The S&amp;P 500 and Dow also edged higher, both on track for the sixth straight week of gains, with the Dow flirting with all-time highs.
Gold miners led industry performance as gold prices hit new record levels above $2,700 per ounce. The VanEck Gold Miners ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GDX#NYSE">GDX</a>) soared over 4%, hitting the highest level in over four years. Friday is poised to mark the fourth straight session of gains for both gold and silver, with silver jumping over 3%, heading for its best day since late September.
West Texas Intermediate (WTI) crude prices tumbled more than 2%, slipping below the $70-per-barrel mark. WTI is down over 8% for the week, on pace for its worst weekly decline since January.
Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) climbed 2.8% to above $68,800.
<h3 class="wp-block-heading">Friday&#8217;s Performance In Major US Indices, ETFs</h3>
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Major Indices</td>
<td>Price</td>
<td>1-day % change</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>20,352.25</td>
<td>0.8%</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>5,870.75</td>
<td>0.5%</td>
</tr>
<tr>
<td>Dow Jones</td>
<td>43,300.82</td>
<td>0.1%</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>2,279.45</td>
<td>-0.1%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Updated at 12:55 p.m. ET</figcaption></figure>
According to <a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent101824&amp;t=be2bearmibe3na1">Benzinga Pro</a> data:
<ul>
<li>The&nbsp;SPDR S&amp;P 500 ETF Trust&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) rose 0.5% to $585.12.</li>
<li>The&nbsp;SPDR Dow Jones Industrial Average&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>)&nbsp;inched 0.1% higher to $433.01.</li>
<li>The tech-heavy Invesco QQQ Trust Series (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) rose 0.8% to $495.21.</li>
<li>The iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) stalled at $226.03.</li>
<li>The Communication Services Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLC#NYSE">XLC</a>) outperformed, up 0.9%. The Energy Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>) lagged, down 0.6%.</li>
</ul>
<h3 class="wp-block-heading">Friday&#8217;s Stock Movers</h3>
<ul>
<li>Stocks moving in reaction to earnings reports were Intuitive Surgical Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ISRG#NASDAQ">ISRG</a>), up over 9%, Crown Holdings Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CCK#NYSE">CCK</a>), up over 4%, Western Alliance Bancorporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WAL#NYSE">WAL</a>), down 6%, American Express Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AXP#NYSE">AXP</a>), down 2.4%, Procter &amp; Gamble Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PG#NYSE">PG</a>) down 0.4%, Schlumberger N.V. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SLB#NYSE">SLB</a>) down 3.3%, Fifth Third Bancorp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FITB#NASDAQ">FITB</a>), down 1.7%, Ally Financial Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ALLY#NYSE">ALLY</a>), down 1% and Comerica Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CMA#NYSE">CMA</a>), up 4%. </li>
<li>Lamb Weston Holdings Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LW#NYSE">LW</a>) soared 10% following a report indicating that activist investor&nbsp;Jana Partners&nbsp;has built a 5% stake in the company.</li>
<li>CVS Health Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVS#NYSE">CVS</a>) fell over 6% after the company replaced its CEO and cut its third-quarter outlook.</li>
</ul>
Read Next:
<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/10/41406623/netflix-should-continue-to-outperform-6-analysts-on-streaming-stocks-q3-earnings">Netflix &#8216;Should Continue To Outperform&#8217;: 6 Analysts On Streaming Stock&#8217;s Q3 Earnings</a></li>
</ul>
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Equities

Sector ETFs

Broad U.S. Equity ETFs

Treasuries

Econ #s

Tech

ETFs

$BTC

ALLY

SPDR Dow Jones Industrial Average ETF Trust

FITB

Market Vectors ETF Trust Market Vectors Gold Miners

ISRG

NFLX

Stocks Rise, Netflix Soars To Record Highs, Oil Falls Below $70, Gold Miners Rally: What's Driving Markets Friday?

