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Why the Market Dipped But CVS Health (CVS) Gained Today
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CVS Health (CVS - Free Report) closed the most recent trading day at $67.20, moving +1.08% from the previous trading session. This move outpaced the S&P 500's daily loss of 1.12%. Meanwhile, the Dow lost 0.31%, and the Nasdaq, a tech-heavy index, lost 2.04%.
Coming into today, shares of the drugstore chain and pharmacy benefits manager had gained 4.43% in the past month. In that same time, the Medical sector lost 2.99%, while the S&P 500 lost 2.91%.
Market participants will be closely following the financial results of CVS Health in its upcoming release. The company's upcoming EPS is projected at $1.62, signifying a 23.66% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $92.82 billion, indicating a 4.95% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $5.89 per share and a revenue of $387.86 billion, representing changes of +8.67% and +4.04%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for CVS Health. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been a 0.12% fall in the Zacks Consensus EPS estimate. As of now, CVS Health holds a Zacks Rank of #3 (Hold).
In terms of valuation, CVS Health is currently trading at a Forward P/E ratio of 11.3. This indicates a discount in contrast to its industry's Forward P/E of 15.91.
Investors should also note that CVS has a PEG ratio of 1.01 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Medical Services industry was having an average PEG ratio of 1.44.
The Medical Services industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 78, positioning it in the top 32% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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Why the Market Dipped But CVS Health (CVS) Gained Today
CVS Health (CVS - Free Report) closed the most recent trading day at $67.20, moving +1.08% from the previous trading session. This move outpaced the S&P 500's daily loss of 1.12%. Meanwhile, the Dow lost 0.31%, and the Nasdaq, a tech-heavy index, lost 2.04%.
Coming into today, shares of the drugstore chain and pharmacy benefits manager had gained 4.43% in the past month. In that same time, the Medical sector lost 2.99%, while the S&P 500 lost 2.91%.
Market participants will be closely following the financial results of CVS Health in its upcoming release. The company's upcoming EPS is projected at $1.62, signifying a 23.66% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $92.82 billion, indicating a 4.95% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $5.89 per share and a revenue of $387.86 billion, representing changes of +8.67% and +4.04%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for CVS Health. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been a 0.12% fall in the Zacks Consensus EPS estimate. As of now, CVS Health holds a Zacks Rank of #3 (Hold).
In terms of valuation, CVS Health is currently trading at a Forward P/E ratio of 11.3. This indicates a discount in contrast to its industry's Forward P/E of 15.91.
Investors should also note that CVS has a PEG ratio of 1.01 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Medical Services industry was having an average PEG ratio of 1.44.
The Medical Services industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 78, positioning it in the top 32% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.