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CVS Health (CVS) Exceeds Market Returns: Some Facts to Consider

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CVS Health (CVS - Free Report) closed the most recent trading day at $76.87, moving +1.96% from the previous trading session. This change outpaced the S&P 500's 0.34% gain on the day. At the same time, the Dow added 0.09%, and the tech-heavy Nasdaq gained 0.42%.

Heading into today, shares of the drugstore chain and pharmacy benefits manager had gained 1.75% over the past month, lagging the Medical sector's gain of 1.97% and the S&P 500's gain of 3.54%.

The upcoming earnings release of CVS Health will be of great interest to investors. The company's earnings report is expected on October 29, 2025. The company is forecasted to report an EPS of $1.36, showcasing a 24.77% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $97.96 billion, indicating a 2.65% upward movement from the same quarter last year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $6.34 per share and a revenue of $391.11 billion, signifying shifts of +16.97% and +4.91%, respectively, from the last year.

Investors might also notice recent changes to analyst estimates for CVS Health. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.34% increase. As of now, CVS Health holds a Zacks Rank of #3 (Hold).

With respect to valuation, CVS Health is currently being traded at a Forward P/E ratio of 11.88. For comparison, its industry has an average Forward P/E of 17.61, which means CVS Health is trading at a discount to the group.

We can also see that CVS currently has a PEG ratio of 0.83. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Medical Services industry currently had an average PEG ratio of 1.72 as of yesterday's close.

The Medical Services industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 138, finds itself in the bottom 45% echelons of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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