U.S. stocks traded mostly higher midway through trading, with the Nasdaq Composite gaining around 100 points on Friday.
The Dow traded up 0.03% to 43,252.87 while the NASDAQ rose 0.55% to 18,474.05. The S&amp;P 500 also rose, gaining, 0.33% to 5,861.03.
Check This Out: <a href="https://www.benzinga.com/trading-ideas/long-ideas/24/10/41377157/top-3-risk-off-stocks-which-could-rescue-your-portfolio-this-quarter">Top 3 Risk Off Stocks Which Could Rescue Your Portfolio This Quarter</a>
Leading and Lagging Sectors Communication services shares jumped by 1.2% on Friday.
In trading on Friday, energy shares fell by 1%.
Top Headline
American Express Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AXP#NYSE">AXP</a>) shares fell around 5% on Friday after the company reported results for the third quarter.
The company said quarterly revenue (net of interest expense) grew 8% year-on-year to $16.64 billion, marginally missing the analyst consensus estimate of $16.67 billion. Adjusted EPS of $3.49 beat the analyst consensus estimate of $3.28.
Equities Trading UP &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<ul>
<li>United States Cellular Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USM#NYSE">USM</a>) shares shot up 12% to $65.62 after the company announced the sale of a portion of its retained spectrum licenses to Verizon for $1 billion.</li>
<li>Shares of Bright Minds Biosciences Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DRUG#NASDAQ">DRUG</a>) got a boost, surging 196% to $64.35. The company announced a $35 million non-brokered private placement.</li>
<li>SOBR Safe, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOBR#NASDAQ">SOBR</a>) shares were also up, gaining 55% to $12.30 after the company announced it filed a form RW and will not pursue a public offering at this time.</li>
</ul>
<h3 class="wp-block-heading">Equities Trading DOWN</h3>
<ul>
<li>MGP Ingredients, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MGPI#NASDAQ">MGPI</a>) shares dropped 26% to $60.24 after the company issued soft preliminary guidance and lowered its 2024 financial outlook.</li>
<li>Shares of Lilium N.V. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LILM#NASDAQ">LILM</a>) were down 11% to $0.5101. On Thursday, Canaccord Genuity downgraded the stock from Buy to Hold and cut its price target from $1.85 to $0.70.</li>
<li>CVS Health Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVS#NYSE">CVS</a>) was down, falling 8% to $58.77 after the company cut its third-quarter outlook.</li>
</ul>
Commodities In commodity news, oil traded down 1.2% to $69.84 while gold traded up 0.9% at $2,731.90.
Silver traded up 2.9% to $32.705 on Friday, while copper rose 1.2% to $4.3785.
Euro zone
European shares were mixed today. The eurozone's STOXX 600 rose 0.1%, Germany's DAX rose 0.31% and France's CAC 40 climbed 0.35%. Spain's IBEX 35 Index fell 0.1%, while London's FTSE 100 fell 0.52%.
Construction output in the Eurozone fell by 2.5% year-over-year in August compared to a revised 2.3% decline in the previous month. The current account surplus in the Eurozone increased to €35.2 billion in August from €26.8 billion in the year-ago period.
Asia Pacific Markets
Asian markets closed higher on Friday, with Japan's Nikkei 225 gaining 0.18%, Hong Kong's Hang Seng Index climbing 3.61%, China's Shanghai Composite Index gaining 2.91% and India's BSE Sensex gaining 0.27%.
Economics
<ul>
<li>U.S. housing starts fell by 0.5% from the previous month to an annualized rate of 1.354 million units in September.</li>
<li>Building permits declined by 2.9% to an annual rate of 1.428 million in September.</li>
</ul>
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Eurozone

