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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 $92.73, moving +0.55% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.74%. Meanwhile, the Dow gained 0.01%, and the Nasdaq, a tech-heavy index, lost 0.01%.
Heading into today, shares of the drugstore chain and pharmacy benefits manager had lost 5.13% over the past month, lagging the Retail-Wholesale sector's gain of 3.09% and the S&P 500's gain of 4.58% in that time.
CVS Health will be looking to display strength as it nears its next earnings release, which is expected to be November 2, 2022. 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. These revisions help to show the ever-changing nature of near-term business trends. 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. 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.
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 0.03% lower within the past month. CVS Health is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that CVS Health has a Forward P/E ratio of 10.8 right now. This valuation marks a premium compared to its industry's average Forward P/E of 7.89.
We can also see that CVS currently has a PEG ratio of 1.43. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Retail - Pharmacies and Drug Stores was holding an average PEG ratio of 1.51 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 91, which puts it in the top 37% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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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 $92.73, moving +0.55% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.74%. Meanwhile, the Dow gained 0.01%, and the Nasdaq, a tech-heavy index, lost 0.01%.
Heading into today, shares of the drugstore chain and pharmacy benefits manager had lost 5.13% over the past month, lagging the Retail-Wholesale sector's gain of 3.09% and the S&P 500's gain of 4.58% in that time.
CVS Health will be looking to display strength as it nears its next earnings release, which is expected to be November 2, 2022. 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. These revisions help to show the ever-changing nature of near-term business trends. 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. 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.
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 0.03% lower within the past month. CVS Health is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that CVS Health has a Forward P/E ratio of 10.8 right now. This valuation marks a premium compared to its industry's average Forward P/E of 7.89.
We can also see that CVS currently has a PEG ratio of 1.43. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Retail - Pharmacies and Drug Stores was holding an average PEG ratio of 1.51 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 91, which puts it in the top 37% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.