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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 the most recent trading day at $72.84, moving +0.61% from the previous trading session. This change lagged the S&P 500's 1.09% gain on the day. Elsewhere, the Dow gained 0.97%, while the tech-heavy Nasdaq added 2.01%.
Prior to today's trading, shares of the drugstore chain and pharmacy benefits manager had lost 8.64% over the past month. This has was narrower than the Retail-Wholesale sector's loss of 13.73% and lagged the S&P 500's loss of 7.81% in that time.
Investors will be hoping for strength from CVS as it approaches its next earnings release, which is expected to be November 6, 2018. In that report, analysts expect CVS to post earnings of $1.71 per share. This would mark year-over-year growth of 14%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $47.19 billion, up 2.18% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.01 per share and revenue of $188.88 billion, which would represent changes of +18.81% and +2.23%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for CVS. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.02% higher. CVS currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that CVS has a Forward P/E ratio of 10.32 right now. For comparison, its industry has an average Forward P/E of 12.06, which means CVS is trading at a discount to the group.
It is also worth noting that CVS currently has a PEG ratio of 0.97. 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 1.12 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 24, putting it in the top 9% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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) Gains But Lags Market: What You Should Know
CVS Health (CVS - Free Report) closed the most recent trading day at $72.84, moving +0.61% from the previous trading session. This change lagged the S&P 500's 1.09% gain on the day. Elsewhere, the Dow gained 0.97%, while the tech-heavy Nasdaq added 2.01%.
Prior to today's trading, shares of the drugstore chain and pharmacy benefits manager had lost 8.64% over the past month. This has was narrower than the Retail-Wholesale sector's loss of 13.73% and lagged the S&P 500's loss of 7.81% in that time.
Investors will be hoping for strength from CVS as it approaches its next earnings release, which is expected to be November 6, 2018. In that report, analysts expect CVS to post earnings of $1.71 per share. This would mark year-over-year growth of 14%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $47.19 billion, up 2.18% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.01 per share and revenue of $188.88 billion, which would represent changes of +18.81% and +2.23%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for CVS. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.02% higher. CVS currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that CVS has a Forward P/E ratio of 10.32 right now. For comparison, its industry has an average Forward P/E of 12.06, which means CVS is trading at a discount to the group.
It is also worth noting that CVS currently has a PEG ratio of 0.97. 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 1.12 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 24, putting it in the top 9% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.