Commodities

Intraday Update

Crude Oil Down Over 1%; American Express Shares Fall After Q3 Results

Several large insurers have reported higher-than-expected medical costs, particularly in their government-sponsored Medicaid plans, following the end of a pandemic-era policy that required insurers <a href="https://www.benzinga.com/news/earnings/24/10/41387258/3-medical-services-stocks-to-buy-to-navigate-industry-challenges">to keep members enrolled. </a>
The Details: The end of the COVID-19 public health emergency triggered significant changes to Medicaid coverage, including the end of the continuous enrollment provision, which prevented states from disenrolling members during the pandemic. Beginning on April 1, 2023, states began the process of redetermining eligibility for all Medicaid enrollees, which<a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/10/41388721/why-is-elevance-health-stock-trading-lower-on-thursday"> created a disparity</a> between payments from states and rising trends in medical expenses for insurers. 
Analysts at William Blair <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/10/41388721/why-is-elevance-health-stock-trading-lower-on-thursday">recently noted</a> that large managed care organizations (MCOs) seem to be facing pressure regarding Medicaid utilization. At the same time, outdated data often determine the premiums they receive from states.
Read Next: <a href="https://www.benzinga.com/news/24/10/41385546/ftc-click-to-cancel-rule-makes-it-easy-to-end-subscriptions-what-it-means-for-netflix-planet-fitness">FTC &#8216;Click-To-Cancel&#8217; Rule Makes It Easy To End Subscriptions: What It Means For Netflix, Planet Fitness And More</a>
Effects on Insurers: Elevance Health, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ELV#NYSE">ELV</a>) lowered its <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/10/41388721/why-is-elevance-health-stock-trading-lower-on-thursday">annual profit forecast </a>Thursday due to persistently high medical costs tied to its Medicaid plans, which account for 20% of the company's total medical membership. 
&#8220;The issues impacting the Medicaid business are time-bound,&#8221; Elevance CEO Gail Boudreaux said on the company's earnings call.&nbsp;
CVS Health Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVS#NYSE">CVS</a>) replaced its CEO on Friday and cut its <a href="https://www.benzinga.com/news/earnings/24/10/41399396/pharmacy-retailer-cvs-health-backs-away-from-annual-forecast-names-new-ceo">third-quarter outlook</a> to earnings of between $1.05 and $1.10, compared to the consensus estimate of $1.70. The company cited "elevated medical cost pressures in the Health Care Benefits segment" as a cause of the revision.&nbsp;&nbsp;
UnitedHealth Group Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UNH#NYSE">UNH</a>) reported its <a href="https://www.benzinga.com/news/earnings/24/10/41328272/unitedhealth-q3-earnings-revenue-and-eps-beat-revises-annual-profit-guidance-as-change-healthcare-c">third-quarter results </a>on Tuesday and also lowered its annual profit forecast as challenges across its government-supported health insurance businesses continue.&nbsp;
UnitedHealth's president and CFO John Rex pointed to "the continued timing mismatch between the current health status of Medicaid members and state rate updates" as an ongoing pressure point for the company.&nbsp;
"As a result of the lagging care activity data, as well as the annual rate cycle timing, updates remain well short of current care activity, a factor that for us was more pronounced through the period than anticipated," Rex said on the company's post-earnings conference call.&nbsp;
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</ul>
Image: Shutterstock&nbsp;

Elevance, CVS, UnitedHealth Struggle With Rising Medical Costs After COVID-19 Medicaid Policy Ends

Macro Economic Events

Market Summary

Economics

BABA

Benzinga Market Summary: CVS Falls On CEO Change And Weak Prelim. Q3 Outlook, Netflix Beats Estimates, Chinese Stocks Rise On Upbeat Economic Data

Earlier,&nbsp;Glenview and CVS executed a Non-Disclosure Agreement to facilitate the good faith exchange of information and perspectives and discussions commenced. We remain under&nbsp;NDA.
We believe the Company's culture, governance and leadership should be strengthened by those with both appropriate industry experience as well as fresh perspectives and that the Company would be best served through prompt Board evolution. The decision by Karen Lynch and the Board to offer and accept her resignation is one we respect and support. All material decisions impacting the future of&nbsp;CVS should be addressed by an enhanced Board that incorporates such external perspectives.
We thank Ms. Lynch for her years of service to Aetna and&nbsp;CVS Health along with her candor and integrity in recent conversations and wish her well in her future endeavors. We look forward to engaging with David&nbsp;Joyner in the near future to discuss opportunities to enhance the performance, culture and governance of this iconic institution to drive value for all stakeholders. &nbsp;&nbsp;
Concurrent with today's CEO announcement,&nbsp;CVS Health confirmed that three quarters of its businesses, led by Caremark and CVS stores, continue to perform at or above expectations, reflective of the hard work, skill and acumen of the people of&nbsp;CVS. Losses in Aetna's Medicare Advantage product, which&nbsp;Glenview estimates for 2024 will approximate $3.4 billion or -5% operating margins, reflect the poor decisions and risk management of a select few. We believe these issues are quite fixable with strong leadership and appropriate Board oversight and risk management.
Shareholders need to play an active role in demanding immediate Board refreshment to both support and challenge Management and to recruit and fortify a world class leadership team. This will best serve the long-term interests of the 300,000 employees and 120 million customers of&nbsp;CVS who deserve better now.
Together we climb.

