CVS Health (CVS - Free Report) closed at $68.53 in the latest trading session, marking a -0.12% move from the prior day. This change lagged the S&P 500's daily gain of 0.97%. Meanwhile, the Dow gained 1.09%, and the Nasdaq, a tech-heavy index, added 1.08%.
Coming into today, shares of the drugstore chain and pharmacy benefits manager had lost 6.45% in the past month. In that same time, the Retail-Wholesale sector lost 1.47%, while the S&P 500 lost 3.04%.
Investors will be hoping for strength from CVS as it approaches its next earnings release, which is expected to be February 14, 2019. In that report, analysts expect CVS to post earnings of $2.14 per share. This would mark year-over-year growth of 11.46%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $49.20 billion, up 1.69% from the year-ago period.
Investors might also notice recent changes to analyst estimates for CVS. 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 company's business outlook.
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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 4.36% higher within the past month. CVS is holding a Zacks Rank of #2 (Buy) right now.
Digging into valuation, CVS currently has a Forward P/E ratio of 9.02. This valuation marks a discount compared to its industry's average Forward P/E of 10.73.
We can also see that CVS currently has a PEG ratio of 0.82. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Retail - Pharmacies and Drug Stores industry currently had an average PEG ratio of 1.04 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 72, which puts it in the top 29% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.