We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
CVS Health (CVS) Gains As Market Dips: What You Should Know
Read MoreHide Full Article
CVS Health (CVS - Free Report) closed the most recent trading day at $80.34, moving +0.64% from the previous trading session. The stock outpaced the S&P 500's daily loss of 1.97%. Meanwhile, the Dow lost 2.32%, and the Nasdaq, a tech-heavy index, lost 2.78%.
Heading into today, shares of the drugstore chain and pharmacy benefits manager had gained 9.07% over the past month, outpacing the Retail-Wholesale sector's loss of 1.88% and the S&P 500's loss of 3.33% in that time.
Investors will be hoping for strength from CVS as it approaches its next earnings release, which is expected to be February 14, 2019. The company is expected to report EPS of $2.15, up 11.98% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $49.42 billion, up 2.14% from the prior-year quarter.
CVS's full-year Zacks Consensus Estimates are calling for earnings of $7.04 per share and revenue of $189.04 billion. These results would represent year-over-year changes of +19.32% and +2.31%, 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.05% lower. CVS currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, CVS is holding a Forward P/E ratio of 11.34. This represents a discount compared to its industry's average Forward P/E of 12.59.
It is also worth noting that CVS currently has a PEG ratio of 1.06. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Retail - Pharmacies and Drug Stores industry currently 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 group has a Zacks Industry Rank of 9, putting it in the top 4% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
CVS Health (CVS) Gains As Market Dips: What You Should Know
CVS Health (CVS - Free Report) closed the most recent trading day at $80.34, moving +0.64% from the previous trading session. The stock outpaced the S&P 500's daily loss of 1.97%. Meanwhile, the Dow lost 2.32%, and the Nasdaq, a tech-heavy index, lost 2.78%.
Heading into today, shares of the drugstore chain and pharmacy benefits manager had gained 9.07% over the past month, outpacing the Retail-Wholesale sector's loss of 1.88% and the S&P 500's loss of 3.33% in that time.
Investors will be hoping for strength from CVS as it approaches its next earnings release, which is expected to be February 14, 2019. The company is expected to report EPS of $2.15, up 11.98% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $49.42 billion, up 2.14% from the prior-year quarter.
CVS's full-year Zacks Consensus Estimates are calling for earnings of $7.04 per share and revenue of $189.04 billion. These results would represent year-over-year changes of +19.32% and +2.31%, 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.05% lower. CVS currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, CVS is holding a Forward P/E ratio of 11.34. This represents a discount compared to its industry's average Forward P/E of 12.59.
It is also worth noting that CVS currently has a PEG ratio of 1.06. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Retail - Pharmacies and Drug Stores industry currently 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 group has a Zacks Industry Rank of 9, putting it in the top 4% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.