Q2 STOCKS TO BUY

CVS Stock on the Rise After Major Hiring Announcement

The stock is still seeing some pressure on the charts, just overhead

Digital Content Manager
Oct 19, 2020 at 10:24 AM
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The shares of CVS Health Corp (NYSE:CVS) are up 0.3% at $59.75, after the pharmaceutical company announced it would hire 15,000 new employees in preparation for a surge in COVID-19 and flu cases during the fall and winter seasons. Over 10,000 of those hired will be full-time and part-time licensed pharmacy technicians who will help dispense medication and administer coronavirus tests. 

Today's announcement has CVS making another run at its 50-day moving average, which has served as a ceiling on the charts since late-August, when the equity went into selloff mode. While the $56 mark saved CVS from collapsing back into its mid-March trough, the stock is still off roughly 19% for the year. 

The majority of analysts covering the security are in favor of the equity. Twelve of those in coverage call it a "buy" or better, compared to four calling it a "hold" or worse. Meanwhile, the 12-month consensus price target of $78.76 is a 31.5% premium to current levels. 

Short sellers, however, have been coming around to the security. Short interest rose 5.5% in the last reporting period. Despite this uptick, the 19.92 million shares sold short make up just 1.5% of the security's available float, or nearly three days at its average pace of trading. 

 

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