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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 $102.31 in the latest trading session, marking a +1.25% move from the prior day. The stock outpaced the S&P 500's daily loss of 1.13%. Meanwhile, the Dow lost 0.56%, and the Nasdaq, a tech-heavy index, added 0.03%.
Heading into today, shares of the drugstore chain and pharmacy benefits manager had lost 3.69% over the past month, outpacing the Retail-Wholesale sector's loss of 6.28% and the S&P 500's loss of 7.59% in that time.
Wall Street will be looking for positivity from CVS Health as it approaches its next earnings report date. The company is expected to report EPS of $1.99, up 1.02% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $76.53 billion, up 3.7% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.54 per share and revenue of $311.69 billion. These totals would mark changes of +1.67% and +6.7%, respectively, from last year.
Investors should also note any 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.
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 0.03% 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 11.84. For comparison, its industry has an average Forward P/E of 7.51, which means CVS Health is trading at a premium to the group.
Meanwhile, CVS's PEG ratio is currently 1.54. 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. Retail - Pharmacies and Drug Stores stocks are, on average, holding a PEG ratio of 1.52 based on yesterday's closing prices.
The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 99, putting it in the top 40% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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CVS Health (CVS) Gains As Market Dips: What You Should Know
CVS Health (CVS - Free Report) closed at $102.31 in the latest trading session, marking a +1.25% move from the prior day. The stock outpaced the S&P 500's daily loss of 1.13%. Meanwhile, the Dow lost 0.56%, and the Nasdaq, a tech-heavy index, added 0.03%.
Heading into today, shares of the drugstore chain and pharmacy benefits manager had lost 3.69% over the past month, outpacing the Retail-Wholesale sector's loss of 6.28% and the S&P 500's loss of 7.59% in that time.
Wall Street will be looking for positivity from CVS Health as it approaches its next earnings report date. The company is expected to report EPS of $1.99, up 1.02% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $76.53 billion, up 3.7% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.54 per share and revenue of $311.69 billion. These totals would mark changes of +1.67% and +6.7%, respectively, from last year.
Investors should also note any 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.
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 0.03% 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 11.84. For comparison, its industry has an average Forward P/E of 7.51, which means CVS Health is trading at a premium to the group.
Meanwhile, CVS's PEG ratio is currently 1.54. 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. Retail - Pharmacies and Drug Stores stocks are, on average, holding a PEG ratio of 1.52 based on yesterday's closing prices.
The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 99, putting it in the top 40% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.