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CVS Health (CVS) Outpaces Stock Market Gains: What You Should Know
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CVS Health (CVS - Free Report) closed at $55.50 in the latest trading session, marking a +1% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.72%. Meanwhile, the Dow gained 0.55%, and the Nasdaq, a tech-heavy index, added 0.71%.
Coming into today, shares of the drugstore chain and pharmacy benefits manager had lost 10.26% in the past month. In that same time, the Retail-Wholesale sector gained 1.76%, while the S&P 500 gained 0.28%.
CVS will be looking to display strength as it nears its next earnings release. On that day, CVS is projected to report earnings of $1.52 per share, which would represent year-over-year growth of 2.7%. Meanwhile, our latest consensus estimate is calling for revenue of $60.49 billion, up 32.39% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.83 per share and revenue of $251.64 billion, which would represent changes of -3.53% and +29.65%, respectively, from the prior year.
Any recent changes to analyst estimates for CVS should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-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 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. The Zacks Consensus EPS estimate has moved 0.02% higher within the past month. CVS currently has a Zacks Rank of #4 (Sell).
In terms of valuation, CVS is currently trading at a Forward P/E ratio of 8.05. This valuation marks a discount compared to its industry's average Forward P/E of 12.87.
Also, we should mention that CVS 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 1.06 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 234, which puts it in the bottom 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.
To follow CVS in the coming trading sessions, be sure to utilize Zacks.com.
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CVS Health (CVS) Outpaces Stock Market Gains: What You Should Know
CVS Health (CVS - Free Report) closed at $55.50 in the latest trading session, marking a +1% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.72%. Meanwhile, the Dow gained 0.55%, and the Nasdaq, a tech-heavy index, added 0.71%.
Coming into today, shares of the drugstore chain and pharmacy benefits manager had lost 10.26% in the past month. In that same time, the Retail-Wholesale sector gained 1.76%, while the S&P 500 gained 0.28%.
CVS will be looking to display strength as it nears its next earnings release. On that day, CVS is projected to report earnings of $1.52 per share, which would represent year-over-year growth of 2.7%. Meanwhile, our latest consensus estimate is calling for revenue of $60.49 billion, up 32.39% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.83 per share and revenue of $251.64 billion, which would represent changes of -3.53% and +29.65%, respectively, from the prior year.
Any recent changes to analyst estimates for CVS should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-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 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. The Zacks Consensus EPS estimate has moved 0.02% higher within the past month. CVS currently has a Zacks Rank of #4 (Sell).
In terms of valuation, CVS is currently trading at a Forward P/E ratio of 8.05. This valuation marks a discount compared to its industry's average Forward P/E of 12.87.
Also, we should mention that CVS 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 1.06 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 234, which puts it in the bottom 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.
To follow CVS in the coming trading sessions, be sure to utilize Zacks.com.