Shares of pharmacy and insurance giant CVS Health (CVS 7.28%) were soaring 8.2% higher as of 11:32 a.m. ET on Tuesday. Part of the gain undoubtedly related to the overall market's rebound following a steep sell-off on worries about the potential impact of tariffs. However, CVS Health's corporate update on Tuesday was likely a factor behind the stock's jump, too.
CVS Health announced that Brian Newman will be the new CFO effective April 21, 2025. Newman is coming to CVS after serving as CFO for United Parcel Service. CVS Health's current CFO, Tom Cowhey, will move into a role as strategic advisor to CEO David Joyner on May 12, 2025. The company also named Amy Compton-Phillips as its new chief medical officer. She most recently served as chief physician executive of healthcare performance improvement company Press Ganey.
Sometimes changes in the executive ranks provide a catalyst for a stock, especially when the moves involve CEOs or CFOs. In this case, though, I don't think the announcements of Newman as CFO or Compton-Phillips as chief medical officer were the key drivers of CVS Health's nice gain today. Both have solid experience and will likely be great additions to CVS Health. However, the most important news in CVS Health's update wasn't related to leadership changes, in my opinion.
CVS Health mentioned in its update, "Based on year-to-date results through February, the Company currently expects financial results will meet or exceed its previously issued guidance for full year 2025." This indicates that business is off to a pretty good start this year -- the kind of news investors really like to hear.
After today's rebound, CVS Health stock is up more than 50% year to date. Is the stock a buy? Income investors could like the stock with its forward dividend yield of 3.85%. Value investors could be attracted to CVS as well, with shares trading below 11 times forward earnings.
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