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CVS Health (CVS) Stock Falls Amid Market Uptick: What Investors Need to Know
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In the latest trading session, CVS Health (CVS - Free Report) closed at $73.22, marking a -0.89% move from the previous day. The stock's change was less than the S&P 500's daily gain of 1.23%. Elsewhere, the Dow gained 1.06%, while the tech-heavy Nasdaq added 1.7%.
The drugstore chain and pharmacy benefits manager's stock has dropped by 6.03% in the past month, falling short of the Retail-Wholesale sector's loss of 0.02% and the S&P 500's gain of 0.94%.
The investment community will be paying close attention to the earnings performance of CVS Health in its upcoming release. The company is slated to reveal its earnings on February 7, 2024. In that report, analysts expect CVS Health to post earnings of $1.98 per share. This would mark a year-over-year decline of 0.5%. Simultaneously, our latest consensus estimate expects the revenue to be $90.25 billion, showing a 7.63% escalation compared to the year-ago quarter.
Any recent changes to analyst estimates for CVS Health should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.16% higher. Currently, CVS Health is carrying a Zacks Rank of #3 (Hold).
From a valuation perspective, CVS Health is currently exchanging hands at a Forward P/E ratio of 8.66. For comparison, its industry has an average Forward P/E of 6.74, which means CVS Health is trading at a premium to the group.
Also, we should mention that CVS has a PEG ratio of 2.05. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Retail - Pharmacies and Drug Stores industry currently had an average PEG ratio of 1.7 as of yesterday's close.
The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 108, placing it within the top 43% of over 250 industries.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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CVS Health (CVS) Stock Falls Amid Market Uptick: What Investors Need to Know
In the latest trading session, CVS Health (CVS - Free Report) closed at $73.22, marking a -0.89% move from the previous day. The stock's change was less than the S&P 500's daily gain of 1.23%. Elsewhere, the Dow gained 1.06%, while the tech-heavy Nasdaq added 1.7%.
The drugstore chain and pharmacy benefits manager's stock has dropped by 6.03% in the past month, falling short of the Retail-Wholesale sector's loss of 0.02% and the S&P 500's gain of 0.94%.
The investment community will be paying close attention to the earnings performance of CVS Health in its upcoming release. The company is slated to reveal its earnings on February 7, 2024. In that report, analysts expect CVS Health to post earnings of $1.98 per share. This would mark a year-over-year decline of 0.5%. Simultaneously, our latest consensus estimate expects the revenue to be $90.25 billion, showing a 7.63% escalation compared to the year-ago quarter.
Any recent changes to analyst estimates for CVS Health should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.16% higher. Currently, CVS Health is carrying a Zacks Rank of #3 (Hold).
From a valuation perspective, CVS Health is currently exchanging hands at a Forward P/E ratio of 8.66. For comparison, its industry has an average Forward P/E of 6.74, which means CVS Health is trading at a premium to the group.
Also, we should mention that CVS has a PEG ratio of 2.05. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Retail - Pharmacies and Drug Stores industry currently had an average PEG ratio of 1.7 as of yesterday's close.
The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 108, placing it within the top 43% of over 250 industries.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.