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CVS Health (CVS) Stock Sinks As Market Gains: What You Should Know
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CVS Health (CVS - Free Report) closed at $95 in the latest trading session, marking a -0.05% move from the prior day. This move lagged the S&P 500's daily gain of 0.1%. Elsewhere, the Dow gained 0.28%, while the tech-heavy Nasdaq lost 0.09%.
Coming into today, shares of the drugstore chain and pharmacy benefits manager had lost 2.9% in the past month. In that same time, the Retail-Wholesale sector lost 3.96%, while the S&P 500 lost 3.6%.
CVS Health will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.91, down 3.54% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $74.8 billion, down 2.35% from the year-ago period.
CVS's full-year Zacks Consensus Estimates are calling for earnings of $8.62 per share and revenue of $313.35 billion. These results would represent year-over-year changes of +2.62% and +7.27%, 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.03% lower. CVS Health is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, CVS Health is currently trading at a Forward P/E ratio of 11.03. For comparison, its industry has an average Forward P/E of 8.72, which means CVS Health is trading at a premium to the group.
It is also worth noting that CVS currently has a PEG ratio of 1.49. 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. CVS's industry had an average PEG ratio of 2.19 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 214, putting it in the bottom 16% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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CVS Health (CVS) Stock Sinks As Market Gains: What You Should Know
CVS Health (CVS - Free Report) closed at $95 in the latest trading session, marking a -0.05% move from the prior day. This move lagged the S&P 500's daily gain of 0.1%. Elsewhere, the Dow gained 0.28%, while the tech-heavy Nasdaq lost 0.09%.
Coming into today, shares of the drugstore chain and pharmacy benefits manager had lost 2.9% in the past month. In that same time, the Retail-Wholesale sector lost 3.96%, while the S&P 500 lost 3.6%.
CVS Health will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.91, down 3.54% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $74.8 billion, down 2.35% from the year-ago period.
CVS's full-year Zacks Consensus Estimates are calling for earnings of $8.62 per share and revenue of $313.35 billion. These results would represent year-over-year changes of +2.62% and +7.27%, 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.03% lower. CVS Health is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, CVS Health is currently trading at a Forward P/E ratio of 11.03. For comparison, its industry has an average Forward P/E of 8.72, which means CVS Health is trading at a premium to the group.
It is also worth noting that CVS currently has a PEG ratio of 1.49. 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. CVS's industry had an average PEG ratio of 2.19 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 214, putting it in the bottom 16% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.