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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 $82.22, moving -1.46% from the previous trading session. This change lagged the S&P 500's 0.52% gain on the day.
Coming into today, shares of the drugstore chain and pharmacy benefits manager had lost 2.97% in the past month. In that same time, the Retail-Wholesale sector gained 4.22%, while the S&P 500 gained 2.25%.
CVS will be looking to display strength as it nears its next earnings release. On that day, CVS is projected to report earnings of $1.77 per share, which would represent a year-over-year decline of 32.95%. Meanwhile, our latest consensus estimate is calling for revenue of $70.08 billion, up 7.25% from the prior-year quarter.
CVS's full-year Zacks Consensus Estimates are calling for earnings of $7.65 per share and revenue of $281.08 billion. These results would represent year-over-year changes of +2% and +4.6%, respectively.
Investors should also note any 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 0.05% higher within the past month. CVS currently has a Zacks Rank of #3 (Hold).
Investors should also note CVS's current valuation metrics, including its Forward P/E ratio of 10.9. This represents a no noticeable deviation compared to its industry's average Forward P/E of 10.9.
It is also worth noting that CVS currently has a PEG ratio of 1.63. 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. CVS's industry had an average PEG ratio of 1.63 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 129, putting it in the top 50% 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.
You can find more information on all of these metrics, and much 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 $82.22, moving -1.46% from the previous trading session. This change lagged the S&P 500's 0.52% gain on the day.
Coming into today, shares of the drugstore chain and pharmacy benefits manager had lost 2.97% in the past month. In that same time, the Retail-Wholesale sector gained 4.22%, while the S&P 500 gained 2.25%.
CVS will be looking to display strength as it nears its next earnings release. On that day, CVS is projected to report earnings of $1.77 per share, which would represent a year-over-year decline of 32.95%. Meanwhile, our latest consensus estimate is calling for revenue of $70.08 billion, up 7.25% from the prior-year quarter.
CVS's full-year Zacks Consensus Estimates are calling for earnings of $7.65 per share and revenue of $281.08 billion. These results would represent year-over-year changes of +2% and +4.6%, respectively.
Investors should also note any 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 0.05% higher within the past month. CVS currently has a Zacks Rank of #3 (Hold).
Investors should also note CVS's current valuation metrics, including its Forward P/E ratio of 10.9. This represents a no noticeable deviation compared to its industry's average Forward P/E of 10.9.
It is also worth noting that CVS currently has a PEG ratio of 1.63. 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. CVS's industry had an average PEG ratio of 1.63 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 129, putting it in the top 50% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.