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CVS Health (CVS) Stock Moves -0.42%: What You Should Know

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CVS Health (CVS - Free Report) closed the most recent trading day at $105.34, moving -0.42% from the previous trading session. This change was narrower than the S&P 500's 1.42% loss on the day. At the same time, the Dow lost 0.49%, and the tech-heavy Nasdaq lost 0.47%.

Coming into today, shares of the drugstore chain and pharmacy benefits manager had gained 5.2% in the past month. In that same time, the Retail-Wholesale sector lost 3.85%, while the S&P 500 gained 0.39%.

Investors will be hoping for strength from CVS Health as it approaches its next earnings release, which is expected to be February 9, 2022. In that report, analysts expect CVS Health to post earnings of $1.64 per share. This would mark year-over-year growth of 26.15%. Meanwhile, our latest consensus estimate is calling for revenue of $75.06 billion, up 7.91% from the prior-year quarter.

Investors should also note any recent changes to analyst estimates for CVS Health. These revisions help to show the ever-changing nature of near-term business trends. 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. 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. Within the past 30 days, our consensus EPS projection has moved 0.15% higher. CVS Health is currently a Zacks Rank #3 (Hold).

Digging into valuation, CVS Health currently has a Forward P/E ratio of 12.84. For comparison, its industry has an average Forward P/E of 10.73, which means CVS Health is trading at a premium to the group.

It is also worth noting that CVS currently has a PEG ratio of 1.65. 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. Retail - Pharmacies and Drug Stores stocks are, on average, holding a PEG ratio of 2.02 based on yesterday's closing prices.

The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 203, putting it in the bottom 21% 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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