CVS Health (CVS - Free Report) closed at $61.99 in the latest trading session, marking a -0.4% move from the prior day. This move was narrower than the S&P 500's daily loss of 0.45%. At the same time, the Dow lost 0.36%, and the tech-heavy Nasdaq lost 0.33%.
Coming into today, shares of the drugstore chain and pharmacy benefits manager had lost 0.83% in the past month. In that same time, the Retail-Wholesale sector lost 1.25%, while the S&P 500 gained 0.59%.
Investors will be hoping for strength from CVS as it approaches its next earnings release. On that day, CVS is projected to report earnings of $1.77 per share, which would represent year-over-year growth of 2.31%. Our most recent consensus estimate is calling for quarterly revenue of $63.04 billion, up 33.37% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.97 per share and revenue of $252.44 billion. These totals would mark changes of -1.55% and +30.06%, respectively, from last year.
Investors might also notice 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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. Within the past 30 days, our consensus EPS projection has moved 0.05% higher. CVS currently has a Zacks Rank of #2 (Buy).
In terms of valuation, CVS is currently trading at a Forward P/E ratio of 8.93. For comparison, its industry has an average Forward P/E of 8.94, which means CVS is trading at a discount to the group.
Also, we should mention that CVS has a PEG ratio of 1.36. 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 1.34 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 175, putting it in the bottom 32% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.