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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 $77.54 in the latest trading session, marking a -0.27% move from the prior day. This move lagged the S&P 500's daily gain of 0.36%. Meanwhile, the Dow gained 0.01%, and the Nasdaq, a tech-heavy index, added 1.91%.
Coming into today, shares of the drugstore chain and pharmacy benefits manager had lost 2.58% in the past month. In that same time, the Retail-Wholesale sector gained 1.36%, while the S&P 500 gained 1.24%.
CVS Health will be looking to display strength as it nears its next earnings release, which is expected to be May 3, 2023. On that day, CVS Health is projected to report earnings of $2.12 per share, which would represent a year-over-year decline of 4.5%. Our most recent consensus estimate is calling for quarterly revenue of $81.41 billion, up 5.97% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $8.83 per share and revenue of $333.43 billion, which would represent changes of +1.61% and +3.4%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for CVS Health. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.07% 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 8.8. Its industry sports an average Forward P/E of 8.04, so we one might conclude that CVS Health is trading at a premium comparatively.
Investors should also note that CVS has a PEG ratio of 1.2 right now. 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. The Retail - Pharmacies and Drug Stores industry currently had an average PEG ratio of 1.93 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 53, which puts it in the top 22% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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 $77.54 in the latest trading session, marking a -0.27% move from the prior day. This move lagged the S&P 500's daily gain of 0.36%. Meanwhile, the Dow gained 0.01%, and the Nasdaq, a tech-heavy index, added 1.91%.
Coming into today, shares of the drugstore chain and pharmacy benefits manager had lost 2.58% in the past month. In that same time, the Retail-Wholesale sector gained 1.36%, while the S&P 500 gained 1.24%.
CVS Health will be looking to display strength as it nears its next earnings release, which is expected to be May 3, 2023. On that day, CVS Health is projected to report earnings of $2.12 per share, which would represent a year-over-year decline of 4.5%. Our most recent consensus estimate is calling for quarterly revenue of $81.41 billion, up 5.97% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $8.83 per share and revenue of $333.43 billion, which would represent changes of +1.61% and +3.4%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for CVS Health. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.07% 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 8.8. Its industry sports an average Forward P/E of 8.04, so we one might conclude that CVS Health is trading at a premium comparatively.
Investors should also note that CVS has a PEG ratio of 1.2 right now. 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. The Retail - Pharmacies and Drug Stores industry currently had an average PEG ratio of 1.93 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 53, which puts it in the top 22% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.