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CVS Health (CVS) Laps the Stock Market: Here's Why
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CVS Health (CVS - Free Report) closed at $109.34 in the latest trading session, marking a +2.12% move from the prior day. The stock's change was more than the S&P 500's daily gain of 0.21%. Elsewhere, the Dow saw an upswing of 1.03%, while the tech-heavy Nasdaq depreciated by 0.22%.
Prior to today's trading, shares of the drugstore chain and pharmacy benefits manager had gained 3.37% outpaced the Medical sector's loss of 0.43% and the S&P 500's gain of 1.7%.
The investment community will be closely monitoring the performance of CVS Health in its forthcoming earnings report. The company is scheduled to release its earnings on August 5, 2026. It is anticipated that the company will report an EPS of $1.87, marking a 3.31% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $100.18 billion, indicating a 1.28% increase compared to the same quarter of the previous year.
CVS's full-year Zacks Consensus Estimates are calling for earnings of $7.46 per share and revenue of $409 billion. These results would represent year-over-year changes of +10.52% and +1.72%, respectively.
Investors should also pay attention to any latest changes in analyst estimates for CVS Health. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.28% upward. CVS Health is holding a Zacks Rank of #2 (Buy) right now.
In terms of valuation, CVS Health is presently being traded at a Forward P/E ratio of 14.36. This signifies a discount in comparison to the average Forward P/E of 16.54 for its industry.
We can additionally observe that CVS currently boasts a PEG ratio of 1.05. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Medical Services was holding an average PEG ratio of 1.6 at yesterday's closing price.
The Medical Services industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 84, positioning it in the top 35% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.
View the Zacks #1 Rank List
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CVS Health (CVS) Laps the Stock Market: Here's Why
CVS Health (CVS - Free Report) closed at $109.34 in the latest trading session, marking a +2.12% move from the prior day. The stock's change was more than the S&P 500's daily gain of 0.21%. Elsewhere, the Dow saw an upswing of 1.03%, while the tech-heavy Nasdaq depreciated by 0.22%.
Prior to today's trading, shares of the drugstore chain and pharmacy benefits manager had gained 3.37% outpaced the Medical sector's loss of 0.43% and the S&P 500's gain of 1.7%.
The investment community will be closely monitoring the performance of CVS Health in its forthcoming earnings report. The company is scheduled to release its earnings on August 5, 2026. It is anticipated that the company will report an EPS of $1.87, marking a 3.31% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $100.18 billion, indicating a 1.28% increase compared to the same quarter of the previous year.
CVS's full-year Zacks Consensus Estimates are calling for earnings of $7.46 per share and revenue of $409 billion. These results would represent year-over-year changes of +10.52% and +1.72%, respectively.
Investors should also pay attention to any latest changes in analyst estimates for CVS Health. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.28% upward. CVS Health is holding a Zacks Rank of #2 (Buy) right now.
In terms of valuation, CVS Health is presently being traded at a Forward P/E ratio of 14.36. This signifies a discount in comparison to the average Forward P/E of 16.54 for its industry.
We can additionally observe that CVS currently boasts a PEG ratio of 1.05. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Medical Services was holding an average PEG ratio of 1.6 at yesterday's closing price.
The Medical Services industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 84, positioning it in the top 35% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.