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CVS Health (CVS) Gains But Lags Market: What You Should Know
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CVS Health (CVS - Free Report) closed at $107.11 in the latest trading session, marking a +0.12% move from the prior day. This move lagged the S&P 500's daily gain of 2.24%. Elsewhere, the Dow gained 1.55%, while the tech-heavy Nasdaq added 0.5%.
Heading into today, shares of the drugstore chain and pharmacy benefits manager had gained 3.89% over the past month, outpacing the Retail-Wholesale sector's loss of 6.16% and the S&P 500's loss of 4.46% in that time.
CVS Health will be looking to display strength as it nears its next earnings release. On that day, CVS Health is projected to report earnings of $2.16 per share, which would represent year-over-year growth of 5.88%. Our most recent consensus estimate is calling for quarterly revenue of $75.17 billion, up 8.79% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.26 per share and revenue of $307.17 billion. These totals would mark changes of -1.67% and +5.16%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for CVS Health. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
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. Within the past 30 days, our consensus EPS projection has moved 0.05% lower. CVS Health is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, CVS Health is currently trading at a Forward P/E ratio of 12.94. This represents a premium compared to its industry's average Forward P/E of 11.25.
Meanwhile, CVS's PEG ratio is currently 1.6. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Retail - Pharmacies and Drug Stores industry currently had an average PEG ratio of 1.87 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 196, which puts it in the bottom 23% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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CVS Health (CVS) Gains But Lags Market: What You Should Know
CVS Health (CVS - Free Report) closed at $107.11 in the latest trading session, marking a +0.12% move from the prior day. This move lagged the S&P 500's daily gain of 2.24%. Elsewhere, the Dow gained 1.55%, while the tech-heavy Nasdaq added 0.5%.
Heading into today, shares of the drugstore chain and pharmacy benefits manager had gained 3.89% over the past month, outpacing the Retail-Wholesale sector's loss of 6.16% and the S&P 500's loss of 4.46% in that time.
CVS Health will be looking to display strength as it nears its next earnings release. On that day, CVS Health is projected to report earnings of $2.16 per share, which would represent year-over-year growth of 5.88%. Our most recent consensus estimate is calling for quarterly revenue of $75.17 billion, up 8.79% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.26 per share and revenue of $307.17 billion. These totals would mark changes of -1.67% and +5.16%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for CVS Health. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
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. Within the past 30 days, our consensus EPS projection has moved 0.05% lower. CVS Health is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, CVS Health is currently trading at a Forward P/E ratio of 12.94. This represents a premium compared to its industry's average Forward P/E of 11.25.
Meanwhile, CVS's PEG ratio is currently 1.6. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Retail - Pharmacies and Drug Stores industry currently had an average PEG ratio of 1.87 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 196, which puts it in the bottom 23% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.