CVS Health downgraded to Hold due to political risks, declining cash flow, and industry battles despite strong Q4 sales and a recent >10% stock rally. See more.

CVS Health reported a smaller-than-expected drop in fourth-quarter profit on Wednesday as the pace of medical cost increases slowed at the healthcare conglomerate and revenues jumped in its pharmacy business.

CVS Health investors were breathing a big sigh of relief Wednesday after the healthcare services behemoth reported better-than-expected quarterly earnings. Shares were up sharply on hopes that the company’s atrociously bad 2024 was now firmly in the rearview,