Back to top

Image: Bigstock

CVS Health (CVS) Stock Moves -0.11%: What You Should Know

Read MoreHide Full Article

In the latest trading session, CVS Health (CVS - Free Report) closed at $84.28, marking a -0.11% move from the previous day. This change was narrower than the S&P 500's 0.69% loss on the day.

Coming into today, shares of the drugstore chain and pharmacy benefits manager had gained 0.69% in the past month. In that same time, the Retail-Wholesale sector lost 5.22%, while the S&P 500 lost 2.58%.

CVS will be looking to display strength as it nears its next earnings release, which is expected to be November 3, 2021. The company is expected to report EPS of $1.80, up 8.43% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $70.23 billion, up 4.74% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.84 per share and revenue of $283.06 billion. These totals would mark changes of +4.53% and +5.34%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for CVS. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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, 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 remained stagnant 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 10.77. This represents a premium compared to its industry's average Forward P/E of 9.37.

Investors should also note that CVS has a PEG ratio of 1.69 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 was holding an average PEG ratio of 1.56 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 247, putting it in the bottom 3% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


CVS Health Corporation (CVS) - free report >>

Published in