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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 at $71.99 in the latest trading session, marking a +1.82% move from the prior day. This move outpaced the S&P 500's daily loss of 0.22%. Elsewhere, the Dow lost 0.31%, while the tech-heavy Nasdaq lost 0.23%.
Prior to today's trading, shares of the drugstore chain and pharmacy benefits manager had gained 5.4% over the past month. This has outpaced the Retail-Wholesale sector's gain of 1.57% and the S&P 500's gain of 2.08% in that time.
Investors will be hoping for strength from CVS Health as it approaches its next earnings release. The company is expected to report EPS of $2.13, up 1.91% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $87.97 billion, up 8.39% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.61 per share and revenue of $351.8 billion. These totals would mark changes of -0.92% and +9.1%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for CVS Health. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.07% higher. CVS Health is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that CVS Health has a Forward P/E ratio of 8.22 right now. This represents a premium compared to its industry's average Forward P/E of 6.3.
It is also worth noting that CVS currently has a PEG ratio of 1.34. 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. CVS's industry had an average PEG ratio of 1.25 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 113, which puts it in the top 45% 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) Gains As Market Dips: What You Should Know
CVS Health (CVS - Free Report) closed at $71.99 in the latest trading session, marking a +1.82% move from the prior day. This move outpaced the S&P 500's daily loss of 0.22%. Elsewhere, the Dow lost 0.31%, while the tech-heavy Nasdaq lost 0.23%.
Prior to today's trading, shares of the drugstore chain and pharmacy benefits manager had gained 5.4% over the past month. This has outpaced the Retail-Wholesale sector's gain of 1.57% and the S&P 500's gain of 2.08% in that time.
Investors will be hoping for strength from CVS Health as it approaches its next earnings release. The company is expected to report EPS of $2.13, up 1.91% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $87.97 billion, up 8.39% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.61 per share and revenue of $351.8 billion. These totals would mark changes of -0.92% and +9.1%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for CVS Health. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.07% higher. CVS Health is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that CVS Health has a Forward P/E ratio of 8.22 right now. This represents a premium compared to its industry's average Forward P/E of 6.3.
It is also worth noting that CVS currently has a PEG ratio of 1.34. 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. CVS's industry had an average PEG ratio of 1.25 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 113, which puts it in the top 45% 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.