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CVS Health (CVS) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, CVS Health (CVS - Free Report) closed at $97.21, marking a -0.54% move from the previous day. This move lagged the S&P 500's daily loss of 0.21%. Meanwhile, the Dow lost 0.43%, and the Nasdaq, a tech-heavy index, added 0.01%.

Heading into today, shares of the drugstore chain and pharmacy benefits manager had lost 2.58% over the past month, outpacing the Retail-Wholesale sector's loss of 9.13% and the S&P 500's loss of 9.7% in that time.

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 $1.99 per share. This would mark year-over-year growth of 1.02%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $76.53 billion, up 3.7% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $8.54 per share and revenue of $311.69 billion, which would represent changes of +1.67% and +6.7%, respectively, from the prior year.

Any recent changes to analyst estimates for CVS Health should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 has moved 0.09% lower within the past month. CVS Health is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, CVS Health is currently trading at a Forward P/E ratio of 11.44. This represents a premium compared to its industry's average Forward P/E of 7.06.

It is also worth noting that CVS currently has a PEG ratio of 1.49. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CVS's industry had an average PEG ratio of 1.45 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 96, putting it in the top 39% 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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