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In the latest trading session, CVS Health (CVS) closed at $73.24, marking a +1.96% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.1%. Meanwhile, the Dow gained 0.12%, and the Nasdaq, a tech-heavy index, lost 0.02%.
Wall Street will be looking for positivity from CVS as it approaches its next earnings report date. This is expected to be February 16, 2021. The company is expected to report EPS of $1.24, down 28.32% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $68.67 billion, up 2.66% from the year-ago period.
Investors might also notice recent changes to analyst estimates for CVS. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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 0.17% higher. CVS is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, CVS is holding a Forward P/E ratio of 9.49. Its industry sports an average Forward P/E of 10.89, so we one might conclude that CVS is trading at a discount comparatively.
Meanwhile, CVS's PEG ratio is currently 1.5. 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. The Retail - Pharmacies and Drug Stores was holding an average PEG ratio of 1.64 at yesterday's closing price.
The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 21, putting it in the top 9% 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.