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CVS Health (CVS) Stock Drops Despite Market Gains: Important Facts to Note
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In the latest market close, CVS Health (CVS - Free Report) reached $73.36, with a -1.45% movement compared to the previous day. The stock's performance was behind the S&P 500's daily gain of 0.15%. Elsewhere, the Dow saw a downswing of 0.02%, while the tech-heavy Nasdaq appreciated by 0.32%.
Shares of the drugstore chain and pharmacy benefits manager have depreciated by 1.98% over the course of the past month, underperforming the Retail-Wholesale sector's gain of 1.12% and the S&P 500's gain of 1.65%.
The investment community will be paying close attention to the earnings performance of CVS Health in its upcoming release. The company is slated to reveal its earnings on May 1, 2024. In that report, analysts expect CVS Health to post earnings of $1.69 per share. This would mark a year-over-year decline of 23.18%. In the meantime, our current consensus estimate forecasts the revenue to be $89.33 billion, indicating a 4.75% growth compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $8.33 per share and a revenue of $370.61 billion, indicating changes of -4.69% and +3.59%, respectively, from the former year.
Investors should also note any recent changes to analyst estimates for CVS Health. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.1% lower within the past month. CVS Health is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, CVS Health is currently trading at a Forward P/E ratio of 8.94. This expresses a premium compared to the average Forward P/E of 5.93 of its industry.
It's also important to note that CVS currently trades at a PEG ratio of 0.98. 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. The Retail - Pharmacies and Drug Stores industry currently had an average PEG ratio of 1.09 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 235, which puts it in the bottom 7% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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CVS Health (CVS) Stock Drops Despite Market Gains: Important Facts to Note
In the latest market close, CVS Health (CVS - Free Report) reached $73.36, with a -1.45% movement compared to the previous day. The stock's performance was behind the S&P 500's daily gain of 0.15%. Elsewhere, the Dow saw a downswing of 0.02%, while the tech-heavy Nasdaq appreciated by 0.32%.
Shares of the drugstore chain and pharmacy benefits manager have depreciated by 1.98% over the course of the past month, underperforming the Retail-Wholesale sector's gain of 1.12% and the S&P 500's gain of 1.65%.
The investment community will be paying close attention to the earnings performance of CVS Health in its upcoming release. The company is slated to reveal its earnings on May 1, 2024. In that report, analysts expect CVS Health to post earnings of $1.69 per share. This would mark a year-over-year decline of 23.18%. In the meantime, our current consensus estimate forecasts the revenue to be $89.33 billion, indicating a 4.75% growth compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $8.33 per share and a revenue of $370.61 billion, indicating changes of -4.69% and +3.59%, respectively, from the former year.
Investors should also note any recent changes to analyst estimates for CVS Health. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.1% lower within the past month. CVS Health is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, CVS Health is currently trading at a Forward P/E ratio of 8.94. This expresses a premium compared to the average Forward P/E of 5.93 of its industry.
It's also important to note that CVS currently trades at a PEG ratio of 0.98. 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. The Retail - Pharmacies and Drug Stores industry currently had an average PEG ratio of 1.09 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 235, which puts it in the bottom 7% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.