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CVS Health (CVS) Outperforms Broader Market: What You Need to Know
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The latest trading session saw CVS Health (CVS - Free Report) ending at $74.60, denoting a +1.06% adjustment from its last day's close. The stock exceeded the S&P 500, which registered a gain of 0.11% for the day. Meanwhile, the Dow experienced a drop of 0.11%, and the technology-dominated Nasdaq saw an increase of 0.23%.
Shares of the drugstore chain and pharmacy benefits manager witnessed a gain of 0.15% over the previous month, beating the performance of the Retail-Wholesale sector with its gain of 0.04% and underperforming the S&P 500's gain of 1.5%.
Market participants will be closely following the financial results of CVS Health in its upcoming release. The company plans to announce its earnings on May 1, 2024. The company is forecasted to report an EPS of $1.69, showcasing a 23.18% downward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $89.28 billion, indicating a 4.7% growth compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $8.33 per share and revenue of $370.63 billion, indicating changes of -4.69% and +3.59%, 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. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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 past month, there's been a 0.01% fall in the Zacks Consensus EPS estimate. CVS Health is currently a Zacks Rank #3 (Hold).
Digging into valuation, CVS Health currently has a Forward P/E ratio of 8.86. This denotes a premium relative to the industry's average Forward P/E of 5.83.
We can also see that CVS currently has a PEG ratio of 0.98. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Retail - Pharmacies and Drug Stores industry had an average PEG ratio of 1.08 as trading concluded yesterday.
The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 234, this industry ranks in the bottom 8% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow CVS in the coming trading sessions, be sure to utilize Zacks.com.
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CVS Health (CVS) Outperforms Broader Market: What You Need to Know
The latest trading session saw CVS Health (CVS - Free Report) ending at $74.60, denoting a +1.06% adjustment from its last day's close. The stock exceeded the S&P 500, which registered a gain of 0.11% for the day. Meanwhile, the Dow experienced a drop of 0.11%, and the technology-dominated Nasdaq saw an increase of 0.23%.
Shares of the drugstore chain and pharmacy benefits manager witnessed a gain of 0.15% over the previous month, beating the performance of the Retail-Wholesale sector with its gain of 0.04% and underperforming the S&P 500's gain of 1.5%.
Market participants will be closely following the financial results of CVS Health in its upcoming release. The company plans to announce its earnings on May 1, 2024. The company is forecasted to report an EPS of $1.69, showcasing a 23.18% downward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $89.28 billion, indicating a 4.7% growth compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $8.33 per share and revenue of $370.63 billion, indicating changes of -4.69% and +3.59%, 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. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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 past month, there's been a 0.01% fall in the Zacks Consensus EPS estimate. CVS Health is currently a Zacks Rank #3 (Hold).
Digging into valuation, CVS Health currently has a Forward P/E ratio of 8.86. This denotes a premium relative to the industry's average Forward P/E of 5.83.
We can also see that CVS currently has a PEG ratio of 0.98. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Retail - Pharmacies and Drug Stores industry had an average PEG ratio of 1.08 as trading concluded yesterday.
The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 234, this industry ranks in the bottom 8% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow CVS in the coming trading sessions, be sure to utilize Zacks.com.