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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 $103.86, marking a +0.43% move from the previous day. The stock lagged the S&P 500's daily gain of 1.61%. Elsewhere, the Dow gained 1.45%, while the tech-heavy Nasdaq added 0.36%.
Heading into today, shares of the drugstore chain and pharmacy benefits manager had lost 3.7% over the past month, outpacing the Retail-Wholesale sector's loss of 3.96% and lagging the S&P 500's loss of 1.42% 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%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $75.54 billion, up 9.32% 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 might also notice recent changes to analyst estimates for CVS Health. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
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. The Zacks Consensus EPS estimate has moved 0.31% lower within the past month. CVS Health currently has a Zacks Rank of #3 (Hold).
Digging into valuation, CVS Health currently has a Forward P/E ratio of 12.55. For comparison, its industry has an average Forward P/E of 8.81, which means CVS Health is trading at a premium to the group.
We can also see that CVS currently has a PEG ratio of 1.55. 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 1.99 at yesterday's closing price.
The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 248, which puts it in the bottom 2% 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.
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 $103.86, marking a +0.43% move from the previous day. The stock lagged the S&P 500's daily gain of 1.61%. Elsewhere, the Dow gained 1.45%, while the tech-heavy Nasdaq added 0.36%.
Heading into today, shares of the drugstore chain and pharmacy benefits manager had lost 3.7% over the past month, outpacing the Retail-Wholesale sector's loss of 3.96% and lagging the S&P 500's loss of 1.42% 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%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $75.54 billion, up 9.32% 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 might also notice recent changes to analyst estimates for CVS Health. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
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. The Zacks Consensus EPS estimate has moved 0.31% lower within the past month. CVS Health currently has a Zacks Rank of #3 (Hold).
Digging into valuation, CVS Health currently has a Forward P/E ratio of 12.55. For comparison, its industry has an average Forward P/E of 8.81, which means CVS Health is trading at a premium to the group.
We can also see that CVS currently has a PEG ratio of 1.55. 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 1.99 at yesterday's closing price.
The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 248, which puts it in the bottom 2% 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.
To follow CVS in the coming trading sessions, be sure to utilize Zacks.com.