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Why the Market Dipped But CVS Health (CVS) Gained Today

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The most recent trading session ended with CVS Health (CVS - Free Report) standing at $62.92, reflecting a +1.09% shift from the previouse trading day's closing. The stock's change was more than the S&P 500's daily loss of 0.17%. Elsewhere, the Dow saw a downswing of 0.44%, while the tech-heavy Nasdaq depreciated by 0.04%.

Shares of the drugstore chain and pharmacy benefits manager witnessed a gain of 4.96% over the previous month, trailing the performance of the Retail-Wholesale sector with its gain of 5.43% and outperforming the S&P 500's gain of 1.25%.

The upcoming earnings release of CVS Health will be of great interest to investors. The company is predicted to post an EPS of $1.70, indicating a 23.08% decline compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $92.83 billion, showing a 3.42% escalation compared to the year-ago quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $6.51 per share and revenue of $369.14 billion, indicating changes of -25.51% and +3.18%, respectively, compared to the previous year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for CVS Health. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.05% decrease. CVS Health is currently a Zacks Rank #4 (Sell).

Looking at valuation, CVS Health is presently trading at a Forward P/E ratio of 9.56. This indicates a premium in contrast to its industry's Forward P/E of 5.09.

Investors should also note that CVS has a PEG ratio of 0.87 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. Retail - Pharmacies and Drug Stores stocks are, on average, holding a PEG ratio of 0.87 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 238, which puts it in the bottom 6% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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