From Yahoo Finance: 2025-05-11 17:23:00

President Trump’s healthcare-focused executive order aims to revamp Medicare’s ability to negotiate drug prices, a win for the sector. Drug makers lobby for delayed eligibility timelines for small-molecule and biotech drugs. The order also targets reducing healthcare costs and may lead to sector-specific tariffs.

The executive order directs collaboration with Congress to change the law allowing Medicare to negotiate drug prices. Drug makers fear negotiation will stifle innovation and rally against eligibility timelines. The law currently allows negotiation after 13 years for biotech drugs and 9 years for capsules and pills.

CVS Health Corporation (NYSE: CVS) ranks fifth on the best-performing healthcare stocks list. Analysts project a positive trajectory for CVS, with potential for upward guidance adjustments. The company operates in healthcare benefits, pharmacy services, and consumer wellness, including a large health insurer subsidiary, Aetna.

Analysts maintain a buy rating for CVS Health Corporation. The company’s Pharmacy Benefit Management segment is expected to outperform, with positive trends in healthcare benefits costs. The company’s fiscal Q1 2025 results show a promising turnaround, supporting a positive trajectory for CVS.

CVS Health Corporation (NYSE: CVS) is a health solutions company operating in various segments. Analysts favor the company for its positive trajectory, with potential for upward guidance adjustments. CVS ranks fifth on the best-performing healthcare stocks list, with promising trends in healthcare benefits cost stabilization and pharmacy management.

Read more: Is CVS Health Corporation (CVS) the Best Performing Healthcare Stock to Buy Now?