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CVS Health (CVS) Gains As Market Dips: What You Should Know
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CVS Health (CVS - Free Report) closed at $104.64 in the latest trading session, marking a +0.18% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.34%. At the same time, the Dow lost 0.26%, and the tech-heavy Nasdaq gained 0.09%.
Heading into today, shares of the drugstore chain and pharmacy benefits manager had lost 0.04% over the past month, lagging the Retail-Wholesale sector's gain of 5.46% and the S&P 500's gain of 5.03% in that time.
CVS Health will be looking to display strength as it nears its next earnings release, which is expected to be May 4, 2022. The company is expected to report EPS of $2.15, up 5.39% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $75.63 billion, up 9.45% from the year-ago period.
CVS's full-year Zacks Consensus Estimates are calling for earnings of $8.24 per share and revenue of $307.22 billion. These results would represent year-over-year changes of -1.9% and +5.17%, respectively.
Investors might also notice recent changes to analyst estimates for CVS Health. These recent revisions tend to reflect the evolving nature of short-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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 0.3% 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 12.68. For comparison, its industry has an average Forward P/E of 8.8, which means CVS Health is trading at a premium to the group.
Investors should also note that CVS has a PEG ratio of 1.56 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Retail - Pharmacies and Drug Stores industry currently had an average PEG ratio of 1.99 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 195, 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 As Market Dips: What You Should Know
CVS Health (CVS - Free Report) closed at $104.64 in the latest trading session, marking a +0.18% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.34%. At the same time, the Dow lost 0.26%, and the tech-heavy Nasdaq gained 0.09%.
Heading into today, shares of the drugstore chain and pharmacy benefits manager had lost 0.04% over the past month, lagging the Retail-Wholesale sector's gain of 5.46% and the S&P 500's gain of 5.03% in that time.
CVS Health will be looking to display strength as it nears its next earnings release, which is expected to be May 4, 2022. The company is expected to report EPS of $2.15, up 5.39% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $75.63 billion, up 9.45% from the year-ago period.
CVS's full-year Zacks Consensus Estimates are calling for earnings of $8.24 per share and revenue of $307.22 billion. These results would represent year-over-year changes of -1.9% and +5.17%, respectively.
Investors might also notice recent changes to analyst estimates for CVS Health. These recent revisions tend to reflect the evolving nature of short-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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 0.3% 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 12.68. For comparison, its industry has an average Forward P/E of 8.8, which means CVS Health is trading at a premium to the group.
Investors should also note that CVS has a PEG ratio of 1.56 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Retail - Pharmacies and Drug Stores industry currently had an average PEG ratio of 1.99 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 195, 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.