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CVS Health (CVS) Gains As Market Dips: What You Should Know
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CVS Health (CVS - Free Report) closed the most recent trading day at $65.60, moving +0.14% from the previous trading session. This change outpaced the S&P 500's 0.32% loss on the day. At the same time, the Dow added 0.17%, and the tech-heavy Nasdaq lost 0.89%.
Prior to today's trading, shares of the drugstore chain and pharmacy benefits manager had lost 12.19% over the past month. This has lagged the Retail-Wholesale sector's loss of 1.56% and the S&P 500's loss of 0.12% in that time.
Wall Street will be looking for positivity from CVS Health as it approaches its next earnings report date. The company is expected to report EPS of $2.13, up 1.91% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $87.97 billion, up 8.39% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $8.61 per share and revenue of $351.8 billion, which would represent changes of -0.92% and +9.1%, respectively, from the prior year.
Any recent changes to analyst estimates for CVS Health should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. 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. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.05% lower. CVS Health is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note CVS Health's current valuation metrics, including its Forward P/E ratio of 7.61. This valuation marks a premium compared to its industry's average Forward P/E of 6.42.
It is also worth noting that CVS currently has a PEG ratio of 1.24. 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. Retail - Pharmacies and Drug Stores stocks are, on average, holding a PEG ratio of 1.21 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 108, which puts it in the top 43% 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.
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) Gains As Market Dips: What You Should Know
CVS Health (CVS - Free Report) closed the most recent trading day at $65.60, moving +0.14% from the previous trading session. This change outpaced the S&P 500's 0.32% loss on the day. At the same time, the Dow added 0.17%, and the tech-heavy Nasdaq lost 0.89%.
Prior to today's trading, shares of the drugstore chain and pharmacy benefits manager had lost 12.19% over the past month. This has lagged the Retail-Wholesale sector's loss of 1.56% and the S&P 500's loss of 0.12% in that time.
Wall Street will be looking for positivity from CVS Health as it approaches its next earnings report date. The company is expected to report EPS of $2.13, up 1.91% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $87.97 billion, up 8.39% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $8.61 per share and revenue of $351.8 billion, which would represent changes of -0.92% and +9.1%, respectively, from the prior year.
Any recent changes to analyst estimates for CVS Health should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. 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. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.05% lower. CVS Health is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note CVS Health's current valuation metrics, including its Forward P/E ratio of 7.61. This valuation marks a premium compared to its industry's average Forward P/E of 6.42.
It is also worth noting that CVS currently has a PEG ratio of 1.24. 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. Retail - Pharmacies and Drug Stores stocks are, on average, holding a PEG ratio of 1.21 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 108, which puts it in the top 43% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.