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CVS Health (CVS) Stock Moves -1.94%: What You Should Know

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In the latest trading session, CVS Health (CVS - Free Report) closed at $63.18, marking a -1.94% move from the previous day. This move was narrower than the S&P 500's daily loss of 2.59%. At the same time, the Dow lost 2.72%, and the tech-heavy Nasdaq lost 2.19%.

CVS will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.81, down 4.23% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $64.13 billion, up 1.1% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.09 per share and revenue of $264.93 billion. These totals would mark changes of +0.14% and +3.18%, respectively, from last year.

Any recent changes to analyst estimates for CVS should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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.

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. Over the past month, the Zacks Consensus EPS estimate has moved 0.18% higher. CVS is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that CVS has a Forward P/E ratio of 9.09 right now. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 9.09.

Meanwhile, CVS's PEG ratio is currently 1.44. 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 1.72 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 68, which puts it in the top 27% 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.


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