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CVS Health (CVS) Dips More Than Broader Markets: What You Should Know
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CVS Health (CVS - Free Report) closed at $73.25 in the latest trading session, marking a -1.29% move from the prior day. This move lagged the S&P 500's daily loss of 0.6%. Meanwhile, the Dow lost 0.33%, and the Nasdaq, a tech-heavy index, lost 2.87%.
Heading into today, shares of the drugstore chain and pharmacy benefits manager had lost 0.27% over the past month, lagging the Retail-Wholesale sector's gain of 4.93% and the S&P 500's gain of 6.22% in that time.
Investors will be hoping for strength from CVS Health as it approaches its next earnings release, which is expected to be May 3, 2023. The company is expected to report EPS of $2.09, down 5.86% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $81.6 billion, up 6.22% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $8.75 per share and revenue of $335.22 billion, which would represent changes of +0.69% and +3.96%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for CVS Health. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate has moved 1.05% 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 8.48 right now. Its industry sports an average Forward P/E of 7.75, so we one might conclude that CVS Health is trading at a premium comparatively.
Meanwhile, CVS's PEG ratio is currently 1.16. 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 was holding an average PEG ratio of 1.86 at yesterday's closing price.
The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 104, putting it in the top 42% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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CVS Health (CVS) Dips More Than Broader Markets: What You Should Know
CVS Health (CVS - Free Report) closed at $73.25 in the latest trading session, marking a -1.29% move from the prior day. This move lagged the S&P 500's daily loss of 0.6%. Meanwhile, the Dow lost 0.33%, and the Nasdaq, a tech-heavy index, lost 2.87%.
Heading into today, shares of the drugstore chain and pharmacy benefits manager had lost 0.27% over the past month, lagging the Retail-Wholesale sector's gain of 4.93% and the S&P 500's gain of 6.22% in that time.
Investors will be hoping for strength from CVS Health as it approaches its next earnings release, which is expected to be May 3, 2023. The company is expected to report EPS of $2.09, down 5.86% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $81.6 billion, up 6.22% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $8.75 per share and revenue of $335.22 billion, which would represent changes of +0.69% and +3.96%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for CVS Health. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate has moved 1.05% 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 8.48 right now. Its industry sports an average Forward P/E of 7.75, so we one might conclude that CVS Health is trading at a premium comparatively.
Meanwhile, CVS's PEG ratio is currently 1.16. 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 was holding an average PEG ratio of 1.86 at yesterday's closing price.
The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 104, putting it in the top 42% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.