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CVS Health (CVS) Stock Moves -0.17%: What You Should Know

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CVS Health (CVS - Free Report) closed at $75.08 in the latest trading session, marking a -0.17% move from the prior day. This move was narrower than the S&P 500's daily loss of 0.19%. On the other hand, the Dow registered a gain of 0.1%, and the technology-centric Nasdaq decreased by 0.54%.

The drugstore chain and pharmacy benefits manager's stock has dropped by 1.8% in the past month, falling short of the Retail-Wholesale sector's gain of 2.94% and the S&P 500's gain of 3.18%.

The investment community will be closely monitoring the performance of CVS Health in its forthcoming earnings report. The company is expected to report EPS of $1.72, down 21.82% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $89.3 billion, reflecting a 4.72% rise from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $8.34 per share and revenue of $370.21 billion, which would represent changes of -4.58% and +3.48%, respectively, from the prior year.

It's also important for investors to be aware of any recent modifications to analyst estimates for CVS Health. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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 shifted 0.3% downward. CVS Health currently has a Zacks Rank of #4 (Sell).

In the context of valuation, CVS Health is at present trading with a Forward P/E ratio of 9.01. This valuation marks a premium compared to its industry's average Forward P/E of 6.56.

We can additionally observe that CVS currently boasts a PEG ratio of 0.99. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Retail - Pharmacies and Drug Stores stocks are, on average, holding a PEG ratio of 1.15 based on yesterday's closing prices.

The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 249, putting it in the bottom 2% of all 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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