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CVS Health (CVS) Outpaces Stock Market Gains: What You Should Know
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CVS Health (CVS - Free Report) closed at $52.96 in the latest trading session, marking a +1.01% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.88%. Elsewhere, the Dow gained 0.55%, while the tech-heavy Nasdaq added 1.32%.
Coming into today, shares of the drugstore chain and pharmacy benefits manager had lost 4.59% in the past month. In that same time, the Retail-Wholesale sector gained 4.72%, while the S&P 500 gained 3.96%.
Investors will be hoping for strength from CVS as it approaches its next earnings release, which is expected to be May 1, 2019. On that day, CVS is projected to report earnings of $1.51 per share, which would represent year-over-year growth of 2.03%. Meanwhile, our latest consensus estimate is calling for revenue of $60.52 billion, up 32.44% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.79 per share and revenue of $251.59 billion. These totals would mark changes of -4.1% and +29.62%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for CVS. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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. The Zacks Consensus EPS estimate has moved 0.09% lower within the past month. CVS currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that CVS has a Forward P/E ratio of 7.72 right now. Its industry sports an average Forward P/E of 12.12, so we one might conclude that CVS is trading at a discount comparatively.
We can also see that CVS currently has a PEG ratio of 1.03. 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. The Retail - Pharmacies and Drug Stores was holding an average PEG ratio of 1.03 at yesterday's closing price.
The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 237, putting it in the bottom 8% 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) Outpaces Stock Market Gains: What You Should Know
CVS Health (CVS - Free Report) closed at $52.96 in the latest trading session, marking a +1.01% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.88%. Elsewhere, the Dow gained 0.55%, while the tech-heavy Nasdaq added 1.32%.
Coming into today, shares of the drugstore chain and pharmacy benefits manager had lost 4.59% in the past month. In that same time, the Retail-Wholesale sector gained 4.72%, while the S&P 500 gained 3.96%.
Investors will be hoping for strength from CVS as it approaches its next earnings release, which is expected to be May 1, 2019. On that day, CVS is projected to report earnings of $1.51 per share, which would represent year-over-year growth of 2.03%. Meanwhile, our latest consensus estimate is calling for revenue of $60.52 billion, up 32.44% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.79 per share and revenue of $251.59 billion. These totals would mark changes of -4.1% and +29.62%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for CVS. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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. The Zacks Consensus EPS estimate has moved 0.09% lower within the past month. CVS currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that CVS has a Forward P/E ratio of 7.72 right now. Its industry sports an average Forward P/E of 12.12, so we one might conclude that CVS is trading at a discount comparatively.
We can also see that CVS currently has a PEG ratio of 1.03. 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. The Retail - Pharmacies and Drug Stores was holding an average PEG ratio of 1.03 at yesterday's closing price.
The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 237, putting it in the bottom 8% 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.