CVS Health (CVS) closed the most recent trading day at $84.74, moving -0.77% from the previous trading session. This move lagged the S&P 500's daily loss of 0.54%.
Coming into today, shares of the drugstore chain and pharmacy benefits manager had lost 3.62% in the past month. In that same time, the Retail-Wholesale sector gained 1.56%, while the S&P 500 gained 1.91%.
CVS will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.01, down 23.86% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $70.36 billion, up 7.68% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.64 per share and revenue of $281.64 billion, which would represent changes of +1.87% and +4.81%, respectively, from the prior year.
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 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. The Zacks Consensus EPS estimate has moved 0.1% higher within the past month. CVS is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, CVS currently has a Forward P/E ratio of 11.17. This valuation marks a premium compared to its industry's average Forward P/E of 11.14.
It is also worth noting that CVS currently has a PEG ratio of 1.67. 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 1.65 as of yesterday's close.
The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 89, which puts it in the top 36% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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