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CVS Health (CVS) Stock Falls Amid Market Uptick: What Investors Need to Know

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CVS Health (CVS - Free Report) ended the recent trading session at $66.60, demonstrating a -4.28% change from the preceding day's closing price. This change lagged the S&P 500's 0.48% gain on the day. Meanwhile, the Dow experienced a drop of 0.02%, and the technology-dominated Nasdaq saw an increase of 0.94%.

Coming into today, shares of the drugstore chain and pharmacy benefits manager had gained 9.42% in the past month. In that same time, the Medical sector gained 2.8%, while the S&P 500 gained 5.13%.

Market participants will be closely following the financial results of CVS Health in its upcoming release. The company plans to announce its earnings on July 31, 2025. The company is expected to report EPS of $1.46, down 20.22% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $93.91 billion, up 2.93% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $6.12 per share and revenue of $385.57 billion, which would represent changes of +12.92% and +3.42%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for CVS Health. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. The Zacks Consensus EPS estimate has moved 0.28% higher within the past month. Right now, CVS Health possesses a Zacks Rank of #2 (Buy).

In terms of valuation, CVS Health is presently being traded at a Forward P/E ratio of 11.38. For comparison, its industry has an average Forward P/E of 16.21, which means CVS Health is trading at a discount to the group.

We can additionally observe that CVS currently boasts a PEG ratio of 1. 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 Medical Services was holding an average PEG ratio of 1.47 at yesterday's closing price.

The Medical Services industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 53, positioning it in the top 22% 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.


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