CVS Health (CVS) reported mixed second-quarter earnings results, with weakness in its insurance business dragging the company's stock in Wednesday's trading session. Jefferies Healthcare Services equity research analyst Brian Tanquilut joins Catalysts to discuss his outlook on the retail pharmacy chain moving forward.

Tanquilut notes that the company is experiencing "higher than expected utilization trends across healthcare," which is evident in CVS's earnings because the "challenge is very isolated in their Aetna insurance business." He suggests that for the stock price to rise, investors need to see "improvement and better visibility in that insurance business," which would also lead to earnings growth.

Addressing CVS's decision to change leadership in its Aetna business by replacing president Brian Kane, Tanquilut observes, "It looks like they have a plan, they have a strategy in place on how to turn the business around in 2025," alongside a $2 billion cost-cutting initiative.

"The plan is in place, it's a matter of execution," Tanquilut tells Yahoo Finance.

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This post was written by Angel Smith