{"id":256538,"date":"2025-10-28T12:03:08","date_gmt":"2025-10-28T12:03:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/256538\/"},"modified":"2025-10-28T12:03:08","modified_gmt":"2025-10-28T12:03:08","slug":"amid-omnicares-bankruptcy-is-cvs-health-still-a-buy-ahead-of-q3-earnings-tomorrow","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/256538\/","title":{"rendered":"Amid Omnicare\u2019s Bankruptcy, Is CVS Health Still a Buy ahead of Q3 Earnings Tomorrow?"},"content":{"rendered":"

Retail pharmacy chain operator CVS Health (CVS)<\/a> is set to release its third-quarter fiscal year 2025 financial results tomorrow. Investors will be paying close attention to the report as its beleaguered subsidiary, Omnicare, recently entered Chapter 11 bankruptcy <\/a>protection<\/a> in Texas.<\/p>\n

Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! <\/a> Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.<\/p>\n

What Does Wall Street Expect from CVS Health?<\/p>\n

Wall Street expects the company to report $1.37 per share, rising about 26% from $1.09<\/a> in the same period last year. Analysts also anticipate CVS Health\u2019s revenue will increase by about 4% year-over-year to $98.81 billion,<\/a> up from $95.41 billion.<\/p>\n

However, the expected revenue is below the $98.9 billion CVS reported during the second quarter<\/a>. The figure grew by 8% YoY during that period, with strong performance from the healthcare company\u2019s Pharmacy and Consumer Wellness segment. This segment, which focuses on pharmacy operations, is where Omnicare is housed. <\/p>\n

Omnicare Faces Fraud Controversy<\/p>\n

Omnicare provides pharmaceutical care and consulting to skilled nursing, assisted living, and chronic care institutions. The business was acquired by CVS Health in 2015 for over $10 billion. <\/p>\n

The CVS subsidiary was recently slammed with $949 million in restitution and penalty payments<\/a> by a U.S. district court to settle a case accusing the company of fraudulently billing the U.S. government for wrongfully dispensed prescription medications.\u00a0<\/p>\n

CVS Boosts Business amid Omnicare Bankruptcy<\/p>\n

The challenge comes even as e-commerce giant Amazon (AMZN)<\/a> recently rolled out in-office prescription kiosks<\/a> at select locations hosting its One Medical clinics in Los Angeles. This puts pressure on traditional pharmacy chains such as CVS and Walgreens by offering convenience and tech-driven service.<\/p>\n

However, CVS Health has also made moves to strengthen its business. It recently signed up alongside party supply retailer Party City as one of the first partners<\/a> to deploy California-based food delivery business DoorDash\u2019s (DASH)<\/a> new fulfillment services for third-party sellers. <\/p>\n

At the same time, the healthcare company also expanded its presence in the U.S. by taking over 63 former Rite Aid and Bartell Drugs stores<\/a> in Idaho, Oregon, and Washington. The expansion means the company will be able to serve more than nine million former patients of both pharmacies.<\/p>\n

Is CVS a Good Stock to Buy Now?<\/p>\n

On Wall Street, CVS Health\u2019s shares<\/a> currently boast a Strong Buy rating from analysts, as seen on TipRanks. This is based on 18 Buys and one Hold issued by analysts over the past three months. <\/p>\n

In addition, the average CVS price target<\/a> of $87.50 indicates about 6% upside potential from the current level. Since the start of the year, CVS stock has soared nearly 92%<\/a>, hitting $84 per share during early trading on Tuesday.<\/p>\n

\"\"<\/a><\/p>\n

\"\"<\/a><\/p>\n

See more CVS analyst ratings here.<\/a><\/p>\n

Disclaimer & Disclosure<\/a>Report an Issue<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Retail pharmacy chain operator CVS Health (CVS) is set to release its third-quarter fiscal year 2025 financial results…\n","protected":false},"author":2,"featured_media":256539,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[59],"tags":[97,252,253],"class_list":["post-256538","post","type-post","status-publish","format-standard","has-post-thumbnail","category-health-care","tag-health","tag-health-care","tag-healthcare"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/256538","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=256538"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/256538\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/256539"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=256538"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=256538"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=256538"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}