Tech Stocks Rebound, Broadcom Rating Upgraded
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 06 2026
0mins
Should l Buy CVS?
Source: CNBC
- Market Rebound: After a tough week, tech stocks rebounded on Friday, although Amazon pulled back post-earnings, with the S&P 500 and Nasdaq still lower for the week, indicating ongoing volatility and investor focus on the tech sector.
- Surge in Capital Expenditures: Meta's capital expenditures reached $72.22 billion for the full year 2025, with plans to invest up to $135 billion in 2026, reflecting strong demand for AI infrastructure that is expected to boost earnings and backlogs for various companies.
- Broadcom Rating Upgrade: Given the capital expenditure plans from Alphabet and Meta, Broadcom's rating has been upgraded to buy, with expectations that it will exceed earnings estimates, and the current stock pullback presents an attractive entry point, showcasing confidence in the semiconductor sector.
- Economic Data Focus: Important economic data will be released next week, including the January employment report, with economists expecting nonfarm job gains of about 70,000 and an unchanged unemployment rate of 4.4%, as the market remains sensitive to changes in the employment landscape.
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Analyst Views on CVS
Wall Street analysts forecast CVS stock price to rise
17 Analyst Rating
16 Buy
1 Hold
0 Sell
Strong Buy
Current: 77.930
Low
91.00
Averages
96.71
High
105.00
Current: 77.930
Low
91.00
Averages
96.71
High
105.00
About CVS
CVS Health Corporation is a health solutions company. The Company's segments include Health Care Benefits, Health Services, Pharmacy & Consumer Wellness and Corporate/Other. Health Care Benefits segment offers a broad range of traditional, voluntary and consumer-directed health insurance products and related services, including medical, pharmacy, dental and behavioral health plans, PDPs and Medicaid health care management services. Health Services segment provides a full range of pharmacy benefit management (PBM) solutions through its CVS Caremark operations and delivers health care services in its medical clinics, virtually, and in the home. Pharmacy & Consumer Wellness segment dispenses prescriptions in its CVS Pharmacy retail locations and through its infusion operations, provides ancillary pharmacy services including pharmacy patient care programs, diagnostic testing and vaccination administration, and sells a wide assortment of health and wellness products and general merchandise.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- 2026 Financial Guidance: CVS reaffirmed its adjusted earnings guidance for 2026 at $7.00-$7.20 per share, slightly below the consensus of $7.17, indicating confidence in future growth despite facing market challenges.
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See More
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- Position Changes: Among these funds, 3 increased their CVS positions while 4 decreased them, suggesting a divergence in market sentiment that could impact stock price volatility.
- Aggregate Share Growth: The total shares held by hedge funds in CVS rose to 276,922,200 as of December 31, 2025, up from 268,351,485 on September 30, 2025, reflecting an increase of 8,570,715 shares or approximately 3.19%, indicating overall bullish sentiment.
- Investor Attention Rising: With the increase in CVS holdings, investors may reassess its market performance, particularly as CVS could emerge as a stock of interest within hedge fund investment strategies.
See More
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- Share Acquisition: Kiltearn Partners LLP purchased an additional 264,600 shares of LKQ in Q4 2025, with an estimated transaction value of $7.98 million, indicating confidence in the auto parts sector.
- Increased Stake: This acquisition raised Kiltearn's stake in LKQ to 3.24%, making it the 12th largest holding in their portfolio, which underscores its significance despite not being in the top five.
- Financial Performance: As of February 13, 2026, LKQ shares were priced at $34.10, down 8.6% year-over-year, with net income falling by 39.1% over the past three years, highlighting the challenges the company faces.
- Strategic Review: Following the divestiture of its self-service segment last year, LKQ anticipates a $25 million increase in 2025 operating cash flow, indicating a strategic review aimed at maximizing shareholder value.
See More
Healthcare Sector Earnings Recap: Key Insights
- Earnings Reporting Status: This week, 15 healthcare companies reported earnings, bringing the total to 50 out of 60, indicating a robust reporting season despite a marginal decline in the Health Care Select Sector SPDR Fund ETF (XLV) by 0.20%.
