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CVS Health (CVS) Stock Sinks As Market Gains: What You Should Know
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CVS Health (CVS - Free Report) closed the most recent trading day at $65.67, moving -0.36% from the previous trading session. This change lagged the S&P 500's 0.47% gain on the day. Elsewhere, the Dow gained 0.68%, while the tech-heavy Nasdaq added 0.74%.
Prior to today's trading, shares of the drugstore chain and pharmacy benefits manager had lost 3.94% over the past month. This has lagged the Retail-Wholesale sector's gain of 6.95% and the S&P 500's gain of 7.71% in that time.
Investors will be hoping for strength from CVS as it approaches its next earnings release, which is expected to be February 20, 2019. In that report, analysts expect CVS to post earnings of $2.07 per share. This would mark year-over-year growth of 7.81%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $53.71 billion, up 11% from the year-ago period.
It is also important to note the recent changes to analyst estimates for CVS. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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 2.07% lower. CVS is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that CVS has a Forward P/E ratio of 8.91 right now. For comparison, its industry has an average Forward P/E of 10.96, which means CVS is trading at a discount to the group.
Investors should also note that CVS has a PEG ratio of 0.89 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Retail - Pharmacies and Drug Stores stocks are, on average, holding a PEG ratio of 1.08 based on yesterday's closing prices.
The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 112, which puts it in the top 44% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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CVS Health (CVS) Stock Sinks As Market Gains: What You Should Know
CVS Health (CVS - Free Report) closed the most recent trading day at $65.67, moving -0.36% from the previous trading session. This change lagged the S&P 500's 0.47% gain on the day. Elsewhere, the Dow gained 0.68%, while the tech-heavy Nasdaq added 0.74%.
Prior to today's trading, shares of the drugstore chain and pharmacy benefits manager had lost 3.94% over the past month. This has lagged the Retail-Wholesale sector's gain of 6.95% and the S&P 500's gain of 7.71% in that time.
Investors will be hoping for strength from CVS as it approaches its next earnings release, which is expected to be February 20, 2019. In that report, analysts expect CVS to post earnings of $2.07 per share. This would mark year-over-year growth of 7.81%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $53.71 billion, up 11% from the year-ago period.
It is also important to note the recent changes to analyst estimates for CVS. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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 2.07% lower. CVS is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that CVS has a Forward P/E ratio of 8.91 right now. For comparison, its industry has an average Forward P/E of 10.96, which means CVS is trading at a discount to the group.
Investors should also note that CVS has a PEG ratio of 0.89 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Retail - Pharmacies and Drug Stores stocks are, on average, holding a PEG ratio of 1.08 based on yesterday's closing prices.
The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 112, which puts it in the top 44% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.