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Here's Why CVS Health (CVS) Fell More Than Broader Market
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In the latest market close, CVS Health (CVS - Free Report) reached $80.51, with a -0.46% movement compared to the previous day. The stock trailed the S&P 500, which registered a daily loss of 0.34%. Elsewhere, the Dow saw an upswing of 0.03%, while the tech-heavy Nasdaq depreciated by 0.56%.
Shares of the drugstore chain and pharmacy benefits manager have appreciated by 10.04% over the course of the past month, outperforming the Retail-Wholesale sector's gain of 3.02% and the S&P 500's gain of 2.56%.
The investment community will be paying close attention to the earnings performance of CVS Health in its upcoming release. It is anticipated that the company will report an EPS of $1.98, marking a 0.5% fall compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $90.07 billion, reflecting a 7.42% rise from the equivalent quarter last year.
Investors should also note any recent changes to analyst estimates for CVS Health. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.23% lower. CVS Health presently features a Zacks Rank of #3 (Hold).
Investors should also note CVS Health's current valuation metrics, including its Forward P/E ratio of 9.47. This denotes a premium relative to the industry's average Forward P/E of 7.66.
Also, we should mention that CVS has a PEG ratio of 2.24. 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 1.89 as of yesterday's close.
The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 186, finds itself in the bottom 27% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Here's Why CVS Health (CVS) Fell More Than Broader Market
In the latest market close, CVS Health (CVS - Free Report) reached $80.51, with a -0.46% movement compared to the previous day. The stock trailed the S&P 500, which registered a daily loss of 0.34%. Elsewhere, the Dow saw an upswing of 0.03%, while the tech-heavy Nasdaq depreciated by 0.56%.
Shares of the drugstore chain and pharmacy benefits manager have appreciated by 10.04% over the course of the past month, outperforming the Retail-Wholesale sector's gain of 3.02% and the S&P 500's gain of 2.56%.
The investment community will be paying close attention to the earnings performance of CVS Health in its upcoming release. It is anticipated that the company will report an EPS of $1.98, marking a 0.5% fall compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $90.07 billion, reflecting a 7.42% rise from the equivalent quarter last year.
Investors should also note any recent changes to analyst estimates for CVS Health. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.23% lower. CVS Health presently features a Zacks Rank of #3 (Hold).
Investors should also note CVS Health's current valuation metrics, including its Forward P/E ratio of 9.47. This denotes a premium relative to the industry's average Forward P/E of 7.66.
Also, we should mention that CVS has a PEG ratio of 2.24. 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 1.89 as of yesterday's close.
The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 186, finds itself in the bottom 27% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.