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CVS Health (CVS) Expands In-Home Diagnostic Care With New Test
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CVS Health, Inc. (CVS - Free Report) company — Signify Health — recently launched a new heart arrhythmia test. The addition of new test expands the company’s Diagnostic and Preventive Services offering.
It is worth mentioning that Atrial fibrillation (AFib) is on the rise among seniors in the United States. Early detection in the home can help mitigate symptoms and more severe complications.
The latest launch will bolster CVS Health’s Services segment.
More on the News
People who have undiagnosed heart arrhythmias suffer from symptoms such as chest pain, rapid and irregular heartbeat, and shortness of breath, as well as other high-risk conditions, including stroke and diabetes.
Through the new launch, Signify members who are at risk for an arrhythmia are identified, and then its clinical teams will test for contraindications. Members will be asked to wear a continuous ECG patch, which tracks continuous cardiac activity. After 14 days of wear, the patch is sent to a cardiologist for evaluation to determine whether the member has an arrhythmia.
Screening for heart arrhythmias with the Continuous ECG patch can enhance the member experience and promote better results. According to studies, 94% of people find the patch more pleasant to wear than a traditional monitor and a 14-day ECG is twice as effective.
New Test Launch to Enhance Health Outcome
Early identification of cardiac arrhythmias is essential for facilitating therapy aimed at reducing the risk of complications such as heart failure or stroke. To help promote an early response and lower the risk of another cardiovascular incident, Signify Health created a proactive approach. Traditional methods of arrhythmia testing are expensive, time-consuming, require many doctor visits and are not optimal for members.
Image Source: Zacks Investment Research
With the addition of this test, Signify Health's portfolio of in-home services that promote early identification, diagnosis and treatment of the most common illnesses affecting people's health is now more comprehensive. Signify Health hopes to improve health outcomes by connecting health plan members to high-value healthcare providers with this new product, which will hopefully increase access to care.
Industry Prospects
Per a report by Polaris Market Research, the global arrhythmia market was valued at $6.39 billion in 2021 and is expected to witness a CAGR of 6.8% by 2030. The expansion of the industry is being driven by factors such as the increasing number of cases of lifestyle choices like smoking, excessive alcohol consumption and obesity (which renders a person more prone to cardiac arrhythmias) and increasing patient awareness levels.
Progress Within Healthcare Offering
Signify Health continues to demonstrate the value of its in-home capabilities for all multi-payer Medicare Advantage partners. Signify completed 649,000 in-home evaluations in the reported quarter, up 20% year over year. Signify generated revenue growth of 39% year over year in the quarter. Among its Aetna customers, CVS Health is broadening its addressable market by utilizing Signify’s strong capabilities in other products, including individual exchange and Medicaid.
The company has been removing barriers to digital adoption and making it easier for customers to access the services they seek, such as pharmacy refills and advanced scheduling for immunizations online. In the fourth-quarter update, management noted that it has more than 55 million CVS Health customers engaged in its digital offerings. The company sees tremendous opportunities to expand engagement with customers across CVS Health through its multi-payer capabilities and vast consumer reach.
Price Performance
In the past six months, CVS has gained 14.8% compared with the industry’s rise of 10.2%.
Zacks Rank and Key Picks
CVS Health currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space are Stryker Corporation (SYK - Free Report) , Cencora, Inc. (COR - Free Report) and Cardinal Health (CAH - Free Report) .
Stryker, carrying a Zacks Rank #2, reported a fourth-quarter 2023 adjusted EPS of $3.46, beating the Zacks Consensus Estimate by 5.8%. Revenues of $5.8 billion outpaced the consensus estimate by 3.8%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stryker has an estimated earnings growth rate of 11.5% for 2025 compared with the S&P 500’s 9.9%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average being 5.1%.
Cencora, carrying a Zacks Rank #2, reported a first-quarter fiscal 2024 adjusted EPS of $3.28, which beat the Zacks Consensus Estimate by 14.7%. Revenues of $72.3 billion outpaced the Zacks Consensus Estimate by 5.1%.
COR has an earnings yield of 5.75% compared with the industry’s 1.85%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average being 6.7%.
Cardinal Health, sporting a Zacks Rank #1, reported second-quarter fiscal 2024 adjusted earnings of $1.82, beating the Zacks Consensus Estimate by 16.7%. Revenues of $57.45 billion improved 11.6% on a year-over-year basis and also topped the Zacks Consensus Estimate by 1.1%.
CAH has a long-term estimated earnings growth rate of 15.3% compared with the industry’s 11.8% growth. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 15.6%.
