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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 $63.43, marking a +0.3% move from the previous day. The stock lagged the S&P 500's daily gain of 2.66%. Meanwhile, the Dow gained 2.21%, and the Nasdaq, a tech-heavy index, added 3.57%.
Prior to today's trading, shares of the drugstore chain and pharmacy benefits manager had gained 6.59% over the past month. This has lagged the Retail-Wholesale sector's gain of 16.18% and the S&P 500's gain of 12.74% in that time.
Investors will be hoping for strength from CVS as it approaches its next earnings release, which is expected to be May 6, 2020. The company is expected to report EPS of $1.63, up 0.62% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $63.07 billion, up 2.31% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.09 per share and revenue of $258.87 billion. These totals would mark changes of +0.14% and +0.82%, 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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection has moved 1.04% lower. CVS is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note CVS's current valuation metrics, including its Forward P/E ratio of 8.92. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 8.92.
Also, we should mention that CVS has a PEG ratio of 1.41. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CVS's industry had an average PEG ratio of 1.74 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 194, putting it in the bottom 24% 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) Gains But Lags Market: What You Should Know
In the latest trading session, CVS Health (CVS - Free Report) closed at $63.43, marking a +0.3% move from the previous day. The stock lagged the S&P 500's daily gain of 2.66%. Meanwhile, the Dow gained 2.21%, and the Nasdaq, a tech-heavy index, added 3.57%.
Prior to today's trading, shares of the drugstore chain and pharmacy benefits manager had gained 6.59% over the past month. This has lagged the Retail-Wholesale sector's gain of 16.18% and the S&P 500's gain of 12.74% in that time.
Investors will be hoping for strength from CVS as it approaches its next earnings release, which is expected to be May 6, 2020. The company is expected to report EPS of $1.63, up 0.62% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $63.07 billion, up 2.31% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.09 per share and revenue of $258.87 billion. These totals would mark changes of +0.14% and +0.82%, 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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection has moved 1.04% lower. CVS is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note CVS's current valuation metrics, including its Forward P/E ratio of 8.92. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 8.92.
Also, we should mention that CVS has a PEG ratio of 1.41. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CVS's industry had an average PEG ratio of 1.74 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 194, putting it in the bottom 24% 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.