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CVS Health (CVS) Outpaces Stock Market Gains: What You Should Know
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In the latest trading session, CVS Health (CVS - Free Report) closed at $69.41, marking a +0.93% move from the previous day. This move outpaced the S&P 500's daily gain of 0.37%. Elsewhere, the Dow lost 0.01%, while the tech-heavy Nasdaq lost 1.26%.
Heading into today, shares of the drugstore chain and pharmacy benefits manager had lost 0.07% over the past month, lagging the Retail-Wholesale sector's gain of 3.11% and the S&P 500's gain of 4.31% in that time.
CVS Health will be looking to display strength as it nears its next earnings release. In that report, analysts expect CVS Health to post earnings of $2.12 per share. This would mark a year-over-year decline of 11.67%. Our most recent consensus estimate is calling for quarterly revenue of $86.49 billion, up 7.26% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $8.61 per share and revenue of $348.42 billion, which would represent changes of -0.92% and +8.05%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for CVS Health. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Within the past 30 days, our consensus EPS projection has moved 0.16% lower. 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 7.98 right now. This represents a premium compared to its industry's average Forward P/E of 7.09.
Also, we should mention that CVS has a PEG ratio of 1.25. 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. Retail - Pharmacies and Drug Stores stocks are, on average, holding a PEG ratio of 1.24 based on yesterday's closing prices.
The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 225, which puts it in the bottom 11% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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CVS Health (CVS) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, CVS Health (CVS - Free Report) closed at $69.41, marking a +0.93% move from the previous day. This move outpaced the S&P 500's daily gain of 0.37%. Elsewhere, the Dow lost 0.01%, while the tech-heavy Nasdaq lost 1.26%.
Heading into today, shares of the drugstore chain and pharmacy benefits manager had lost 0.07% over the past month, lagging the Retail-Wholesale sector's gain of 3.11% and the S&P 500's gain of 4.31% in that time.
CVS Health will be looking to display strength as it nears its next earnings release. In that report, analysts expect CVS Health to post earnings of $2.12 per share. This would mark a year-over-year decline of 11.67%. Our most recent consensus estimate is calling for quarterly revenue of $86.49 billion, up 7.26% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $8.61 per share and revenue of $348.42 billion, which would represent changes of -0.92% and +8.05%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for CVS Health. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Within the past 30 days, our consensus EPS projection has moved 0.16% lower. 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 7.98 right now. This represents a premium compared to its industry's average Forward P/E of 7.09.
Also, we should mention that CVS has a PEG ratio of 1.25. 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. Retail - Pharmacies and Drug Stores stocks are, on average, holding a PEG ratio of 1.24 based on yesterday's closing prices.
The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 225, which puts it in the bottom 11% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.