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CVS Health (CVS) Stock Moves -0.12%: What You Should Know

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CVS Health (CVS - Free Report) ended the recent trading session at $56.78, demonstrating a -0.12% swing from the preceding day's closing price. The stock's change was more than the S&P 500's daily loss of 0.92%. On the other hand, the Dow registered a loss of 0.96%, and the technology-centric Nasdaq decreased by 1.6%.

Coming into today, shares of the drugstore chain and pharmacy benefits manager had lost 2.12% in the past month. In that same time, the Retail-Wholesale sector gained 1.69%, while the S&P 500 gained 2.68%.

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 November 6, 2024. The company's earnings per share (EPS) are projected to be $1.57, reflecting a 28.96% decrease from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $92.87 billion, indicating a 3.46% growth compared to the corresponding quarter of the prior year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $6.41 per share and a revenue of $369.21 billion, representing changes of -26.66% and +3.19%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for CVS Health. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, 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. Within the past 30 days, our consensus EPS projection has moved 1.59% lower. At present, CVS Health boasts a Zacks Rank of #4 (Sell).

In the context of valuation, CVS Health is at present trading with a Forward P/E ratio of 8.87. For comparison, its industry has an average Forward P/E of 6.19, which means CVS Health is trading at a premium to the group.

Also, we should mention that CVS has a PEG ratio of 0.84. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Retail - Pharmacies and Drug Stores stocks are, on average, holding a PEG ratio of 0.84 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 237, putting it in the bottom 6% 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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