CVS Stock Soars as Weight Loss Program Delivers Impressive Results

CVS Health Corp. (CVS) is flashing a bullish signal as it completes a Golden Cross — an event where the 50-day simple moving average (SMA) rises above the 200-day SMA. With the stock up over 51% year to date and continuing to trade above key moving averages, technicals suggest further upside. Chart created using Benzinga Pro

Adding to investor enthusiasm, CVS's weight management program has delivered an average 15% weight loss for participants while cutting costs by 26%. The program, which integrates GLP-1 medications with personalized nutrition plans, has been rolled out to 3.5 million members. CVS stock has been riding this wave of positive news and strong technicals. The golden cross suggests continued bullish momentum, though with RSI creeping higher, short-term volatility could emerge. If buying pressure remains, CVS could see further gains in the coming weeks.

Several technical signals confirm CVS stock's strong uptrend:

1. Golden Cross Formation: The 50-day SMA ($57.86) has officially crossed above the 200-day SMA ($57.72), reinforcing a bullish outlook.
2. Momentum Stays Strong: CVS stock trades above its eight-day, 20-day, and 50-day SMAs, confirming sustained buying pressure.
3. Moving Average Convergence/Divergence (MACD) Indicator: At 2.01, the MACD remains in bullish territory, signaling strong upward momentum.
4. Relative Strength Index (RSI): The RSI at 62.46 is nearing overbought territory, indicating that CVS stock remains in a strong trend, though some profit-taking could occur.

CVS's weight management program has shown significant results, with participants achieving an average weight loss of more than 15% and a 26% reduction in weight-loss drug costs. This success has been particularly notable among existing anti-obesity medication users, who nearly doubled their pre-program weight loss while working with program clinicians on diet and lifestyle. These outcomes have been well-received by investors, contributing to a bullish outlook for CVS stock. For instance, the stock has seen a 51% increase year to date, and technical indicators such as the Golden Cross formation and strong momentum suggest further upside potential. The Relative Strength Index (RSI) at 62.46 indicates that CVS stock remains in a strong trend, though some profit-taking could occur.

The long-term implications for CVS's financial health are also promising. The program's success in reducing drug costs and improving health outcomes for participants could lead to sustained cost savings and increased customer satisfaction. As of February 1, 2025, the program is available to over 3.5 million CVS Caremark plan members, indicating a significant market reach. The program's integration into existing pharmacy benefits and its ability to deliver best-in-class results, such as an average 20% weight loss for those with moderate success prior to enrollment, suggest that it could become a key differentiator for CVS in the competitive healthcare market. Additionally, the program's high satisfaction rate, with 92% of participating plan members expressing satisfaction after six months, further supports its potential for long-term financial success.