In the latest trading session, CVS Health (CVS - Free Report) closed at $54.83, marking a -0.87% move from the previous day. This move lagged the S&P 500's daily gain of 0.12%. At the same time, the Dow lost 0.08%, and the tech-heavy Nasdaq gained 0.54%.
Prior to today's trading, shares of the drugstore chain and pharmacy benefits manager had gained 0.51% over the past month. This has lagged the Retail-Wholesale sector's gain of 6.02% and the S&P 500's gain of 3.68% 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 $1.69, unchanged from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $62.63 billion, up 34.08% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.86 per share and revenue of $252.56 billion, which would represent changes of -3.11% and +30.12%, respectively, from the prior year.
Any recent changes to analyst estimates for CVS should also be noted by investors. 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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.08% higher. CVS is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, CVS currently has a Forward P/E ratio of 8.06. This valuation marks a discount compared to its industry's average Forward P/E of 9.26.
Also, we should mention that CVS has a PEG ratio of 1.11. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Retail - Pharmacies and Drug Stores industry currently had an average PEG ratio of 1.22 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 225, which puts it in the bottom 13% 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.
To follow CVS in the coming trading sessions, be sure to utilize Zacks.com.