Management

Glenview Capital Issues Statement On CVS Health; Losses In Aetna's Medicare Advantage Product, Which Glenview Estimates For 2024 Will ~$3.4B Or -5% Operating Margins, Reflect The Poor Decisions And Risk Management Of A Select Few

U.S. stock futures were mixed this morning, with the Nasdaq futures gaining around 90 points on Friday.
Shares of CVS Health Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVS#NYSE">CVS</a>) fell sharply in today's pre-market trading after the company cut its <a href="https://www.benzinga.com/quote/CVS">third-quarter outlook.</a>
CVS Health appointed longtime executive David Joyner as its new president and CEO, replacing Karen Lynch amid the company's ongoing financial struggles. The company warned that its upcoming third-quarter earnings, set for release on November 6, will miss Wall Street projections.
CVS Health shares dipped 11.6% to $56.29 in pre-market trading.
Here are some big stocks recording losses in today's pre-market trading session.
<ul>
<li>MGP Ingredients, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MGPI#NASDAQ">MGPI</a>) shares dipped 16.6% to $68.06 after the company issued soft preliminary guidance and lowered its 2024 financial outlook.</li>
<li>Coherent Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/COHR#NASDAQ">COHR</a>) shares fell 4.6% to $97.39 in pre-market trading.</li>
<li>Zeta Global Holdings Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ZETA#NYSE">ZETA</a>) shares fell 4.5% to $28.66 in pre-market trading. Zeta is expected to release its third quarter 2024 financial results after the closing bell on Monday, Nov. 11.</li>
<li>Jin Medical International Ltd. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ZJYL#NASDAQ">ZJYL</a>) shares fell 4.3% to $2.03 in pre-market trading after declining around 5% on Thursday.</li>
<li>GrafTech International Ltd. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EAF#NASDAQ">EAF</a>) shares fell 4.1% to $1.62 in pre-market trading.</li>
<li>Gevo, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GEVO#NASDAQ">GEVO</a>) shares fell 3.8% to $2.55 in pre-market trading. HC Wainwright &amp; Co. analyst Amit Dayal reiterated Gevo with a Buy and maintained a $14 price target.</li>
<li>American Express Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AXP#NYSE">AXP</a>) shares fell 3.6% to $275.50 in pre-market trading following third-quarter results.</li>
<li>Fresh Del Monte Produce Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FDP#NYSE">FDP</a>) shares fell 3.5% to $29.00 in pre-market trading. Fresh Del Monte Produce will issue a press release on its third quarter financial results prior to market opening on Thursday, Oct. 31.</li>
</ul>
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COHR

GEVO

ZETA

ZJYL

CVS Health Cuts Outlook, Joins American Express And Other Big Stocks Moving Lower In Friday's Pre-Market Session

