CVS Health Corporation (NYSE: CVS) ended the Christmas Eve session higher, then eased modestly after hours as trading thinned into the holiday. CVS closed at $79.12, up 1.38%, in a shortened session that ended at 1:00 p.m. Eastern. In after-hours trading, the stock was $79.01 at 5:00 p.m. Eastern, down about 0.14% from the close. [1]
Because U.S. markets are closed on Thursday, Dec. 25, 2025 (Christmas Day), the “next open” investors are preparing for is Friday, Dec. 26, 2025. [2]
Below is what moved CVS into the close, the most relevant CVS-related headlines that hit on Dec. 24, and the core forecasts and catalysts to keep in view before trading resumes.
Where CVS Stock Stands Heading Into Friday’s Reopen
Even though CVS outperformed on the day, liquidity was notably light—a major caveat on any holiday-week price signal.
- Close (Dec. 24, 1:00 p.m. ET): $79.12 (+1.38%) [3]
- After hours (Dec. 24, 5:00 p.m. ET): $79.01 (-0.14% from close) [4]
- Volume: ~1.8 million shares, far below typical levels [5]
- 52-week range: $43.65 – $85.15 (CVS remains below the high set Oct. 29, 2025) [6]
Bottom line: this was a “thin tape” session—moves can look clean on a chart but be driven more by holiday positioning than fresh fundamental conviction.
Why CVS Rose Today: The Market’s “Santa Rally” Tone Did Most of the Work
CVS’s advance came on a day when U.S. equities broadly drifted to fresh records in holiday-shortened, low-volume trading. The S&P 500 and Dow finished at record levels, and overall NYSE share volume was unusually light—typical of Christmas Eve when many institutional desks are partially staffed. [7]
That backdrop matters for CVS because it has been trading lately as a “turnaround + defensives” hybrid: it can participate in risk-on days while still attracting dividend and value buyers when growth stocks wobble.
The CVS Headlines That Mattered on Dec. 24
While there wasn’t a new CVS earnings release or guidance change today, two legal/regulatory storylines surfaced on Dec. 24 that investors should keep on the radar.
1) Philadelphia lawsuit targets PBMs and insulin pricing—CVS Caremark named
Local and official reports show the City of Philadelphia filed suit (Dec. 23) against several PBMs and drug manufacturers, naming CVS Caremark alongside Express Scripts and OptumRx, as well as insulin makers. The city alleges an “insulin pricing scheme” and is seeking damages and court relief; CVS Caremark said manufacturers set list prices and stated it intends to vigorously defend the suit. [8]
Why it matters for CVS stock: Caremark is a critical earnings engine. Any lawsuit that keeps PBM business practices in the spotlight can affect sentiment—even if the financial impact is uncertain early on.
2) A major False Claims Act (FCA) judgment/penalties fight remains a live overhang
A Bloomberg Law analysis published Dec. 24 highlighted CVS among the companies expected to continue challenging large FCA judgments into 2026. In the CVS-related matter described, CVS is contesting penalties tied to Omnicare, including discussion of a $165 million penalty issue and constitutional/excessiveness arguments that could be raised on appeal. [9]
Why it matters: investors have rewarded CVS for “operational momentum,” but the market still discounts companies facing headline legal risk—especially when cases involve government programs and billing/dispensing compliance.
3) A “law firm investigation” release hit the wires (treat as noise unless it becomes a filed case)
A widely syndicated release circulated on Dec. 24 stating a law firm was “investigating claims” involving Aetna Medicare Advantage plan prior-authorization/denial practices and the use of an AI program. These announcements are common and don’t necessarily signal new company disclosure, but they do reflect the broader policy scrutiny around AI in utilization management. [10]
The Forecasts Investors Are Actually Trading: CVS’s 2026 Targets and Turnaround Math
To understand CVS stock into the next open, the most important “forecast” isn’t a one-day technical call—it’s the framework CVS itself laid out earlier this month and the way analysts are benchmarking progress against it.