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CVS Health (CVS) Expands In-Home Diagnostic Care With New Test
CVS Health, Inc. (CVS - Free Report) company — Signify Health — recently launched a new heart arrhythmia test. The addition of new test expands the company’s Diagnostic and Preventive Services offering.
It is worth mentioning that Atrial fibrillation (AFib) is on the rise among seniors in the United States. Early detection in the home can help mitigate symptoms and more severe complications.
The latest launch will bolster CVS Health’s Services segment.
More on the News
People who have undiagnosed heart arrhythmias suffer from symptoms such as chest pain, rapid and irregular heartbeat, and shortness of breath, as well as other high-risk conditions, including stroke and diabetes.
Through the new launch, Signify members who are at risk for an arrhythmia are identified, and then its clinical teams will test for contraindications. Members will be asked to wear a continuous ECG patch, which tracks continuous cardiac activity. After 14 days of wear, the patch is sent to a cardiologist for evaluation to determine whether the member has an arrhythmia.
Screening for heart arrhythmias with the Continuous ECG patch can enhance the member experience and promote better results. According to studies, 94% of people find the patch more pleasant to wear than a traditional monitor and a 14-day ECG is twice as effective.
New Test Launch to Enhance Health Outcome
Early identification of cardiac arrhythmias is essential for facilitating therapy aimed at reducing the risk of complications such as heart failure or stroke. To help promote an early response and lower the risk of another cardiovascular incident, Signify Health created a proactive approach. Traditional methods of arrhythmia testing are expensive, time-consuming, require many doctor visits and are not optimal for members.
With the addition of this test, Signify Health's portfolio of in-home services that promote early identification, diagnosis and treatment of the most common illnesses affecting people's health is now more comprehensive. Signify Health hopes to improve health outcomes by connecting health plan members to high-value healthcare providers with this new product, which will hopefully increase access to care.
Industry Prospects
Per a report by Polaris Market Research, the global arrhythmia market was valued at $6.39 billion in 2021 and is expected to witness a CAGR of 6.8% by 2030. The expansion of the industry is being driven by factors such as the increasing number of cases of lifestyle choices like smoking, excessive alcohol consumption and obesity (which renders a person more prone to cardiac arrhythmias) and increasing patient awareness levels.
Progress Within Healthcare Offering
Signify Health continues to demonstrate the value of its in-home capabilities for all multi-payer Medicare Advantage partners. Signify completed 649,000 in-home evaluations in the reported quarter, up 20% year over year. Signify generated revenue growth of 39% year over year in the quarter. Among its Aetna customers, CVS Health is broadening its addressable market by utilizing Signify’s strong capabilities in other products, including individual exchange and Medicaid.
The company has been removing barriers to digital adoption and making it easier for customers to access the services they seek, such as pharmacy refills and advanced scheduling for immunizations online. In the fourth-quarter update, management noted that it has more than 55 million CVS Health customers engaged in its digital offerings. The company sees tremendous opportunities to expand engagement with customers across CVS Health through its multi-payer capabilities and vast consumer reach.
Price Performance
In the past six months, CVS has gained 14.8% compared with the industry’s rise of 10.2%.
Zacks Rank and Key Picks
CVS Health currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space are Stryker Corporation (SYK - Free Report) , Cencora, Inc. (COR - Free Report) and Cardinal Health (CAH - Free Report) .
Stryker, carrying a Zacks Rank #2, reported a fourth-quarter 2023 adjusted EPS of $3.46, beating the Zacks Consensus Estimate by 5.8%. Revenues of $5.8 billion outpaced the consensus estimate by 3.8%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stryker has an estimated earnings growth rate of 11.5% for 2025 compared with the S&P 500’s 9.9%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average being 5.1%.
Cencora, carrying a Zacks Rank #2, reported a first-quarter fiscal 2024 adjusted EPS of $3.28, which beat the Zacks Consensus Estimate by 14.7%. Revenues of $72.3 billion outpaced the Zacks Consensus Estimate by 5.1%.
COR has an earnings yield of 5.75% compared with the industry’s 1.85%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average being 6.7%.
Cardinal Health, sporting a Zacks Rank #1, reported second-quarter fiscal 2024 adjusted earnings of $1.82, beating the Zacks Consensus Estimate by 16.7%. Revenues of $57.45 billion improved 11.6% on a year-over-year basis and also topped the Zacks Consensus Estimate by 1.1%.
CAH has a long-term estimated earnings growth rate of 15.3% compared with the industry’s 11.8% growth. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 15.6%.