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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 the most recent trading day at $94.06, moving +0.93% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.93%. At the same time, the Dow lost 0.43%, and the tech-heavy Nasdaq lost 0.14%.
Prior to today's trading, shares of the drugstore chain and pharmacy benefits manager had gained 0.89% over the past month. This has lagged the Retail-Wholesale sector's gain of 9.23% and the S&P 500's gain of 6.31% in that time.
Wall Street will be looking for positivity from CVS Health as it approaches its next earnings report date. This is expected to be August 3, 2022. The company is expected to report EPS of $2.16, down 10.74% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $76.57 billion, up 5.45% from the year-ago period.
CVS's full-year Zacks Consensus Estimates are calling for earnings of $8.34 per share and revenue of $308.62 billion. These results would represent year-over-year changes of -0.71% and +5.65%, 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 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. 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.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. 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 11.17 right now. For comparison, its industry has an average Forward P/E of 7.66, which means CVS Health is trading at a premium to the group.
Investors should also note that CVS has a PEG ratio of 1.46 right now. 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 1.5 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 214, which puts it in the bottom 16% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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 As Market Dips: What You Should Know
CVS Health (CVS - Free Report) closed the most recent trading day at $94.06, moving +0.93% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.93%. At the same time, the Dow lost 0.43%, and the tech-heavy Nasdaq lost 0.14%.
Prior to today's trading, shares of the drugstore chain and pharmacy benefits manager had gained 0.89% over the past month. This has lagged the Retail-Wholesale sector's gain of 9.23% and the S&P 500's gain of 6.31% in that time.
Wall Street will be looking for positivity from CVS Health as it approaches its next earnings report date. This is expected to be August 3, 2022. The company is expected to report EPS of $2.16, down 10.74% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $76.57 billion, up 5.45% from the year-ago period.
CVS's full-year Zacks Consensus Estimates are calling for earnings of $8.34 per share and revenue of $308.62 billion. These results would represent year-over-year changes of -0.71% and +5.65%, 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 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. 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.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. 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 11.17 right now. For comparison, its industry has an average Forward P/E of 7.66, which means CVS Health is trading at a premium to the group.
Investors should also note that CVS has a PEG ratio of 1.46 right now. 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 1.5 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 214, which puts it in the bottom 16% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.