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CVS Health (CVS) Gains As Market Dips: What You Should Know

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CVS Health (CVS - Free Report) closed at $91.29 in the latest trading session, marking a +0.23% move from the prior day. This change outpaced the S&P 500's 0.13% loss on the day. Elsewhere, the Dow lost 0.15%, while the tech-heavy Nasdaq added 0.14%.

Coming into today, shares of the drugstore chain and pharmacy benefits manager had lost 5.57% in the past month. In that same time, the Retail-Wholesale sector gained 2.55%, while the S&P 500 lost 3.32%.

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 a year-over-year decline of 10.74%. Meanwhile, our latest consensus estimate is calling for revenue of $76.56 billion, up 5.43% from the prior-year quarter.

CVS's full-year Zacks Consensus Estimates are calling for earnings of $8.34 per share and revenue of $308.65 billion. These results would represent year-over-year changes of -0.71% and +5.66%, respectively.

Any recent changes to analyst estimates for CVS Health should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-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. 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 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 has moved 0.27% higher. CVS Health is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note CVS Health's current valuation metrics, including its Forward P/E ratio of 10.91. This represents a premium compared to its industry's average Forward P/E of 7.93.

It is also worth noting that CVS currently has a PEG ratio of 1.44. 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 industry currently had an average PEG ratio of 1.52 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 190, which puts it in the bottom 25% 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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