In the latest trading session, CVS Health (CVS - Free Report) closed at $53.64, marking a -1.31% move from the previous day. This change lagged the S&P 500's 1.15% gain on the day. At the same time, the Dow added 2.39%, and the tech-heavy Nasdaq lost 0.45%.
Heading into today, shares of the drugstore chain and pharmacy benefits manager had lost 15.51% over the past month, lagging the Retail-Wholesale sector's loss of 15.08% and outpacing the S&P 500's loss of 24.07% in that time.
Wall Street will be looking for positivity from CVS as it approaches its next earnings report date. On that day, CVS is projected to report earnings of $1.61 per share, which would represent a year-over-year decline of 0.62%. Meanwhile, our latest consensus estimate is calling for revenue of $63.29 billion, up 2.67% from the prior-year quarter.
CVS's full-year Zacks Consensus Estimates are calling for earnings of $7.14 per share and revenue of $259.37 billion. These results would represent year-over-year changes of +0.85% and +1.01%, respectively.
It is also important to note the recent changes to analyst estimates for CVS. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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 0.07% higher. CVS currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that CVS has a Forward P/E ratio of 7.61 right now. Its industry sports an average Forward P/E of 8.59, so we one might conclude that CVS is trading at a discount comparatively.
Meanwhile, CVS's PEG ratio is currently 1.18. 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. CVS's industry had an average PEG ratio of 1.18 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 173, putting it in the bottom 33% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.