Back to top

Image: Bigstock

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

Read MoreHide Full Article

CVS Health (CVS - Free Report) closed the most recent trading day at $93.02, moving -0.58% from the previous trading session. This move lagged the S&P 500's daily loss of 0.41%. Elsewhere, the Dow gained 0.11%, while the tech-heavy Nasdaq lost 6.67%.

Prior to today's trading, shares of the drugstore chain and pharmacy benefits manager had lost 6.82% over the past month. This has lagged the Retail-Wholesale sector's loss of 4.26% and the S&P 500's loss of 4.4% in that time.

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. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales 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.

Investors should also note any recent changes to analyst estimates for CVS Health. These revisions help to show the ever-changing nature of near-term business trends. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Within the past 30 days, our consensus EPS projection remained stagnant. 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 10.86 right now. This valuation marks a premium compared to its industry's average Forward P/E of 8.57.

Also, we should mention that CVS has a PEG ratio of 1.47. 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. CVS's industry had an average PEG ratio of 2.15 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 217, putting it in the bottom 14% 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

See More Zacks Research for These Tickers

Normally $25 each - click below to receive one report FREE:

CVS Health Corporation (CVS) - free report >>

Published in