CVS Health (CVS - Free Report) closed at $62.92 in the latest trading session, marking a -1.22% move from the prior day. This change was narrower than the S&P 500's 2.71% loss on the day. At the same time, the Dow lost 2.91%, and the tech-heavy Nasdaq lost 2.21%.
Coming into today, shares of the drugstore chain and pharmacy benefits manager had lost 15.17% in the past month. In that same time, the Retail-Wholesale sector lost 8.9%, while the S&P 500 lost 8.68%.
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 $2.11 per share. This would mark year-over-year growth of 9.9%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $50.40 billion, up 4.16% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.02 per share and revenue of $189.58 billion. These totals would mark changes of +18.98% and +2.61%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for CVS. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.09% lower within the past month. CVS is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note CVS's current valuation metrics, including its Forward P/E ratio of 9.07. This valuation marks a discount compared to its industry's average Forward P/E of 10.3.
It is also worth noting 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. CVS's industry had an average PEG ratio of 1.05 as of yesterday's close.
The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 93, which puts it in the top 36% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.