Wall Street is priming for a positive start on Friday after the major averages ended narrowly mixed in the previous session. <a href="https://www.benzinga.com/news/earnings/24/10/41391637/netflix-q3-earnings-revenue-beats-eps-tops-q4-guidance-projects-subscriber-boost-from-squid-game-nf">Positive reaction</a> to Netflix, Inc.&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NFLX#NASDAQ">NFLX</a>) earnings could provide a lift to the tech space, given earnings news flow from the sector will likely start in earnest next week. Earnings and speeches by Federal Reserve officials could set the tempo for Friday&#8217;s session. China&#8217;s third-quarter GDP rose slightly more than estimates, allaying the fears of traders. Gold continues to make record after record, while oil continues to have a volatile ride amid geopolitical tensions.
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Futures</td>
<td>Performance (+/-)</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>+0.39%</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>+0.17%</td>
</tr>
<tr>
<td>Dow</td>
<td>+0.03%</td>
</tr>
<tr>
<td>R2K</td>
<td>+0.46%</td>
</tr>
</tbody>
</table>
</figure>
In premarket trading on Friday,&nbsp;the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) rose 0.23% to $583.61 and the&nbsp;Invesco QQQ ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) jumped 0.51% to $493.75, according to&nbsp;<a href="https://benzinga.grsm.io/lxquj26b2sag" target="_blank" rel="noreferrer noopener">Benzinga Pro data</a>.
Cues From Last Session:
U.S. stocks closed narrowly mixed as traders digested a batch of mixed economic data as well as a flurry of earnings. After opening higher, the major indices experienced some volatility in the morning, although holding mostly above the unchanged line. 
Stocks gave back most of their gains in late afternoon trading before finishing on a mixed note. 
The Dow Industrials closed at fresh intraday and closing highs, thanks to a positive reaction to Travelers Companies, Inc.&#8217;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TRV#NYSE">TRV</a>) earnings, while the S&amp;P 500 Index hit an intraday high before squandering all the gains and closing marginally lower.
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Index</td>
<td>Performance (+/)</td>
<td>Value</td>
</tr>
<tr>
<td>Nasdaq Composite</td>
<td>+0.04%</td>
<td>18,373.61</td>
</tr>
<tr>
<td>S&amp;P 500 Index</td>
<td>+0.02%</td>
<td>5,841.47</td>
</tr>
<tr>
<td>Dow Industrials</td>
<td>+0.37%</td>
<td>43,239.05</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>-0.25%</td>
<td>2,280.85</td>
</tr>
</tbody>
</table>
</figure>
Insights From Analysts:
After separate reports showed strong September retail sales growth, jobless claims, which fell after Hurricane Helene&#8217;s impact wore off, and a decline in industrial production amid the Boeing Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BA#NYSE">BA</a>) strike, Comerica Chief Economist Bill Adams said, &#8220;The economy is in pretty good shape.&#8221; &#8220;Since consumer spending fuels two-thirds of U.S. demand, the economy can't be doing too bad as long as consumers still have their pocketbooks open,&#8221; he said.
The economist expects the Hurricanes that devastated swathes of the Southeast in late September and early October to be a big drag on releases for October.&nbsp;This will make it difficult to read the underlying trend accurately, he said.
Calling the headwinds temporary, Adams said, &#8220;With the Fed expected to continue lowering interest rates through the turn of the year, credit-sensitive sectors of the economy should perk up in coming quarters, sustaining the economic expansion into 2025.&#8221;
See Also:<a href="https://www.benzinga.com/money/best-strategies-for-futures-trading"> Best Futures Trading Strategies in 2024</a>
Upcoming Economic Data:
<ul>
<li>The Commerce Department will release the housing starts report for September at 8:30 a.m. EDT. Economists, on average, estimate housing starts to come in at a seasonally adjusted annual rate of 1.35 million units, slightly down from the 1.36-million-unit rate in August. Building permits, an indicator of future housing starts may have declined from 1.48 million units to 1.45 million units.</li>
<li>Among the Fed speakers scheduled for the day are:
<ul>
<li>Atlanta Fed president Raphael Bostic: 9:30 a.m. EDT</li>
<li>Minneapolis Fed President Neel Kashkari: 10 a.m. EDT</li>
<li>Fed Governor Christopher Waller is due to speak at 12:10 p.m. EDT.</li>
</ul>
</li>
<li>The Atlanta Fed&#8217;s GDPNow data for the third quarter will be released at 10:30 a.m. EDT.</li>
</ul>
Stocks In Focus:
<ul>
<li>Netflix climbed about 5.75% <a href="https://www.benzinga.com/premarket">in premarket trading</a> following the streaming giant&#8217;s quarterly results.</li>
<li>Among the other stocks moving on earnings are Intuitive Surgical, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ISRG#NASDAQ">ISRG</a>) (up nearly 7%), and Western Alliance Bancorporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WAL#NYSE">WAL</a>) (down over 5.25%.</li>
<li>Ally Financial Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ALLY#NYSE">ALLY</a>), Autoliv, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ALV#NYSE">ALV</a>), Fifth Third Bancorp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FITB#NASDAQ">FITB</a>), Procter &amp; Gamble Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PG#NYSE">PG</a>), Regions Financial Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RF#NYSE">RF</a>) and Schlumberger Limited (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SLB#NYSE">SLB</a>) and American Express Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AXP#NYSE">AXP</a>) are among the noteworthy <a href="https://www.benzinga.com/calendars/earnings">companies reporting ahead of the market opening</a>.</li>
<li>CVS Health Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVS#NYSE">CVS</a>) fell over 10% after the Wall Street Journal reported that the company is naming longtime executive David Joyner as its new chief, succeeding Karen Lynch.</li>
<li>Coherent Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/COHR#NYSE">COHR</a>) fell over 6% on a negative analyst action.</li>
</ul>
Commodities, Bonds And Global Equity Markets:
Crude oil futures pulled back modestly but gold futures gained ground as they scaled a fresh record. Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) added over 1.50% over the past 24 hours and traded just under the $68K mark.
The 10-year U.S. Treasury note yield was little changed at 4.097%.
Asian stocks closed mostly higher, led by China and Hong Kong, which rallied on the back of the Chinese third-quarter GDP data. The Japanese market benefited from the yen&#8217;s weakness. The European Central Bank&#8217;s rate cut also buoyed sentiment.
The European markets also advanced in early trading, although the U.K. market was experiencing some weakness.
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Futures

