CVS Health trades at a discount with strong Q2 growth and buyback potential

CVS Health is currently trading at a discounted forward P/E of 12x compared to its peers, despite showing strong business momentum. In Q2 2026, the company reported a 7% year-over-year revenue increase to $106 billion and a 35% rise in adjusted operating income, indicating improved earnings power. Growth in specialty pharmacy, GLP-1 products, and margin recovery in Aetna helped offset challenges from rising medical costs and regulatory pressures. The analyst maintains a 'Buy' rating, highlighting undervaluation, improving fundamentals, and the likelihood of resumed share buybacks once leverage normalizes.