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CVS Health (CVS) Suffers a Larger Drop Than the General Market: Key Insights
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CVS Health (CVS - Free Report) closed the most recent trading day at $94.43, moving -1.17% from the previous trading session. This move lagged the S&P 500's daily loss of 0.45%. Elsewhere, the Dow saw a downswing of 0.63%, while the tech-heavy Nasdaq depreciated by 0.78%.
Shares of the drugstore chain and pharmacy benefits manager witnessed a gain of 1.64% over the previous month, beating the performance of the Medical sector with its gain of 0.57%, and the S&P 500's loss of 1.99%.
The investment community will be paying close attention to the earnings performance of CVS Health in its upcoming release. The company's earnings per share (EPS) are projected to be $1.6, reflecting no change from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $105.04 billion, showing a 2.11% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $8.02 per share and a revenue of $418.17 billion, demonstrating changes of +18.81% and +4.01%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for CVS Health. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. The Zacks Consensus EPS estimate has moved 0% lower within the past month. CVS Health is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that CVS Health has a Forward P/E ratio of 11.91 right now. This signifies a discount in comparison to the average Forward P/E of 17.02 for its industry.
Also, we should mention that CVS has a PEG ratio of 0.93. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Medical Services industry held an average PEG ratio of 1.45.
The Medical Services industry is part of the Medical sector. This group has a Zacks Industry Rank of 94, putting it in the top 39% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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 follow all of these stock-moving metrics, and many more, on Zacks.com.
View the Zacks #1 Rank List
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CVS Health (CVS) Suffers a Larger Drop Than the General Market: Key Insights
CVS Health (CVS - Free Report) closed the most recent trading day at $94.43, moving -1.17% from the previous trading session. This move lagged the S&P 500's daily loss of 0.45%. Elsewhere, the Dow saw a downswing of 0.63%, while the tech-heavy Nasdaq depreciated by 0.78%.
Shares of the drugstore chain and pharmacy benefits manager witnessed a gain of 1.64% over the previous month, beating the performance of the Medical sector with its gain of 0.57%, and the S&P 500's loss of 1.99%.
The investment community will be paying close attention to the earnings performance of CVS Health in its upcoming release. The company's earnings per share (EPS) are projected to be $1.6, reflecting no change from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $105.04 billion, showing a 2.11% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $8.02 per share and a revenue of $418.17 billion, demonstrating changes of +18.81% and +4.01%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for CVS Health. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. The Zacks Consensus EPS estimate has moved 0% lower within the past month. CVS Health is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that CVS Health has a Forward P/E ratio of 11.91 right now. This signifies a discount in comparison to the average Forward P/E of 17.02 for its industry.
Also, we should mention that CVS has a PEG ratio of 0.93. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Medical Services industry held an average PEG ratio of 1.45.
The Medical Services industry is part of the Medical sector. This group has a Zacks Industry Rank of 94, putting it in the top 39% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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 follow all of these stock-moving metrics, and many more, on Zacks.com.