- Earnings and Revenue Performance: Among the reporting companies, 4 missed earnings estimates while 11 exceeded consensus, with all companies reporting better-than-expected revenue, showcasing the sector's resilience and growth potential.
- Gilead Sciences Performance: Gilead Sciences (GILD) reported earnings per share of $1.86 and revenue of $7.93 billion, surpassing expectations; however, its 2026 non-GAAP EPS guidance fell short of market estimates, leading to a decline in after-market trading.
- CVS Health Outlook: CVS Health (CVS) reported Q4 earnings of $1.09 per share and revenue of $105.69 billion, beating forecasts, but its unchanged full-year earnings outlook led to a drop in share price, reflecting market caution regarding future growth prospects.
See More
Market Rebounds as Eli Lilly Prepares for New Drug Launch
- Market Rebound: After a volatile week, the S&P 500 showed signs of recovery on Friday, although it still faced losses over the past five trading days, indicating a renewed investor confidence in the economic outlook.
- Inflation Data Impact: The cooler-than-expected January consumer price index contributed to a drop in bond yields and increased expectations for interest rate cuts later this year, further bolstering investor sentiment.
- Eli Lilly's Drug Inventory: Eli Lilly has built up $1.5 billion worth of pre-launch inventory for its GLP-1 obesity pill orforglipron, significantly up from $550 million last year, indicating strong demand expectations from the market.
- Upcoming Earnings Reports: Approximately 50 S&P 500 companies are set to report earnings next week, including Palo Alto Networks and Texas Roadhouse, with the market closely watching these reports for their implications on the broader economy.
See More
CVS Health Reports Strong Earnings, Optimistic 2026 Outlook
- Strong Sales Performance: CVS Health reported sales of $105.69 billion, exceeding the market consensus of $103.59 billion, demonstrating robust performance in a competitive healthcare market and boosting investor confidence.
- Earnings Improvement: Adjusted earnings per share reached $1.09, surpassing analyst estimates of $0.99, although down from $1.19 a year ago, reflecting the company's efforts in cost control and operational efficiency.
- 2026 Financial Guidance: CVS reaffirmed its adjusted earnings guidance for 2026 at $7.00-$7.20 per share, slightly below the consensus of $7.17, indicating confidence in future growth despite facing market challenges.
- Cash Flow Adjustment: The company revised its cash flow from operations guidance down to at least $9.0 billion from a previous estimate of $10.0 billion, reflecting a cautious approach in the current economic environment while maintaining flexibility for future investments and growth.
See More
Biotech Sector Faces FDA Turmoil
- FDA Chaos Impacts Approvals: The biotech sector had a strong performance in 2025, with the XBI index outperforming NVIDIA, yet ongoing chaos at the FDA may lead to longer drug approval cycles, increasing investment risks and affecting industry confidence.
- Executive Warns of Industry Risks: Former FDA oncology head Richard Pasdur warned at the JP Morgan conference that the breach between political appointees and drug reviewers could lead to inconsistent approval standards, creating uncertainty for biotech companies.
- Gene Therapy Approval Delays: Regenxbio's expected approval for a Hunter syndrome drug on February 8 is now unlikely due to a tumor found in a patient during clinical trials, indicating stricter FDA oversight on gene therapies and prompting investor caution.
- Twist Bioscience Shows Recovery: Twist Bioscience reported $104 million in revenue for Q1, despite remaining unprofitable, but reduced cash burn indicates a sustainable growth trend, attracting investor interest amid the biotech downturn.
See More
Analysis of CVS Health Corporation's 13F Holdings
- Holding Analysis: As of the latest 13F filings on December 31, 2025, CVS Health Corporation (CVS) was held by 9 hedge funds, indicating increased market interest in the stock.
- Position Changes: Among these funds, 3 increased their CVS positions while 4 decreased them, suggesting a divergence in market sentiment that could impact stock price volatility.
- Aggregate Share Growth: The total shares held by hedge funds in CVS rose to 276,922,200 as of December 31, 2025, up from 268,351,485 on September 30, 2025, reflecting an increase of 8,570,715 shares or approximately 3.19%, indicating overall bullish sentiment.
- Investor Attention Rising: With the increase in CVS holdings, investors may reassess its market performance, particularly as CVS could emerge as a stock of interest within hedge fund investment strategies.
See More
