In the latest trading session, CVS Health (CVS - Free Report) closed at $52.93, marking a +1.08% move from the previous day. This move outpaced the S&P 500's daily loss of 0.21%. Meanwhile, the Dow lost 0.09%, and the Nasdaq, a tech-heavy index, lost 0.18%.
Heading into today, shares of the drugstore chain and pharmacy benefits manager had lost 20.37% over the past month, lagging the Retail-Wholesale sector's gain of 1.24% and the S&P 500's gain of 1.81% in that time.
CVS will be looking to display strength as it nears its next earnings release. On that day, CVS is projected to report earnings of $1.53 per share, which would represent year-over-year growth of 3.47%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $60.29 billion, up 31.95% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.79 per share and revenue of $250.43 billion. These totals would mark changes of -4.09% and +29.02%, respectively, from last year.
Any recent changes to analyst estimates for CVS should also be noted by investors. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection has moved 8.55% lower. CVS is currently sporting a Zacks Rank of #4 (Sell).
In terms of valuation, CVS is currently trading at a Forward P/E ratio of 7.62. This valuation marks a discount compared to its industry's average Forward P/E of 8.85.
Also, we should mention that CVS has a PEG ratio of 1.01. 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. Retail - Pharmacies and Drug Stores stocks are, on average, holding a PEG ratio of 1.01 based on yesterday's closing prices.
The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 100, putting it in the top 40% 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.