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CVS Health (CVS) Stock Drops Despite Market Gains: Important Facts to Note
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CVS Health (CVS - Free Report) ended the recent trading session at $67.18, demonstrating a -0.22% swing from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily gain of 1.02%. Elsewhere, the Dow saw an upswing of 0.4%, while the tech-heavy Nasdaq appreciated by 2.03%.
The drugstore chain and pharmacy benefits manager's shares have seen a decrease of 15.58% over the last month, not keeping up with the Retail-Wholesale sector's loss of 3.3% and the S&P 500's loss of 3.15%.
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 expected to report EPS of $1.69, down 23.18% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $89.22 billion, up 4.63% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $8.31 per share and revenue of $370.56 billion, which would represent changes of -4.92% and +3.57%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for CVS Health. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Within the past 30 days, our consensus EPS projection has moved 0.23% lower. Right now, CVS Health possesses a Zacks Rank of #4 (Sell).
In terms of valuation, CVS Health is presently being traded at a Forward P/E ratio of 8.1. This represents a premium compared to its industry's average Forward P/E of 5.45.
One should further note that CVS currently holds a PEG ratio of 0.89. 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 0.99 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 237, finds itself in the bottom 6% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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CVS Health (CVS) Stock Drops Despite Market Gains: Important Facts to Note
CVS Health (CVS - Free Report) ended the recent trading session at $67.18, demonstrating a -0.22% swing from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily gain of 1.02%. Elsewhere, the Dow saw an upswing of 0.4%, while the tech-heavy Nasdaq appreciated by 2.03%.
The drugstore chain and pharmacy benefits manager's shares have seen a decrease of 15.58% over the last month, not keeping up with the Retail-Wholesale sector's loss of 3.3% and the S&P 500's loss of 3.15%.
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 expected to report EPS of $1.69, down 23.18% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $89.22 billion, up 4.63% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $8.31 per share and revenue of $370.56 billion, which would represent changes of -4.92% and +3.57%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for CVS Health. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Within the past 30 days, our consensus EPS projection has moved 0.23% lower. Right now, CVS Health possesses a Zacks Rank of #4 (Sell).
In terms of valuation, CVS Health is presently being traded at a Forward P/E ratio of 8.1. This represents a premium compared to its industry's average Forward P/E of 5.45.
One should further note that CVS currently holds a PEG ratio of 0.89. 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 0.99 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 237, finds itself in the bottom 6% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.