Previews

Federal Reserve

US Stocks Set To End Week Strong As Netflix Q3 Earnings Boost Optimism, Gold Hits New Highs: What's Driving Sentiment Friday?

On Friday, CVS Health Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVS#NYSE">CVS</a>) appointed longtime executive David Joyner as its new president and CEO, replacing Karen Lynch amid the company&#8217;s <a target="_blank" href="https://www.benzinga.com/pressreleases/24/10/n41398693/cvs-health-appoints-david-joyner-president-and-chief-executive-officer" rel="noreferrer noopener">ongoing financial struggles</a>.
Joyner, previously president of CVS Caremark and an executive vice president at the company, steps into this leadership role as Roger Farah, CVS&#8217;s board chairman, assumes the executive chair position.
The company warned that its upcoming third-quarter earnings, set for release on November 6, will miss Wall Street projections.
The company revealed preliminary third-quarter 2024 adjusted EPS of $1.05-$1.10, compared to the <a target="_blank" href="https://www.benzinga.com/calendars/earnings" rel="noreferrer noopener">consensus of $1.70</a>. Analysts expect sales of $92.73 billion.
Results for the third quarter include charges to record premium deficiency reserves (PDRs), primarily related to the company&#8217;s Medicare and Individual Exchange businesses inside its Health Care Benefits segment, of approximately&nbsp;$1.1 billion, which lowered third quarter 2024 Adjusted EPS by&nbsp;$0.63.
In the third quarter of 2024, CVS continued to experience medical cost trends over those projected in its prior outlook.
The Medical Benefit Ratio for the third quarter is currently expected to be approximately 95.2%, which includes a 220-basis point impact from the PDRs.
The company added, &#8221; In light of continued elevated medical cost pressures in the Health Care Benefits segment, investors should no longer rely on the company&#8217;s previous guidance.&#8221;
The pharmacy giant is also backing away from the fiscal year 2024 issued during the second-<a target="_blank" href="https://www.benzinga.com/news/earnings/24/08/40220306/cvs-health-reports-mixed-q2-earnings-lowers-2024-outlook-reshuffles-segment-management" rel="noreferrer noopener">quarter earnings release</a>.
The company&nbsp;reported second-quarter sales of $91.23 billion, missing the&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/earnings" rel="noreferrer noopener">consensus of $91.51 billion</a>.&nbsp;Adjusted EPS of&nbsp;$1.83&nbsp;decreased from&nbsp;$2.21&nbsp;in the prior year, beating the consensus of $1.73.&nbsp;
In Q2 earnings, CVS Health revised its 2024 adjusted EPS guidance to $6.40-$6.65&nbsp;from at least&nbsp;$7.00&nbsp;versus consensus of $6.98.
CVS Health&nbsp;forecasted&nbsp;2024 sales of $369.0 billion—$372.0 billion versus a consensus of $368.876 billion at prior guidance of at least $369 billion.
The company expected a medical benefits ratio of 90.6% – 90.8% versus ~<a target="_blank" href="https://www.benzinga.com/news/earnings/24/08/40220306/cvs-health-reports-mixed-q2-earnings-lowers-2024-outlook-reshuffles-segment-management" rel="noreferrer noopener">89.8% expected earlier</a>.
The company is already struggling as the Federal Trade Commission (FTC) filed a formal complaint against three major pharmacy benefit managers (PBMs)—CVS Health&#8217;s Caremark,&nbsp;Cigna Corp&#8217;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CI#NYSE">CI</a>)&nbsp;Express Scripts, and&nbsp;UnitedHealth Group Inc&#8217;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UNH#NYSE">UNH</a>)&nbsp;Optum—for allegedly engaging in unfair and anti-competitive practices that have inflated the list&nbsp;<a target="_blank" href="https://www.benzinga.com/news/large-cap/24/09/40964870/us-federal-trade-commission-sues-cvs-health-cigna-unitedhealths-pharmacy-benefit-managers-for-infl" rel="noreferrer noopener">price of insulin medications</a>.
As per an October report, CVS Health is also considering a major restructuring that could involve separating its&nbsp;retail <a target="_blank" href="https://www.benzinga.com/news/large-cap/24/10/41115344/cvs-health-mulls-split-of-retail-and-insurance-divisions-to-address-financial-challenges-report" rel="noreferrer noopener">and insurance businesses</a>.
These talks with financial advisers explore how a potential breakup would work, although no final decisions have been made yet.
Price Action: At last check on Friday, CVS stock was down 12.30% at $55.87 during the premarket session.
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Guidance

