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CVS Health (CVS) Gains But Lags Market: What You Should Know
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In the latest trading session, CVS Health (CVS - Free Report) closed at $104.98, marking a +0.32% move from the previous day. This move lagged the S&P 500's daily gain of 1.12%. Meanwhile, the Dow gained 1.01%, and the Nasdaq, a tech-heavy index, lost 0.08%.
Prior to today's trading, shares of the drugstore chain and pharmacy benefits manager had lost 2.19% over the past month. This has lagged the Retail-Wholesale sector's gain of 5.08% and the S&P 500's gain of 4.63% in that time.
Investors will be hoping for strength from CVS Health as it approaches its next earnings release, which is expected to be May 4, 2022. In that report, analysts expect CVS Health to post earnings of $2.15 per share. This would mark year-over-year growth of 5.39%. Our most recent consensus estimate is calling for quarterly revenue of $75.63 billion, up 9.45% from the year-ago period.
CVS's full-year Zacks Consensus Estimates are calling for earnings of $8.24 per share and revenue of $307.26 billion. These results would represent year-over-year changes of -1.9% and +5.19%, respectively.
Investors should also note any recent changes to analyst estimates for CVS Health. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.31% lower. CVS Health is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that CVS Health has a Forward P/E ratio of 12.7 right now. This represents a premium compared to its industry's average Forward P/E of 8.76.
Also, we should mention that CVS has a PEG ratio of 1.57. 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. CVS's industry had an average PEG ratio of 1.99 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 196, putting it in the bottom 23% 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.
To follow CVS in the coming trading sessions, be sure to utilize Zacks.com.
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CVS Health (CVS) Gains But Lags Market: What You Should Know
In the latest trading session, CVS Health (CVS - Free Report) closed at $104.98, marking a +0.32% move from the previous day. This move lagged the S&P 500's daily gain of 1.12%. Meanwhile, the Dow gained 1.01%, and the Nasdaq, a tech-heavy index, lost 0.08%.
Prior to today's trading, shares of the drugstore chain and pharmacy benefits manager had lost 2.19% over the past month. This has lagged the Retail-Wholesale sector's gain of 5.08% and the S&P 500's gain of 4.63% in that time.
Investors will be hoping for strength from CVS Health as it approaches its next earnings release, which is expected to be May 4, 2022. In that report, analysts expect CVS Health to post earnings of $2.15 per share. This would mark year-over-year growth of 5.39%. Our most recent consensus estimate is calling for quarterly revenue of $75.63 billion, up 9.45% from the year-ago period.
CVS's full-year Zacks Consensus Estimates are calling for earnings of $8.24 per share and revenue of $307.26 billion. These results would represent year-over-year changes of -1.9% and +5.19%, respectively.
Investors should also note any recent changes to analyst estimates for CVS Health. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.31% lower. CVS Health is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that CVS Health has a Forward P/E ratio of 12.7 right now. This represents a premium compared to its industry's average Forward P/E of 8.76.
Also, we should mention that CVS has a PEG ratio of 1.57. 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. CVS's industry had an average PEG ratio of 1.99 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 196, putting it in the bottom 23% 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.
To follow CVS in the coming trading sessions, be sure to utilize Zacks.com.