CVS · CVS HEALTH CORPORATION

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CVS Health Corporation provides health solutions in the United States. The company operates through Health Care Benefits, Health Services, and Pharmacy & Consumer Wellness segments. The Health Care Benefits segment offers traditional, voluntary, and consumer-directed health insurance products and related services, including medical, pharmacy, dental and behavioral health plans, medical management capabilities, Medicare Advantage and Medicare Supplement plans, PDPS and Medicaid health care management services.

Close · 3M

+24.71%

Held by 1 AI ETF

PQUS0.130%

as of Sep 1

Signal performance

Each tracked ETF's moves on this stock, grouped by fund. Returns are measured from the signal date to the latest close — hypothetical, no commissions or slippage.

Buy signals4

Win rate75% (3/4)

Avg buy return+0.28%

PQUSnow 0.130% of fund1 signal

PQUS · Weight decrease · 2d

weight 0.160% → 0.140% (-0.020 pp)·stock down 6.9% in the 30 days before

Aug 7·entry $95.70·now $97.20

+1.57%

since Aug 7

AIEQno longer held8 signals

AIEQ · Exit · 1d

weight 0.880% → 0 (exited)·stock down 7.4% in the 30 days before

Sep 1·entry $97.60·now $97.20

-0.41%

since Sep 1

AIEQ · Weight increase · 2d

weight 0.880% → 0.900% (+0.020 pp)·stock down 8.8% in the 30 days before

Aug 15·entry $94.01·now $97.20Drifting

+3.39%

since Aug 15

AIEQ · Weight decrease · 2d

weight 0.910% → 0.880% (-0.030 pp)·stock down 10.8% in the 30 days before

Aug 12·entry $94.72·now $97.20

+2.62%

since Aug 12

AIEQ · Weight decrease · 2d

weight 0.710% → 0.680% (-0.030 pp)·stock down 0.4% in the 30 days before

Jul 31·entry $104.43·now $97.20

-6.92%

since Jul 31

AIEQ · Weight increase · 2d

weight 0.670% → 0.690% (+0.020 pp)·stock up 6.7% in the 30 days before

Jul 19·entry $107.61·now $97.20Fresh

-9.67%

since Jul 19

AIEQ · Sudden change · 1d

weight 0.230% → 0.670% (+0.440 pp)·stock up 15.7% in the 30 days before

Jul 1·entry $104.81·now $97.20

-7.26%

since Jul 1

AIEQ · Weight increase · 2d

weight 0.200% → 0.220% (+0.020 pp)·stock up 10.4% in the 30 days before

Jun 7·entry $97.08·now $97.20Fresh

+0.12%

since Jun 7

AIEQ · New entry · 1d

weight 0 → 0.200% (new)·stock up 8.4% in the 30 days before

May 30·entry $90.62·now $97.20Drifting

+7.26%

since May 30

Sell signals show what the stock did after the AI exited. A negative number means the AI's exit was well-timed.

Buffett-style framework

Fails the frameworkas of Aug 16

AI ETF AIEQ shows a recent trend of increasing its weight in CVS, suggesting an accumulation of the stock. This action contrasts with the framework's 'Fail' verdict, which is driven by CVS Health's insufficient financial health, particularly its low Return on Equity. The AI's move suggests a potential focus on other metrics or a different investment horizon not aligned with this framework's strict profitability criteria.

Circle of CompetenceCVS's diversified healthcare services, including retail pharmacy, PBM, and health insurance, offer sufficiently stable unit economics to project cash flows over a ten-year horizon.
Economic MoatCVS possesses a durable economic moat derived from its vast scale in pharmacy and PBM operations, brand recognition, and the switching costs associated with its integrated healthcare service offerings.
ManagementThe provided data is insufficient to assess management's candor, capital allocation discipline, or skin in the game.
Financial HealthThe reported Return on Equity (ROE) of 6.41% falls significantly below the required 10-year average of 15% with no year below 10%, indicating a failure in financial health based on this framework.
Margin of SafetyWithout a detailed intrinsic value calculation and projected owner earnings, it is not possible to determine if there is a defensible margin of safety at the current price.

The analysis of CVS Health Corporation finds that while the company operates within a reasonably predictable circle of competence and possesses a strong economic moat due to its scale and integrated services, it notably fails on financial health. The reported Return on Equity falls significantly short of the framework's demanding criteria, indicating suboptimal capital efficiency. Consequently, despite strengths in business predictability and competitive advantage, the company does not qualify as a suitable investment under this value-investing framework due to its financial performance.

Educational interpretation generated by AI applying frameworks Warren Buffett documented in his shareholder letters and other public writings. Not a statement by Mr. Buffett or Berkshire Hathaway, and not investment advice.