In the latest trading session, CVS Health (CVS - Free Report) closed at $75.07, marking a -0.6% move from the previous day. This change lagged the S&P 500's daily gain of 0.3%. At the same time, the Dow 0%, and the tech-heavy Nasdaq gained 0.92%.
Prior to today's trading, shares of the drugstore chain and pharmacy benefits manager had gained 4.24% over the past month. This has outpaced the Retail-Wholesale sector's loss of 5% and the S&P 500's loss of 4.37% in that time.
CVS will be looking to display strength as it nears its next earnings release, which is expected to be February 14, 2019. In that report, analysts expect CVS to post earnings of $2.13 per share. This would mark year-over-year growth of 10.94%. Meanwhile, our latest consensus estimate is calling for revenue of $49.77 billion, up 2.86% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.03 per share and revenue of $189.37 billion, which would represent changes of +19.15% and +2.49%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for CVS. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.33% lower within the past month. CVS currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that CVS has a Forward P/E ratio of 10.75 right now. This represents a discount compared to its industry's average Forward P/E of 12.19.
Also, we should mention that CVS has a PEG ratio of 1.01. 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. CVS's industry had an average PEG ratio of 1.09 as of yesterday's close.
The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 10, putting it in the top 4% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow CVS in the coming trading sessions, be sure to utilize Zacks.com.