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CVS Health (CVS) Gains But Lags Market: What You Should Know
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CVS Health (CVS - Free Report) closed at $101.31 in the latest trading session, marking a +0.41% move from the prior day. This change lagged the S&P 500's 0.62% gain on the day. At the same time, the Dow added 0.55%, and the tech-heavy Nasdaq lost 0.03%.
Heading into today, shares of the drugstore chain and pharmacy benefits manager had gained 9.35% over the past month, outpacing the Retail-Wholesale sector's loss of 4.49% and the S&P 500's gain of 0.87% in that time.
Investors will be hoping for strength from CVS Health as it approaches its next earnings release. In that report, analysts expect CVS Health to post earnings of $1.59 per share. This would mark year-over-year growth of 22.31%. Meanwhile, our latest consensus estimate is calling for revenue of $75.06 billion, up 7.91% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.02 per share and revenue of $290.53 billion. These totals would mark changes of +6.93% and +8.12%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for CVS Health. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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 0.72% higher within the past month. CVS Health currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, CVS Health is holding a Forward P/E ratio of 12.63. This valuation marks a premium compared to its industry's average Forward P/E of 10.28.
Also, we should mention that CVS has a PEG ratio of 1.87. 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 2.1 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 115, which puts it in the top 46% 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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CVS Health (CVS) Gains But Lags Market: What You Should Know
CVS Health (CVS - Free Report) closed at $101.31 in the latest trading session, marking a +0.41% move from the prior day. This change lagged the S&P 500's 0.62% gain on the day. At the same time, the Dow added 0.55%, and the tech-heavy Nasdaq lost 0.03%.
Heading into today, shares of the drugstore chain and pharmacy benefits manager had gained 9.35% over the past month, outpacing the Retail-Wholesale sector's loss of 4.49% and the S&P 500's gain of 0.87% in that time.
Investors will be hoping for strength from CVS Health as it approaches its next earnings release. In that report, analysts expect CVS Health to post earnings of $1.59 per share. This would mark year-over-year growth of 22.31%. Meanwhile, our latest consensus estimate is calling for revenue of $75.06 billion, up 7.91% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.02 per share and revenue of $290.53 billion. These totals would mark changes of +6.93% and +8.12%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for CVS Health. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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 0.72% higher within the past month. CVS Health currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, CVS Health is holding a Forward P/E ratio of 12.63. This valuation marks a premium compared to its industry's average Forward P/E of 10.28.
Also, we should mention that CVS has a PEG ratio of 1.87. 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 2.1 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 115, which puts it in the top 46% 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.