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CVS Health (CVS) Increases Despite Market Slip: Here's What You Need to Know

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In the latest trading session, CVS Health (CVS - Free Report) closed at $77.90, marking a +1.51% move from the previous day. The stock's change was more than the S&P 500's daily loss of 2.71%. At the same time, the Dow lost 1.9%, and the tech-heavy Nasdaq lost 3.56%.

Shares of the drugstore chain and pharmacy benefits manager have appreciated by 2.77% over the course of the past month, outperforming the Medical sector's gain of 2.6%, and lagging the S&P 500's gain of 3.5%.

Analysts and investors alike will be keeping a close eye on the performance of CVS Health in its upcoming earnings disclosure. The company's earnings report is set to go public on October 29, 2025. In that report, analysts expect CVS Health to post earnings of $1.36 per share. This would mark year-over-year growth of 24.77%. Simultaneously, our latest consensus estimate expects the revenue to be $98.31 billion, showing a 3.02% escalation compared to the year-ago quarter.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $6.36 per share and a revenue of $391.11 billion, representing changes of +17.34% and +4.91%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for CVS Health. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Currently, CVS Health is carrying a Zacks Rank of #3 (Hold).

Looking at valuation, CVS Health is presently trading at a Forward P/E ratio of 12.06. This signifies a discount in comparison to the average Forward P/E of 17.04 for its industry.

Also, we should mention that CVS has a PEG ratio of 0.85. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Medical Services industry had an average PEG ratio of 1.68.

The Medical Services industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 157, placing it within the bottom 37% of over 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.

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


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