CVS Health (CVS) Gains As Market Dips: What You Should Know
CVS Health (CVS) closed at $94.71 in the latest trading session, marking a +0.56% move from the prior day. This move outpaced the S&P 500's daily loss of 1.15%. Elsewhere, the Dow lost 0.52%, while the tech-heavy Nasdaq lost 0.34%.
Coming into today, shares of the drugstore chain and pharmacy benefits manager had gained 1.08% in the past month. In that same time, the Retail-Wholesale sector lost 3.17%, while the S&P 500 lost 5.08%.
Investors will be hoping for strength from CVS Health as it approaches its next earnings release, which is expected to be August 3, 2022. The company is expected to report EPS of $2.15, down 11.16% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $76.57 billion, up 5.45% from the year-ago period.
CVS's full-year Zacks Consensus Estimates are calling for earnings of $8.34 per share and revenue of $308.62 billion. These results would represent year-over-year changes of -0.71% and +5.65%, respectively.
Investors might also notice recent changes to analyst estimates for CVS Health. 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.
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, 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 0.12% higher within the past month. CVS Health is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note CVS Health's current valuation metrics, including its Forward P/E ratio of 11.29. This represents a premium compared to its industry's average Forward P/E of 7.47.
Meanwhile, CVS's PEG ratio is currently 1.49. 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. CVS's industry had an average PEG ratio of 1.49 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 182, putting it in the bottom 28% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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