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CVS Health (CVS) Gains But Lags Market: What You Should Know

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CVS Health (CVS - Free Report) closed at $98.16 in the latest trading session, marking a +0.98% move from the prior day. This move lagged the S&P 500's daily gain of 1.97%. Meanwhile, the Dow gained 1.88%, and the Nasdaq, a tech-heavy index, added 0.24%.

Heading into today, shares of the drugstore chain and pharmacy benefits manager had lost 1.61% over the past month, outpacing the Retail-Wholesale sector's loss of 9.37% and the S&P 500's loss of 9.93% in that time.

Wall Street will be looking for positivity from CVS Health as it approaches its next earnings report date. On that day, CVS Health is projected to report earnings of $1.99 per share, which would represent year-over-year growth of 1.02%. Our most recent consensus estimate is calling for quarterly revenue 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.

Investors should also note any recent changes to analyst estimates for CVS Health. Recent revisions tend to reflect the latest near-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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.09% lower. CVS Health is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, CVS Health is holding a Forward P/E ratio of 11.38. For comparison, its industry has an average Forward P/E of 7, which means CVS Health is trading at a premium to the group.

Also, we should mention that CVS has a PEG ratio of 1.48. 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. Retail - Pharmacies and Drug Stores stocks are, on average, holding a PEG ratio of 1.44 based on yesterday's closing prices.

The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 95, which puts it in the top 38% 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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