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CVS Health (CVS) Stock Sinks As Market Gains: What You Should Know
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CVS Health (CVS - Free Report) closed at $100.85 in the latest trading session, marking a -0.57% move from the prior day. This move lagged the S&P 500's daily gain of 0.21%. Meanwhile, the Dow gained 0.19%, and the Nasdaq, a tech-heavy index, added 0.01%.
Coming into today, shares of the drugstore chain and pharmacy benefits manager had lost 3.1% in the past month. In that same time, the Retail-Wholesale sector lost 8.18%, while the S&P 500 lost 8.08%.
Investors will be hoping for strength from CVS Health as it approaches its next earnings release, which is expected to be May 4, 2022. On that day, CVS Health is projected to report earnings of $2.14 per share, which would represent year-over-year growth of 4.9%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $75.54 billion, up 9.32% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $8.23 per share and revenue of $307.26 billion, which would represent changes of -2.02% and +5.19%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for CVS Health. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.37% lower. CVS Health is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, CVS Health currently has a Forward P/E ratio of 12.32. This valuation marks a premium compared to its industry's average Forward P/E of 8.88.
Investors should also note that CVS has a PEG ratio of 1.62 right now. 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. Retail - Pharmacies and Drug Stores stocks are, on average, holding a PEG ratio of 2.04 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 229, which puts it in the bottom 10% 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) Stock Sinks As Market Gains: What You Should Know
CVS Health (CVS - Free Report) closed at $100.85 in the latest trading session, marking a -0.57% move from the prior day. This move lagged the S&P 500's daily gain of 0.21%. Meanwhile, the Dow gained 0.19%, and the Nasdaq, a tech-heavy index, added 0.01%.
Coming into today, shares of the drugstore chain and pharmacy benefits manager had lost 3.1% in the past month. In that same time, the Retail-Wholesale sector lost 8.18%, while the S&P 500 lost 8.08%.
Investors will be hoping for strength from CVS Health as it approaches its next earnings release, which is expected to be May 4, 2022. On that day, CVS Health is projected to report earnings of $2.14 per share, which would represent year-over-year growth of 4.9%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $75.54 billion, up 9.32% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $8.23 per share and revenue of $307.26 billion, which would represent changes of -2.02% and +5.19%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for CVS Health. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.37% lower. CVS Health is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, CVS Health currently has a Forward P/E ratio of 12.32. This valuation marks a premium compared to its industry's average Forward P/E of 8.88.
Investors should also note that CVS has a PEG ratio of 1.62 right now. 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. Retail - Pharmacies and Drug Stores stocks are, on average, holding a PEG ratio of 2.04 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 229, which puts it in the bottom 10% 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.