CVS Health (CVS - Free Report) closed the most recent trading day at $74.29, moving +0.8% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.3%. Elsewhere, the Dow gained 0.27%, while the tech-heavy Nasdaq added 0.3%.
Prior to today's trading, shares of the drugstore chain and pharmacy benefits manager had lost 2.45% over the past month. This has lagged the Retail-Wholesale sector's gain of 2.32% and the S&P 500's gain of 2.69% in that time.
Wall Street will be looking for positivity from CVS as it approaches its next earnings report date. This is expected to be February 12, 2020. The company is expected to report EPS of $1.77, down 17.29% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $64.20 billion, up 17.96% from the prior-year quarter.
Any recent changes to analyst estimates for CVS should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. 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, 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. The Zacks Consensus EPS estimate has moved 0.04% higher within the past month. CVS is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, CVS is currently trading at a Forward P/E ratio of 10.49. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 10.49.
Also, we should mention that CVS has a PEG ratio of 1.59. 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. Retail - Pharmacies and Drug Stores stocks are, on average, holding a PEG ratio of 1.47 based on yesterday's closing prices.
The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 32, which puts it in the top 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.