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CVS Health (CVS) Dips More Than Broader Markets: What You Should Know
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CVS Health (CVS - Free Report) closed at $65.34 in the latest trading session, marking a -0.71% move from the prior day. This change lagged the S&P 500's 0.53% loss on the day. At the same time, the Dow lost 0.36%, and the tech-heavy Nasdaq lost 0.94%.
Coming into today, shares of the drugstore chain and pharmacy benefits manager had lost 10.3% in the past month. In that same time, the Retail-Wholesale sector lost 0.45%, while the S&P 500 lost 1.47%.
Wall Street will be looking for positivity from CVS as it approaches its next earnings report date. This is expected to be February 14, 2019. On that day, CVS is projected to report earnings of $2.14 per share, which would represent year-over-year growth of 11.46%. Meanwhile, our latest consensus estimate is calling for revenue of $49.20 billion, up 1.69% from the prior-year quarter.
Investors should also note any recent changes to analyst estimates for CVS. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 4.36% higher. CVS is currently sporting a Zacks Rank of #2 (Buy).
In terms of valuation, CVS is currently trading at a Forward P/E ratio of 8.68. Its industry sports an average Forward P/E of 10.99, so we one might conclude that CVS is trading at a discount comparatively.
Investors should also note that CVS has a PEG ratio of 0.79 right now. 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 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 74, putting it in the top 29% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
To follow CVS in the coming trading sessions, be sure to utilize Zacks.com.
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CVS Health (CVS) Dips More Than Broader Markets: What You Should Know
CVS Health (CVS - Free Report) closed at $65.34 in the latest trading session, marking a -0.71% move from the prior day. This change lagged the S&P 500's 0.53% loss on the day. At the same time, the Dow lost 0.36%, and the tech-heavy Nasdaq lost 0.94%.
Coming into today, shares of the drugstore chain and pharmacy benefits manager had lost 10.3% in the past month. In that same time, the Retail-Wholesale sector lost 0.45%, while the S&P 500 lost 1.47%.
Wall Street will be looking for positivity from CVS as it approaches its next earnings report date. This is expected to be February 14, 2019. On that day, CVS is projected to report earnings of $2.14 per share, which would represent year-over-year growth of 11.46%. Meanwhile, our latest consensus estimate is calling for revenue of $49.20 billion, up 1.69% from the prior-year quarter.
Investors should also note any recent changes to analyst estimates for CVS. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 4.36% higher. CVS is currently sporting a Zacks Rank of #2 (Buy).
In terms of valuation, CVS is currently trading at a Forward P/E ratio of 8.68. Its industry sports an average Forward P/E of 10.99, so we one might conclude that CVS is trading at a discount comparatively.
Investors should also note that CVS has a PEG ratio of 0.79 right now. 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 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 74, putting it in the top 29% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
To follow CVS in the coming trading sessions, be sure to utilize Zacks.com.