We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
CVS Health (CVS) Declines More Than Market: Some Information for Investors
Read MoreHide Full Article
CVS Health (CVS - Free Report) ended the recent trading session at $68.64, demonstrating a -1.58% swing from the preceding day's closing price. This change lagged the S&P 500's 1.46% loss on the day. Meanwhile, the Dow experienced a drop of 1.24%, and the technology-dominated Nasdaq saw a decrease of 1.63%.
Coming into today, shares of the drugstore chain and pharmacy benefits manager had lost 8.74% in the past month. In that same time, the Retail-Wholesale sector gained 2.17%, while the S&P 500 gained 1.6%.
The investment community will be closely monitoring the performance of CVS Health in its forthcoming earnings report. The company is scheduled to release its earnings on May 1, 2024. In that report, analysts expect CVS Health to post earnings of $1.69 per share. This would mark a year-over-year decline of 23.18%. At the same time, our most recent consensus estimate is projecting a revenue of $89.33 billion, reflecting a 4.75% rise from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $8.33 per share and a revenue of $370.61 billion, indicating changes of -4.69% and +3.59%, respectively, from the former year.
Investors might also notice recent changes to analyst estimates for CVS Health. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. The Zacks Consensus EPS estimate has moved 0.01% lower within the past month. CVS Health is currently a Zacks Rank #4 (Sell).
Looking at valuation, CVS Health is presently trading at a Forward P/E ratio of 8.38. This expresses a premium compared to the average Forward P/E of 5.59 of its industry.
It's also important to note that CVS currently trades at a PEG ratio of 0.92. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Retail - Pharmacies and Drug Stores industry currently had an average PEG ratio of 1.02 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 245, putting it in the bottom 3% of all 250+ industries.
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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
CVS Health (CVS) Declines More Than Market: Some Information for Investors
CVS Health (CVS - Free Report) ended the recent trading session at $68.64, demonstrating a -1.58% swing from the preceding day's closing price. This change lagged the S&P 500's 1.46% loss on the day. Meanwhile, the Dow experienced a drop of 1.24%, and the technology-dominated Nasdaq saw a decrease of 1.63%.
Coming into today, shares of the drugstore chain and pharmacy benefits manager had lost 8.74% in the past month. In that same time, the Retail-Wholesale sector gained 2.17%, while the S&P 500 gained 1.6%.
The investment community will be closely monitoring the performance of CVS Health in its forthcoming earnings report. The company is scheduled to release its earnings on May 1, 2024. In that report, analysts expect CVS Health to post earnings of $1.69 per share. This would mark a year-over-year decline of 23.18%. At the same time, our most recent consensus estimate is projecting a revenue of $89.33 billion, reflecting a 4.75% rise from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $8.33 per share and a revenue of $370.61 billion, indicating changes of -4.69% and +3.59%, respectively, from the former year.
Investors might also notice recent changes to analyst estimates for CVS Health. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. The Zacks Consensus EPS estimate has moved 0.01% lower within the past month. CVS Health is currently a Zacks Rank #4 (Sell).
Looking at valuation, CVS Health is presently trading at a Forward P/E ratio of 8.38. This expresses a premium compared to the average Forward P/E of 5.59 of its industry.
It's also important to note that CVS currently trades at a PEG ratio of 0.92. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Retail - Pharmacies and Drug Stores industry currently had an average PEG ratio of 1.02 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 245, putting it in the bottom 3% of all 250+ industries.
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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.