CVS Health Corporation (CVS) shares rose about 4% during Tuesday's session after the company presented strategies to accelerate its growth rate.

At its Investor Day event, the pharmacy giant highlighted plans to continue leveraging its retail footprint to deliver managed care services by expanding its HealthHUBS to 1,500 retail locations by the end of 2021. These locations will focus on managing chronic diseases affecting about 60% of the American adult population, as well as optimizing government programs and providing home hemodialysis products.

In addition, the company projected that its integration initiatives could save upwards of $900 million in 2021 and beyond, while its modernization efforts could reduce costs by between $1.5 billion and $2 billion in 2022 and beyond. These cost-cutting efforts could help improve margins and net income for CVS over the coming years.

Management believes that these initiatives and others could lead to revenue of $251.2 billion to $254.4 billion and non-GAAP earnings per share of $6.75 to $6.90 this year. 

Chart showing the share price performance of CVS Health Corporation (CVS)

From a technical standpoint, CVS stock broke out from its 50-day moving average at $53.63 to retest highs from earlier this month. The relative strength index moved toward overbought territory with a reading of 60.77, but the moving average convergence divergence (MACD) experienced a bullish crossover. These indicators suggest that the stock could have a bit more room to run before experiencing some consolidation.

Traders should watch for a move to retest prior reaction highs of around $58.00 over the coming sessions. If the stock breaks out from those levels, traders could see an intermediate-term move toward the 200-day moving average at $65.28. If the stock moves lower, traders should look for support at the 50-day moving average at $53.63 or long-term support near $52.00.

The author holds no position in the stock(s) mentioned except through passively managed index funds.