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CVS Health (CVS) Gains As Market Dips: What You Should Know

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CVS Health (CVS - Free Report) closed at $81.12 in the latest trading session, marking a +4.41% move from the prior day. This move outpaced the S&P 500's daily loss of 0.67%.

Wall Street will be looking for positivity from CVS as it approaches its next earnings report date. This is expected to be May 4, 2021. On that day, CVS is projected to report earnings of $1.72 per share, which would represent a year-over-year decline of 9.95%. Our most recent consensus estimate is calling for quarterly revenue of $68.44 billion, up 2.53% from the year-ago period.

CVS's full-year Zacks Consensus Estimates are calling for earnings of $7.55 per share and revenue of $280.22 billion. These results would represent year-over-year changes of +0.67% and +4.28%, respectively.

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. 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. 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.

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. Over the past month, the Zacks Consensus EPS estimate has moved 0.32% higher. 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 10.3 right now. This valuation marks a discount compared to its industry's average Forward P/E of 10.71.

We can also see that CVS currently has a PEG ratio of 1.54. 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 1.58 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 209, which puts it in the bottom 18% 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.


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