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CVS Health (CVS) Surpasses Market Returns: Some Facts Worth Knowing
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In the latest trading session, CVS Health (CVS - Free Report) closed at $78.62, marking a +1.79% move from the previous day. This change outpaced the S&P 500's 1.03% gain on the day. On the other hand, the Dow registered a gain of 0.87%, and the technology-centric Nasdaq increased by 1.26%.
Shares of the drugstore chain and pharmacy benefits manager witnessed a gain of 11.72% over the previous month, beating the performance of the Retail-Wholesale sector with its gain of 6.75% and the S&P 500's gain of 3.01%.
The investment community will be closely monitoring the performance of CVS Health in its forthcoming earnings report. The company is predicted to post an EPS of $1.98, indicating a 0.5% decline compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $90.02 billion, indicating a 7.37% growth compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $8.59 per share and revenue of $354.22 billion, indicating changes of -1.15% and +9.85%, respectively, compared to the previous year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for CVS Health. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. CVS Health presently features a Zacks Rank of #3 (Hold).
In terms of valuation, CVS Health is presently being traded at a Forward P/E ratio of 8.99. Its industry sports an average Forward P/E of 7.61, so one might conclude that CVS Health is trading at a premium comparatively.
One should further note that CVS currently holds a PEG ratio of 2.13. 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. The Retail - Pharmacies and Drug Stores industry currently had an average PEG ratio of 1.83 as of yesterday's close.
The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 187, putting it in the bottom 26% of all 250+ industries.
The Zacks Industry Rank is ordered 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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CVS Health (CVS) Surpasses Market Returns: Some Facts Worth Knowing
In the latest trading session, CVS Health (CVS - Free Report) closed at $78.62, marking a +1.79% move from the previous day. This change outpaced the S&P 500's 1.03% gain on the day. On the other hand, the Dow registered a gain of 0.87%, and the technology-centric Nasdaq increased by 1.26%.
Shares of the drugstore chain and pharmacy benefits manager witnessed a gain of 11.72% over the previous month, beating the performance of the Retail-Wholesale sector with its gain of 6.75% and the S&P 500's gain of 3.01%.
The investment community will be closely monitoring the performance of CVS Health in its forthcoming earnings report. The company is predicted to post an EPS of $1.98, indicating a 0.5% decline compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $90.02 billion, indicating a 7.37% growth compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $8.59 per share and revenue of $354.22 billion, indicating changes of -1.15% and +9.85%, respectively, compared to the previous year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for CVS Health. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. CVS Health presently features a Zacks Rank of #3 (Hold).
In terms of valuation, CVS Health is presently being traded at a Forward P/E ratio of 8.99. Its industry sports an average Forward P/E of 7.61, so one might conclude that CVS Health is trading at a premium comparatively.
One should further note that CVS currently holds a PEG ratio of 2.13. 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. The Retail - Pharmacies and Drug Stores industry currently had an average PEG ratio of 1.83 as of yesterday's close.
The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 187, putting it in the bottom 26% of all 250+ industries.
The Zacks Industry Rank is ordered 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.
You can find more information on all of these metrics, and much more, on Zacks.com.