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CVS Health (CVS) Stock Moves -0.29%: What You Should Know

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CVS Health (CVS - Free Report) closed at $76.08 in the latest trading session, marking a -0.29% move from the prior day. This change was narrower than the S&P 500's daily loss of 0.32%. Elsewhere, the Dow lost 0.32%, while the tech-heavy Nasdaq lost 0.11%.

Prior to today's trading, shares of the drugstore chain and pharmacy benefits manager had gained 10.13% over the past month. This has outpaced the Retail-Wholesale sector's gain of 1.64% and the S&P 500's gain of 4.4% in that time.

CVS will be looking to display strength as it nears its next earnings release. In that report, analysts expect CVS to post earnings of $1.69 per share. This would mark a year-over-year decline of 11.52%. Our most recent consensus estimate is calling for quarterly revenue of $68.44 billion, up 2.53% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.52 per share and revenue of $280.97 billion. These totals would mark changes of +0.27% and +4.56%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for CVS. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.47% higher 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 10.14 right now. This represents a discount compared to its industry's average Forward P/E of 10.53.

Also, we should mention that CVS has a PEG ratio of 1.5. 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 1.71 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 194, putting it in the bottom 24% 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.

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