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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 $91.98 in the latest trading session, marking a -1% move from the prior day. This change lagged the S&P 500's daily gain of 0.75%. Meanwhile, the Dow gained 0.4%, and the Nasdaq, a tech-heavy index, added 10.36%.
Prior to today's trading, shares of the drugstore chain and pharmacy benefits manager had lost 8.18% over the past month. This has lagged the Retail-Wholesale sector's loss of 6.09% and the S&P 500's loss of 5.98% 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 $1.91 per share, which would represent a year-over-year decline of 3.54%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $74.8 billion, down 2.35% from the year-ago period.
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. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate has moved 0.01% lower within the past month. CVS Health is currently a Zacks Rank #3 (Hold).
Investors should also note CVS Health's current valuation metrics, including its Forward P/E ratio of 10.52. This valuation marks a premium compared to its industry's average Forward P/E of 8.25.
Meanwhile, CVS's PEG ratio is currently 1.42. 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 2.08 as of yesterday's close.
The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 47, which puts it in the top 19% 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.
You can find more information on all of these metrics, and much 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 $91.98 in the latest trading session, marking a -1% move from the prior day. This change lagged the S&P 500's daily gain of 0.75%. Meanwhile, the Dow gained 0.4%, and the Nasdaq, a tech-heavy index, added 10.36%.
Prior to today's trading, shares of the drugstore chain and pharmacy benefits manager had lost 8.18% over the past month. This has lagged the Retail-Wholesale sector's loss of 6.09% and the S&P 500's loss of 5.98% 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 $1.91 per share, which would represent a year-over-year decline of 3.54%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $74.8 billion, down 2.35% from the year-ago period.
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. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate has moved 0.01% lower within the past month. CVS Health is currently a Zacks Rank #3 (Hold).
Investors should also note CVS Health's current valuation metrics, including its Forward P/E ratio of 10.52. This valuation marks a premium compared to its industry's average Forward P/E of 8.25.
Meanwhile, CVS's PEG ratio is currently 1.42. 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 2.08 as of yesterday's close.
The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 47, which puts it in the top 19% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.