Pharmacy Retailer CVS Health Backs Away From Annual Forecast, Names New CEO

CVS Health Stock Dip: Undervalued And Ready For A Turnaround

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Wall Street Week Ahead

Earnings week ahead: O, PLTR, QCOM, SQ, AMC, PARA, LCID, RIVN, WBD, and more

CVS Health ($CVS), a healthcare company, will release its&nbsp;fiscal Q3 financials on November 6. Wall Street analysts expect the company to repor...

CVS Health (CVS) Q3 Earnings Preview: Here's What to Expect

Wells Fargo analyst Stephen Baxter lowered the firm's price target on CVS Health (CVS) to $60 from $61 and keeps an Equal Weight rating on the shar...

CVS Health price target lowered to $60 from $61 at Wells Fargo

Wells Fargo analyst Steve Baxter maintained a Hold rating on CVS Health (CVS – Research Report) yesterday and set a price target of $60.00. The com...

CVS Health (CVS) Gets a Hold from Wells Fargo

Healthcare services stocks could benefit from Harris win, Oppenheimer says

CVS Health (CVS – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst yesterday. Analyst Erin Wright from Morga...

CVS Health: Strategic Initiatives and Leadership Changes Poised to Drive Turnaround and Future Growth

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Press Releases

FARE and CVS Pharmacy® continue to partner on Teal Pumpkin Project for a more inclusive Halloween

CVS Health to hold third quarter 2024 earnings conference call

CVS Health supporting customers, patients, members and colleagues as Hurricane Milton approaches

Aetna shines in Star Ratings with 88 percent of Medicare Advantage members in 4-star plans or higher for 2025

Contracts

Aetna recommended for new D-SNP contract by the State of Michigan

New CVS Health® report explores ongoing transformation of community pharmacy

Aetna introduces SimplePay Health

CVS Health Appoints David Joyner President and Chief Executive Officer

CVS Health Foundation helps address barriers to care for patients with chronic diseases in Atlanta

Legal

CVS ALERT: Bragar Eagel & Squire, P.C. is Investigating CVS Health Corporation on Behalf of Long-Term Stockholders and Encourages Investors to Contact the Firm

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