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CVS Health (CVS) Gains But Lags Market: What You Should Know
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In the latest trading session, CVS Health (CVS - Free Report) closed at $81.34, marking a +0.2% move from the previous day. This move lagged the S&P 500's daily gain of 0.34%.
Heading into today, shares of the drugstore chain and pharmacy benefits manager had lost 5.4% over the past month, lagging the Retail-Wholesale sector's gain of 3.27% and the S&P 500's gain of 2.71% in that time.
Wall Street will be looking for positivity from CVS as it approaches its next earnings report date. In that report, analysts expect CVS to post earnings of $2.06 per share. This would mark a year-over-year decline of 21.97%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $70.08 billion, up 7.25% from the year-ago period.
CVS's full-year Zacks Consensus Estimates are calling for earnings of $7.65 per share and revenue of $281.08 billion. These results would represent year-over-year changes of +2% and +4.6%, respectively.
It is also important to note the recent changes to analyst estimates for CVS. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.12% higher. CVS is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that CVS has a Forward P/E ratio of 10.61 right now. Its industry sports an average Forward P/E of 10.61, so we one might conclude that CVS is trading at a no noticeable deviation comparatively.
We can also see that CVS currently has a PEG ratio of 1.58. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Retail - Pharmacies and Drug Stores industry currently had an average PEG ratio of 1.53 as of yesterday's close.
The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 221, putting it in the bottom 13% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow CVS in the coming trading sessions, be sure to utilize Zacks.com.
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CVS Health (CVS) Gains But Lags Market: What You Should Know
In the latest trading session, CVS Health (CVS - Free Report) closed at $81.34, marking a +0.2% move from the previous day. This move lagged the S&P 500's daily gain of 0.34%.
Heading into today, shares of the drugstore chain and pharmacy benefits manager had lost 5.4% over the past month, lagging the Retail-Wholesale sector's gain of 3.27% and the S&P 500's gain of 2.71% in that time.
Wall Street will be looking for positivity from CVS as it approaches its next earnings report date. In that report, analysts expect CVS to post earnings of $2.06 per share. This would mark a year-over-year decline of 21.97%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $70.08 billion, up 7.25% from the year-ago period.
CVS's full-year Zacks Consensus Estimates are calling for earnings of $7.65 per share and revenue of $281.08 billion. These results would represent year-over-year changes of +2% and +4.6%, respectively.
It is also important to note the recent changes to analyst estimates for CVS. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.12% higher. CVS is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that CVS has a Forward P/E ratio of 10.61 right now. Its industry sports an average Forward P/E of 10.61, so we one might conclude that CVS is trading at a no noticeable deviation comparatively.
We can also see that CVS currently has a PEG ratio of 1.58. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Retail - Pharmacies and Drug Stores industry currently had an average PEG ratio of 1.53 as of yesterday's close.
The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 221, putting it in the bottom 13% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow CVS in the coming trading sessions, be sure to utilize Zacks.com.