In the latest trading session, CVS Health (CVS - Free Report) closed at $57.41, marking a -1.02% move from the previous day. This change lagged the S&P 500's 0.05% gain on the day. At the same time, the Dow added 0.48%, and the tech-heavy Nasdaq lost 0.61%.
Prior to today's trading, shares of the drugstore chain and pharmacy benefits manager had lost 10.36% over the past month. This has lagged the Retail-Wholesale sector's gain of 2.24% and the S&P 500's loss of 0.52% in that time.
CVS will be looking to display strength as it nears its next earnings release. On that day, CVS is projected to report earnings of $1.38 per share, which would represent a year-over-year decline of 25%. Meanwhile, our latest consensus estimate is calling for revenue of $66.31 billion, up 2.31% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.23 per share and revenue of $266.74 billion. These totals would mark changes of +2.12% and +3.88%, respectively, from last year.
Any recent changes to analyst estimates for CVS should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. The Zacks Consensus EPS estimate has moved 0.02% lower within the past month. 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 8.03. Its industry sports an average Forward P/E of 11.14, so we one might conclude that CVS is trading at a discount comparatively.
Investors should also note that CVS has a PEG ratio of 1.44 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. The Retail - Pharmacies and Drug Stores industry currently had an average PEG ratio of 1.4 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 213, which puts it in the bottom 17% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.