In the latest trading session, CVS Health (CVS - Free Report) closed at $72.76, marking a +0.9% move from the previous day. This change outpaced the S&P 500's 0.7% gain on the day. At the same time, the Dow added 0.29%, and the tech-heavy Nasdaq gained 1.04%.
Coming into today, shares of the drugstore chain and pharmacy benefits manager had lost 2.9% in the past month. In that same time, the Retail-Wholesale sector gained 4.86%, while the S&P 500 gained 4.38%.
CVS will be looking to display strength as it nears its next earnings release, which is expected to be February 12, 2020. The company is expected to report EPS of $1.68, down 21.5% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $64.20 billion, up 17.96% from the year-ago period.
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. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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 0.09% lower. CVS is currently a Zacks Rank #3 (Hold).
In terms of valuation, CVS is currently trading at a Forward P/E ratio of 10.1. For comparison, its industry has an average Forward P/E of 10.1, which means CVS is trading at a no noticeable deviation to the group.
Investors should also note that CVS has a PEG ratio of 1.53 right now. 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. The Retail - Pharmacies and Drug Stores industry currently had an average PEG ratio of 1.33 as of yesterday's close.
The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 81, putting it in the top 32% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.