Is CVS Health Corporation (CVS) the Best Telehealth Stock
to Buy Now?
Noor Ul Ain Rehman
April 22, 2025 • 6 min read
In This Article:
StockStory Top Pick CVS -6.65%
We recently published a list of 10 Best Telehealth Stocks to Buy Now. In this
article, we are going to take a look at where CVS Health Corporation (NYSE:CVS)
stands against other best telehealth stocks to buy right now.
Overview of the American Telehealth Industry
According to Grand View Research, the telehealth market size in the US was
valued at $42.54 billion in 2024. It is expected to grow at a notable compound
annual growth rate of 23.8% between 2025 and 2030. Some of the primary factors
supporting this growth include the rising demand for remote healthcare services,
large-scale penetration of connected home services, and high internet usage. In
addition, the global adoption of smartphones, advancements in technology, and a
surge in government initiatives to develop telehealth programs are also supporting
market growth.
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Since the cost of in-person healthcare provision is increasing in the country,
telehealth presents a significant opportunity in the healthcare sector. According
to McKinsey, around $250 billion of the present US healthcare spending can be
virtualized. This includes training for medical professionals, regular check-in
appointments for chronic diseases, psychiatric care, and more, all administered
and accessed through each individual’s preferred device.
READ ALSO: 10 Best Mid Cap Biotech Stocks to Buy and 12 Best Diagnostics
Stocks to Invest In Right Now.
Are Healthcare Stocks a Safe Haven Amid Tariff Turmoil?
Some experts view medical, healthcare, and big pharma stocks as immune from
trade carnage, making them a safe haven amid the uncertainty brought about by
Trump’s tariffs. Since Trump’s tariffs and macroeconomic uncertainties are
causing significant market volatility, we discussed the potential of healthcare
stocks as a safe haven amidst the ongoing turmoil in a recently published article
on the 10 Best Medical Stocks to Buy According to Billionaires. Here is an
excerpt from the article:
On April 8, Mizuho Securities America healthcare sector strategist
Jared Holz opined that managed care, particularly the government-
centric names, are somewhat safe as they are insulated from
tariffs as US-based companies. In fact, the economic slowdown is
actually beneficial for them as they want less utilization and less
patience through the system, which is how they typically beat
numbers. He said that managed care is having a good day, and
investors might think about owning some companies in the sector.
Our Methodology
We sifted through stock screeners, financial media reports, and ETFs to compile a
list of 25 telehealth stocks and chose the top 10 most popular among hedge funds
as of Q4 2024. The list is ordered in ascending order of hedge fund sentiment. We
sourced the hedge fund sentiment data from Insider Monkey’s database.
Search for
1. NO.1 AI STOCK TO BUY RIGHT NOW ›
2. JIM CRAMER'S TOP 5 STOCKS TO BUY ›
Why are we interested in the stocks that hedge funds pile into? The reason is
simple: our research has shown that we can outperform the market by imitating
the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy
selects 14 small-cap and large-cap stocks every quarter and has returned 275%
since May 2014, beating its benchmark by 150 percentage points (see more details
here).
CVS Health Corporation (CVS): Among Recent Activist Investor Campaigns
A row of shelves in a retail pharmacy, demonstrating the variety of drugs and over-
the-counter products.
CVS Health Corporation (NYSE:CVS)
Number of Hedge Fund Holders: 74
CVS Health Corporation (NYSE:CVS) is a health solutions company that operates
in four segments: healthcare benefits, health services, pharmacy & consumer
wellness, and corporate/other. The company provides affordable, high-quality, and
connected care solutions to its customers whenever and wherever they require it,
including at-home health services and virtual services through their tablets,
computers, or phones. Apart from being a prominent pharmacy chain, the
company is one of the largest health insurers in the United States through its
Aetna subsidiary’s operations, ranking it second on our list of the best telehealth
stocks to invest in.
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CVS Health Corporation (NYSE:CVS) has a diversified business, and its solid
market presence across various segments gives it a competitive edge. In recent
years, it has focused on primary care, expanding its portfolio through its Cordavis
subsidiary, which markets and develops biosimilar drugs.
While the company’s future performance under a new CEO is uncertain, its total
revenue for fiscal Q4 2024 increased to $97.7 billion, reflecting a 4.2% growth
compared to the prior year and bringing optimism to its operations. Although the
company has delivered underwhelming results in the past, it is undergoing several
recent management changes and initiatives that are expected to bring it back on
track.
On April 15, Morgan Stanley raised the firm’s price target on CVS Health
Corporation (NYSE:CVS) to $80 from $68, keeping an Overweight rating on the
shares. Patient Capital Management stated the following regarding CVS Health
Corporation (NYSE:CVS) in its Q4 2024 investor letter:
“CVS Health Corporation (NYSE:CVS) struggled throughout the
year following a number of disappointments related to their
Medicare Advantage business. While this had a negative impact on
the near-term financials, the issues are well understood, and
changes are already being made for the 2025 program. We see a
clear pathway to improving margins throughout 2025 in all areas of
the business. Furthermore, the company has upgraded their
management team promoting David Joyner to CEO and hiring
former UnitedHealth Group executive Steven Nelson to run the
managed care business. On a longer-term basis, we continue to
think CVS has an attractive combination of assets owning a
healthcare benefits business (Aetna), a pharmacy-benefits
manager (Caremark), an in-home evaluation business (Signify
Health) and in-home primary care business (Oak Street Health)
supporting the industry transition to a value-based care model. As
the company works to implement the turnaround, the company has
an attractive dividend yield of 5.8%.”
Overall, CVS ranks 2nd on our list of the best telehealth stocks to buy right now.
While we acknowledge the potential for CVS as an investment, our conviction lies
in the belief that some AI stocks hold greater promise for delivering higher returns
and doing so within a shorter time frame. There is an AI stock that went up since
the beginning of 2025, while popular AI stocks lost around 25%. If you are looking
for an AI stock that is more promising than CVS but trades at less than 5 times its
earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now
According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
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