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CVS Health (CVS) Outpaces Stock Market Gains: What You Should Know
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In the latest trading session, CVS Health (CVS - Free Report) closed at $88.32, marking a +0.73% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.18%.
Coming into today, shares of the drugstore chain and pharmacy benefits manager had gained 2.26% in the past month. In that same time, the Retail-Wholesale sector gained 1.13%, while the S&P 500 gained 2.96%.
CVS will be looking to display strength as it nears its next earnings release, which is expected to be November 3, 2021. The company is expected to report EPS of $1.79, up 7.83% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $70.23 billion, up 4.74% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.78 per share and revenue of $282.99 billion, which would represent changes of +3.73% and +5.32%, respectively, from the prior year.
Any recent changes to analyst estimates for CVS should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.74% lower. CVS is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, CVS is currently trading at a Forward P/E ratio of 11.27. For comparison, its industry has an average Forward P/E of 10.05, which means CVS is trading at a premium to the group.
Meanwhile, CVS's PEG ratio is currently 1.77. 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 2 as of yesterday's close.
The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 242, which puts it in the bottom 5% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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CVS Health (CVS) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, CVS Health (CVS - Free Report) closed at $88.32, marking a +0.73% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.18%.
Coming into today, shares of the drugstore chain and pharmacy benefits manager had gained 2.26% in the past month. In that same time, the Retail-Wholesale sector gained 1.13%, while the S&P 500 gained 2.96%.
CVS will be looking to display strength as it nears its next earnings release, which is expected to be November 3, 2021. The company is expected to report EPS of $1.79, up 7.83% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $70.23 billion, up 4.74% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.78 per share and revenue of $282.99 billion, which would represent changes of +3.73% and +5.32%, respectively, from the prior year.
Any recent changes to analyst estimates for CVS should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.74% lower. CVS is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, CVS is currently trading at a Forward P/E ratio of 11.27. For comparison, its industry has an average Forward P/E of 10.05, which means CVS is trading at a premium to the group.
Meanwhile, CVS's PEG ratio is currently 1.77. 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 2 as of yesterday's close.
The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 242, which puts it in the bottom 5% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.