CVS’s official guidance and longer-term targets (as of its Dec. 9 Investor Day)
CVS published updated guidance and introduced 2026 targets that investors have treated as a credibility test for the turnaround:
- 2025 Adjusted EPS:$6.60 to $6.70 (raised) [11]
- 2026 Adjusted EPS:$7.00 to $7.20 [12]
- 2026 GAAP diluted EPS:$5.94 to $6.14 [13]
- 2026 operating cash flow:at least $10.0B [14]
- Long-term goal:mid-teens Adjusted EPS CAGR through 2028 [15]
- Strategic thread: an “AI-native” engagement platform and a more integrated consumer experience [16]
Reuters’ coverage of that Investor Day framed the 2026 outlook as above Wall Street estimates at the time and pointed to CVS’s ongoing turnaround narrative. [17]
What that means heading into the next session: traders tend to treat pullbacks as “buyable” only as long as CVS continues to look on track for Aetna margin recovery and stable performance at Caremark and the pharmacy segment.
What Analysts Are Projecting Right Now: Rating, Target, and the “Gap” the Market Sees
Aggregated analyst data shows a generally bullish stance into year-end:
- Consensus rating: “Strong Buy” (per an 18-analyst aggregation) [18]
- 12-month price target:$92.11 (about +16% above current levels) [19]
- Next expected earnings date (estimate):Feb. 11, 2026 [20]
Important caveat: earnings dates can shift, and “consensus” can change quickly after new notes—especially after any legal or regulatory headline tied to PBMs or Medicare-related businesses.
What to Know Before the Market Opens “Tomorrow” (Next Session: Friday, Dec. 26)
1) Know the schedule: Christmas closure, then normal trading Friday
The NYSE confirmed an early close at 1:00 p.m. ET on Dec. 24 and market closure on Dec. 25 for Christmas. Trading resumes Friday, Dec. 26. [21]
Translation for CVS: premarket price discovery on Dec. 26 can be jumpy because liquidity is still often thin the day after a holiday.
2) Watch for follow-through (or fade) after a low-volume pop
CVS beat the market on Dec. 24, but the move happened on very light volume. [22]
On Friday, many traders will look for:
- whether CVS can hold the $79 area in the first hour, and
- whether volume normalizes enough to make price action meaningful.
3) The main scheduled macro datapoint Friday is limited
On the New York Fed calendar, Dec. 26 shows the New York Fed Staff Nowcast (11:45 a.m. ET) as a listed release. There aren’t the usual “big ticket” items (jobs, CPI) on deck that morning. [23]
That can make company-specific headlines (PBM litigation updates, Medicare-related policy chatter, ratings notes) feel larger than usual.
4) Seasonal tailwind chatter is likely—but don’t overtrade it
MarketWatch noted that Dec. 26 has historically been one of the most consistently positive trading days for the S&P 500 and is part of the “Santa Claus rally” window. [24]
That’s a sentiment factor, not a CVS-specific catalyst—but it can influence risk appetite at the open.
5) The two CVS “headline traps” to monitor overnight
If you’re scanning news before Friday’s open, two categories tend to move CVS fastest:
- PBM legal/regulatory updates (like the Philadelphia suit coverage and any broader PBM reform headlines) [25]
- False Claims Act / Medicare-related litigation developments tied to Caremark/Omnicare-era issues [26]
The Setup in One Sentence
CVS heads into the next market open with positive momentum from a holiday-thin rally, a slightly softer after-hours print, and an investor narrative still anchored on 2026 earnings/cash-flow targets—but with PBM and FCA litigation headlines as the most immediate “surprise risk” to watch on Dec. 26. [27]
This article is for informational purposes only and is not investment advice.
References
1. stockanalysis.com, 2. www.nyse.com, 3. stockanalysis.com, 4. stockanalysis.com, 5. www.marketwatch.com, 6. stockanalysis.com, 7. apnews.com, 8. www.nbcphiladelphia.com, 9. news.bloomberglaw.com, 10. www.globenewswire.com, 11. www.cvshealth.com, 12. www.cvshealth.com, 13. www.cvshealth.com, 14. www.cvshealth.com, 15. www.cvshealth.com, 16. www.cvshealth.com, 17. www.reuters.com, 18. stockanalysis.com, 19. stockanalysis.com, 20. stockanalysis.com, 21. www.nyse.com, 22. www.marketwatch.com, 23. www.newyorkfed.org, 24. www.marketwatch.com, 25. www.nbcphiladelphia.com, 26. news.bloomberglaw.com, 27. stockanalysis.com
