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CVS Health (CVS) Stock Sinks As Market Gains: What You Should Know
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In the latest trading session, CVS Health (CVS - Free Report) closed at $107.23, marking a -0.15% move from the previous day. This change lagged the S&P 500's daily gain of 1.13%. At the same time, the Dow added 0.74%, and the tech-heavy Nasdaq gained 0.87%.
Heading into today, shares of the drugstore chain and pharmacy benefits manager had gained 5.15% over the past month, outpacing the Retail-Wholesale sector's gain of 0.3% and the S&P 500's gain of 2.65% in that time.
Wall Street will be looking for positivity from CVS Health as it approaches its next earnings report date. 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.
CVS's full-year Zacks Consensus Estimates are calling for earnings of $8.26 per share and revenue of $307.17 billion. These results would represent year-over-year changes of -1.67% and +5.16%, respectively.
Investors should also note any recent changes to analyst estimates for CVS Health. 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.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. CVS Health is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that CVS Health has a Forward P/E ratio of 12.99 right now. For comparison, its industry has an average Forward P/E of 11.21, which means CVS Health is trading at a premium to the group.
Meanwhile, CVS's PEG ratio is currently 1.6. 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 1.91 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.
To follow CVS in the coming trading sessions, be sure to utilize Zacks.com.
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CVS Health (CVS) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, CVS Health (CVS - Free Report) closed at $107.23, marking a -0.15% move from the previous day. This change lagged the S&P 500's daily gain of 1.13%. At the same time, the Dow added 0.74%, and the tech-heavy Nasdaq gained 0.87%.
Heading into today, shares of the drugstore chain and pharmacy benefits manager had gained 5.15% over the past month, outpacing the Retail-Wholesale sector's gain of 0.3% and the S&P 500's gain of 2.65% in that time.
Wall Street will be looking for positivity from CVS Health as it approaches its next earnings report date. 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.
CVS's full-year Zacks Consensus Estimates are calling for earnings of $8.26 per share and revenue of $307.17 billion. These results would represent year-over-year changes of -1.67% and +5.16%, respectively.
Investors should also note any recent changes to analyst estimates for CVS Health. 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.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. CVS Health is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that CVS Health has a Forward P/E ratio of 12.99 right now. For comparison, its industry has an average Forward P/E of 11.21, which means CVS Health is trading at a premium to the group.
Meanwhile, CVS's PEG ratio is currently 1.6. 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 1.91 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.
To follow CVS in the coming trading sessions, be sure to utilize Zacks.com.