CVS Climbs on Strong Earnings While Norwegian Falls on Lowered Guidance
Last week, the Opportunity Equity Strategy’s representative account gained 0.75%, underperforming the S&P 500’s 2.36% rise. (Exhibit 1). The strategy ended the week up 7.08% YTD, -144 basis points behind the S&P 500.Exhibit 1: Performance of Opportunity Equity Representative Account Net of Fees, Versus S&P 500, Through 05/08/261
| Time Period | Opportunity Equity Representative Account | S&P 500 |
| Last Week (05/01-05/08) | 0.75% | 2.36% |
| MTD | 0.84% | 2.66% |
| QTD | 13.84% | 13.43% |
| YTD | 7.08% | 8.52% |
| 1 Year | 49.63% | 32.27% |
| 3 Year | 30.63% | 23.06% |
| 5 Year | 4.98% | 13.45% |
| 10 Year | 14.36% | 15.60% |
| Inception (annualized since 6/26/00) | 8.64% | 8.48% |
Source: Bloomberg, Patient Capital Management.
Nvidia Corp (NVDA) completed an AI infrastructure deal with IREN, under which Nvidia will provide hardware in exchange for the option to purchase 30 million IREN shares over the next five years at a $70 strike price, along with a five-year cloud services contract worth $3.4 billion.CVS Health Corp (CVS) hit a new 52-week high after reporting a beat-and-raise quarter. The company posted revenue of $100.4B vs. $94.8B expected and EPS of $2.30 vs. $1.87 expected. CVS also raised FY26 revenue guidance from above $400B to above $405B and increased FY26 EPS guidance by $0.30 at the midpoint. RBC increased its price target from $93 to $107 (30% upside).
Alphabet Inc. (GOOGL) continued its post-earnings climb to a new all-time high. Citizens maintained its $515 price target (34% upside), arguing the market still underappreciates the company's potential to monetize TPU sales, a dynamic that could meaningfully accelerate cloud revenue beyond current estimates.
United Airlines Holdings, Inc. (UAL) reclaimed its 50-day moving average, rising in sympathy with peers following the official shutdown of Spirit Airlines.
UnitedHealth Group (UNH) rose in sympathy with CVS on improving medicare advantage trends.
Exhibit 2: Significant2 Contributors to Opportunity Equity Representative Account Performance, 05/01/2026 - 05/08/2026
| Name | Type | Net Return |
| Nvidia Corp | Equity | 8.4% |
| CVS Health Corp | Equity | 10.3% |
| Alphabet Inc. | Equity | 3.9% |
| United Airlines Holdings, Inc. | Equity | 7.6% |
| UnitedHealth Group | Equity | 3.0% |
Source: Patient Capital Management. See below for additional information.
Chime Financial Inc (CHYM) fell through its 50-day moving average despite topping revenue estimates, delivering a profitability surprise, and raising guidance on its 1Q26 earnings call. The company generated revenue of $647M (+25% y/y) vs. $638M expected and EPS of $0.13, well ahead of the $0.04 expected. Chime increased FY26 revenue guidance by $20M at the midpoint and FY26 EBITDA by ~$34M at the midpoint. Evercore maintained its $35 price target (57% upside), highlighting higher average revenue per active member (ARPAM) and improving operating leverage.
Norwegian Cruise Line Holdings Ltd. (NCLH) found a new 52-week low after reporting mixed earnings and lowering FY26 guidance. The company printed revenue of $2,331M vs. $2,353M expected and adjusted EPS of $0.23 vs. $0.15 expected. Norwegian lowered FY26 EBITDA guidance from $2,950M to $2,570M at the midpoint and adjusted EPS guidance from $2.38 to a range of $1.45–$1.79, citing pressure on European sailings and softness in Alaska. Mizuho lowered its price target from $27 to $24 (28% upside) and maintained its outperform rating.
Citi lowered its price target on QXO, Inc. (QXO) from $31 to $30 (60% upside).
Fiserv, Inc. (FISV) broke below its 50-day and 100-day moving averages after announcing mixed earnings and reiterating its FY26 guide. Fiserv delivered revenue of $4,675M vs. $4,729M expected and adjusted EPS of $1.79 vs. $1.57 expected. Additionally, the company maintained its FY26 adjusted EPS guidance of $8.00 - $8.30. RBC lowered its price target from $85 to $75 (21% upside) and maintained its buy rating.
Expedia Group, Inc. (EXPE) fell through its 50-day and 200-day moving averages despite announcing strong earnings and reaffirming its FY26 guidance. The company reported revenue of $3,426M vs. $3,353M expected, adjusted EPS of $1.96 vs. $1.46 expected, and reiterated FY26 revenue guidance of $15.8B at the midpoint. Expedia also retired an additional 3.3M shares during the quarter (~3% of shares outstanding), bringing total buybacks to 49M shares since 2022. Bank of America increased its price target from $306 to $310 (23% upside), noting the fastest B2C bookings growth since 2018 (ex-COVID) and FY26 guidance maintenance despite recent macro headwinds, suggesting the FY26 guide could be conservative.
Exhibit 3: Significant2 Detractors from Opportunity Equity Representative Account Performance, 05/01/2026 - 05/08/2026
| Name | Type | Net Return |
| Chime Financial Inc | Equity | -16.3% |
| Norwegian Cruise Line Holdings Ltd. | Equity | -9.2% |
| QXO, Inc. | Equity | -5.3% |
| Fiserv, Inc. | Equity | -10.7% |
| Expedia Group, Inc. | Equity | -8.7% |
Source: Patient Capital Management. See below for additional information.
1The performance figures for the representative Opportunity Equity account reflect the deduction of investment management fees and certain other expenses. For additional information about Opportunity Equity Strategy performance, please click on the Opportunity Equity Strategy Composite Performance.
Past performance is no guarantee of future results.
2Significant Contributors and Detractors are based on holdings that had the greatest effect on representative account performance for the week. Holdings that have been in the portfolio since the end of the most recent calendar quarter are identified by name. The net return shown above for each individual security represents the change in market price of the security during the week, according to a third-party pricing service, or for the partial period held in the portfolio during the week. Net returns also include any purchases or sales that were made during the week. For information on how Contributor/Detractor data were calculated and a list showing the contribution to the Strategy’s weekly performance of each investment held at such quarter end, contact us.
*Entered into position intra quarter. Security holding not yet publicly disclosed.
Any views expressed are subject to change at any time, and Patient Capital Management disclaims any responsibility to update such views. There is no guarantee that market trends discussed herein will continue. The information presented should not be considered a recommendation to purchase or sell any security and should not be relied upon as investment advice. It should not be assumed that any purchase or sale decisions will be profitable or will equal the performance of any security mentioned. Past performance is no guarantee of future results, and there is no guarantee dividends will be paid or continued. References to specific securities are for illustrative purposes only. Portfolio composition is shown as of a point in time and is subject to change without notice. Content may not be reprinted, republished or used in any manner without written consent from Patient Capital Management.
©2026 Patient Capital Management, LLC
Share