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CVS Health (CVS) Dips More Than Broader Markets: What You Should Know
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CVS Health (CVS - Free Report) closed the most recent trading day at $103.55, moving -1.08% from the previous trading session. This change lagged the S&P 500's daily loss of 0.63%. Elsewhere, the Dow lost 0.19%, while the tech-heavy Nasdaq lost 0.34%.
Coming into today, shares of the drugstore chain and pharmacy benefits manager had gained 2.58% in the past month. In that same time, the Retail-Wholesale sector gained 5.75%, while the S&P 500 gained 6.02%.
Wall Street will be looking for positivity from CVS Health as it approaches its next earnings report date. In that report, analysts expect CVS Health to post earnings of $2.16 per share. This would mark year-over-year growth of 5.88%. Our most recent consensus estimate is calling for quarterly revenue of $75.17 billion, up 8.79% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.26 per share and revenue of $307.17 billion. These totals would mark changes of -1.67% and +5.16%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for CVS Health. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection remained stagnant. CVS Health is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note CVS Health's current valuation metrics, including its Forward P/E ratio of 12.67. For comparison, its industry has an average Forward P/E of 11.09, which means CVS Health is trading at a premium to the group.
Also, we should mention that CVS has a PEG ratio of 1.56. 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 1.9 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 204, putting it in the bottom 20% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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CVS Health (CVS) Dips More Than Broader Markets: What You Should Know
CVS Health (CVS - Free Report) closed the most recent trading day at $103.55, moving -1.08% from the previous trading session. This change lagged the S&P 500's daily loss of 0.63%. Elsewhere, the Dow lost 0.19%, while the tech-heavy Nasdaq lost 0.34%.
Coming into today, shares of the drugstore chain and pharmacy benefits manager had gained 2.58% in the past month. In that same time, the Retail-Wholesale sector gained 5.75%, while the S&P 500 gained 6.02%.
Wall Street will be looking for positivity from CVS Health as it approaches its next earnings report date. In that report, analysts expect CVS Health to post earnings of $2.16 per share. This would mark year-over-year growth of 5.88%. Our most recent consensus estimate is calling for quarterly revenue of $75.17 billion, up 8.79% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.26 per share and revenue of $307.17 billion. These totals would mark changes of -1.67% and +5.16%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for CVS Health. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection remained stagnant. CVS Health is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note CVS Health's current valuation metrics, including its Forward P/E ratio of 12.67. For comparison, its industry has an average Forward P/E of 11.09, which means CVS Health is trading at a premium to the group.
Also, we should mention that CVS has a PEG ratio of 1.56. 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 1.9 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 204, putting it in the bottom 20% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.