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CVS Health (CVS) Gains But Lags Market: What You Should Know
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In the latest trading session, CVS Health (CVS - Free Report) closed at $54.19, marking a +0.48% move from the previous day. This move lagged the S&P 500's daily gain of 1.16%. Meanwhile, the Dow gained 1.27%, and the Nasdaq, a tech-heavy index, added 1.29%.
Coming into today, shares of the drugstore chain and pharmacy benefits manager had lost 6.74% in the past month. In that same time, the Retail-Wholesale sector gained 3.18%, while the S&P 500 gained 1.92%.
CVS will be looking to display strength as it nears its next earnings release. In that report, analysts expect CVS to post earnings of $1.52 per share. This would mark 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.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.83 per share and revenue of $251.64 billion. These totals would mark changes of -3.53% and +29.65%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for CVS. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 0.05% higher within the past month. CVS currently has a Zacks Rank of #4 (Sell).
Looking at its valuation, CVS is holding a Forward P/E ratio of 7.9. This represents a discount compared to its industry's average Forward P/E of 13.01.
It is also worth noting that CVS currently has a PEG ratio of 1.04. 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. CVS's industry had an average PEG ratio of 1.04 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 230, putting it in the bottom 10% 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.
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
In the latest trading session, CVS Health (CVS - Free Report) closed at $54.19, marking a +0.48% move from the previous day. This move lagged the S&P 500's daily gain of 1.16%. Meanwhile, the Dow gained 1.27%, and the Nasdaq, a tech-heavy index, added 1.29%.
Coming into today, shares of the drugstore chain and pharmacy benefits manager had lost 6.74% in the past month. In that same time, the Retail-Wholesale sector gained 3.18%, while the S&P 500 gained 1.92%.
CVS will be looking to display strength as it nears its next earnings release. In that report, analysts expect CVS to post earnings of $1.52 per share. This would mark 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.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.83 per share and revenue of $251.64 billion. These totals would mark changes of -3.53% and +29.65%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for CVS. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 0.05% higher within the past month. CVS currently has a Zacks Rank of #4 (Sell).
Looking at its valuation, CVS is holding a Forward P/E ratio of 7.9. This represents a discount compared to its industry's average Forward P/E of 13.01.
It is also worth noting that CVS currently has a PEG ratio of 1.04. 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. CVS's industry had an average PEG ratio of 1.04 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 230, putting it in the bottom 10% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.