CVS Health's stock has climbed almost 50% in 2025, marking a significant turnaround for the company. This impressive increase follows previous concerns raised by market analyst Jim Cramer, who had described the company's balance sheet as troubled due to difficulties in the healthcare sector.
The increase in stock value was bolstered by CVS Health's release of its fourth-quarter and full-year 2024 earnings report, which exceeded analyst expectations. The company's solid financial performance played a key role in its stock recovery, despite ongoing challenges, such as competition from non-traditional retailers and rising medical costs. According to Insider Monkey, CVS Health's insurance arm Aetna has demonstrated notable resilience, contributing to this positive outcome.
Recent leadership changes have also been a focal point for CVS's strategy in addressing market challenges. Ed DeVaney's appointment to lead CVS Caremark and David Joyner's promotion to CEO mark significant shifts in the company's management. Cramer characterizes CVS Health as a comeback story, highlighting its improved health insurance segment as part of a broader trend where sectors beyond technology, including healthcare, are rising in prominence in 2025.