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CVS Health (CVS) Gains But Lags Market: What You Should Know
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CVS Health (CVS - Free Report) closed at $70.67 in the latest trading session, marking a +1.23% move from the prior day. The stock lagged the S&P 500's daily gain of 1.86%. At the same time, the Dow added 1.63%, and the tech-heavy Nasdaq gained 2.95%.
Prior to today's trading, shares of the drugstore chain and pharmacy benefits manager had lost 10.99% over the past month. This has was narrower than the Retail-Wholesale sector's loss of 11.88% and lagged the S&P 500's loss of 8.85% in that time.
CVS will be looking to display strength as it nears its next earnings release, which is expected to be November 6, 2018. On that day, CVS is projected to report earnings of $1.71 per share, which would represent year-over-year growth of 14%. Meanwhile, our latest consensus estimate is calling for revenue of $47.18 billion, up 2.17% from the prior-year quarter.
CVS's full-year Zacks Consensus Estimates are calling for earnings of $7.01 per share and revenue of $188.88 billion. These results would represent year-over-year changes of +18.81% and +2.23%, respectively.
Any recent changes to analyst estimates for CVS should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate has moved 0.02% higher within the past month. CVS is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that CVS has a Forward P/E ratio of 9.96 right now. Its industry sports an average Forward P/E of 11.37, so we one might conclude that CVS is trading at a discount comparatively.
Investors should also note that CVS has a PEG ratio of 0.93 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. CVS's industry had an average PEG ratio of 1.1 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 38, which puts it in the top 15% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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CVS Health (CVS) Gains But Lags Market: What You Should Know
CVS Health (CVS - Free Report) closed at $70.67 in the latest trading session, marking a +1.23% move from the prior day. The stock lagged the S&P 500's daily gain of 1.86%. At the same time, the Dow added 1.63%, and the tech-heavy Nasdaq gained 2.95%.
Prior to today's trading, shares of the drugstore chain and pharmacy benefits manager had lost 10.99% over the past month. This has was narrower than the Retail-Wholesale sector's loss of 11.88% and lagged the S&P 500's loss of 8.85% in that time.
CVS will be looking to display strength as it nears its next earnings release, which is expected to be November 6, 2018. On that day, CVS is projected to report earnings of $1.71 per share, which would represent year-over-year growth of 14%. Meanwhile, our latest consensus estimate is calling for revenue of $47.18 billion, up 2.17% from the prior-year quarter.
CVS's full-year Zacks Consensus Estimates are calling for earnings of $7.01 per share and revenue of $188.88 billion. These results would represent year-over-year changes of +18.81% and +2.23%, respectively.
Any recent changes to analyst estimates for CVS should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate has moved 0.02% higher within the past month. CVS is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that CVS has a Forward P/E ratio of 9.96 right now. Its industry sports an average Forward P/E of 11.37, so we one might conclude that CVS is trading at a discount comparatively.
Investors should also note that CVS has a PEG ratio of 0.93 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. CVS's industry had an average PEG ratio of 1.1 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 38, which puts it in the top 15% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.