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CVS Health (CVS) Stock Dips While Market Gains: Key Facts

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In the latest close session, CVS Health (CVS - Free Report) was down 1.98% at $73.50. The stock trailed the S&P 500, which registered a daily gain of 0.47%. Elsewhere, the Dow gained 0.11%, while the tech-heavy Nasdaq added 0.94%.

Shares of the drugstore chain and pharmacy benefits manager witnessed a gain of 9.3% over the previous month, beating the performance of the Medical sector with its gain of 5.49%, and the S&P 500's gain of 2.32%.

The upcoming earnings release of CVS Health will be of great interest to investors. On that day, CVS Health is projected to report earnings of $1.36 per share, which would represent year-over-year growth of 24.77%. Meanwhile, our latest consensus estimate is calling for revenue of $97.96 billion, up 2.65% from the prior-year quarter.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $6.34 per share and a revenue of $391.11 billion, representing changes of +16.97% and +4.91%, respectively, from the prior year.

Investors should also take note of any recent adjustments to analyst estimates for CVS Health. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been a 0.34% rise in the Zacks Consensus EPS estimate. At present, CVS Health boasts a Zacks Rank of #3 (Hold).

From a valuation perspective, CVS Health is currently exchanging hands at a Forward P/E ratio of 11.82. This indicates a discount in contrast to its industry's Forward P/E of 16.7.

We can additionally observe that CVS currently boasts a PEG ratio of 0.83. 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. As of the close of trade yesterday, the Medical Services industry held an average PEG ratio of 1.5.

The Medical Services industry is part of the Medical sector. With its current Zacks Industry Rank of 148, this industry ranks in the bottom 41% of all industries, numbering over 250.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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