We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
CVS Health (CVS) Gains As Market Dips: What You Should Know
Read MoreHide Full Article
CVS Health (CVS - Free Report) closed at $85.74 in the latest trading session, marking a +1.22% move from the prior day. This move outpaced the S&P 500's daily loss of 0.28%.
Heading into today, shares of the drugstore chain and pharmacy benefits manager had gained 1.19% over the past month, outpacing the Retail-Wholesale sector's loss of 0.55% and the S&P 500's loss of 0.56% in that time.
Investors will be hoping for strength from CVS as it approaches its next earnings release. The company is expected to report EPS of $1.80, up 8.43% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $70.23 billion, up 4.74% from the year-ago period.
CVS's full-year Zacks Consensus Estimates are calling for earnings of $7.84 per share and revenue of $283.06 billion. These results would represent year-over-year changes of +4.53% and +5.34%, respectively.
Investors might also notice recent changes to analyst estimates for CVS. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.86% higher. CVS currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that CVS has a Forward P/E ratio of 10.81 right now. Its industry sports an average Forward P/E of 9.5, so we one might conclude that CVS is trading at a premium comparatively.
We can also see that CVS currently has a PEG ratio of 1.7. 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. Retail - Pharmacies and Drug Stores stocks are, on average, holding a PEG ratio of 1.54 based on yesterday's closing prices.
The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 126, which puts it in the top 50% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
CVS Health (CVS) Gains As Market Dips: What You Should Know
CVS Health (CVS - Free Report) closed at $85.74 in the latest trading session, marking a +1.22% move from the prior day. This move outpaced the S&P 500's daily loss of 0.28%.
Heading into today, shares of the drugstore chain and pharmacy benefits manager had gained 1.19% over the past month, outpacing the Retail-Wholesale sector's loss of 0.55% and the S&P 500's loss of 0.56% in that time.
Investors will be hoping for strength from CVS as it approaches its next earnings release. The company is expected to report EPS of $1.80, up 8.43% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $70.23 billion, up 4.74% from the year-ago period.
CVS's full-year Zacks Consensus Estimates are calling for earnings of $7.84 per share and revenue of $283.06 billion. These results would represent year-over-year changes of +4.53% and +5.34%, respectively.
Investors might also notice recent changes to analyst estimates for CVS. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.86% higher. CVS currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that CVS has a Forward P/E ratio of 10.81 right now. Its industry sports an average Forward P/E of 9.5, so we one might conclude that CVS is trading at a premium comparatively.
We can also see that CVS currently has a PEG ratio of 1.7. 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. Retail - Pharmacies and Drug Stores stocks are, on average, holding a PEG ratio of 1.54 based on yesterday's closing prices.
The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 126, which puts it in the top 50% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.