CVS Health (CVS - Free Report) closed at $55.88 in the latest trading session, marking a -1.22% move from the prior day. This change lagged the S&P 500's 0.09% loss on the day. At the same time, the Dow added 0.03%, and the tech-heavy Nasdaq lost 0.16%.
Heading into today, shares of the drugstore chain and pharmacy benefits manager had lost 16.55% over the past month, lagging the Retail-Wholesale sector's gain of 1.64% and the S&P 500's gain of 2.35% in that time.
Wall Street will be looking for positivity from CVS as it approaches its next earnings report date. The company is expected to report EPS of $1.52, up 2.7% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $60.31 billion, up 31.99% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.88 per share and revenue of $250.73 billion, which would represent changes of -2.82% and +29.18%, 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. 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 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 8.24% lower. CVS is holding a Zacks Rank of #4 (Sell) right now.
In terms of valuation, CVS is currently trading at a Forward P/E ratio of 8.23. This represents a discount compared to its industry's average Forward P/E of 9.61.
We can also see that CVS currently has a PEG ratio of 1.09. 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 industry currently has a Zacks Industry Rank of 215, which puts it in the bottom 16% 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.