CVS Health (CVS) Stock Declines While Market Improves: Some Information for Investors
CVS Health (CVS) closed at $74.30 in the latest trading session, marking a -0.05% move from the prior day. This change lagged the S&P 500's 1.03% gain on the day. Meanwhile, the Dow experienced a rise of 0.34%, and the technology-dominated Nasdaq saw an increase of 1.51%.
Coming into today, shares of the drugstore chain and pharmacy benefits manager had lost 2.25% in the past month. In that same time, the Retail-Wholesale sector gained 3.93%, while the S&P 500 gained 3.21%.
Investors will be eagerly watching for the performance of CVS Health in its upcoming earnings disclosure. The company's upcoming EPS is projected at $1.74, signifying a 20.91% drop compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $89.3 billion, reflecting a 4.72% rise from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $8.35 per share and a revenue of $370.21 billion, indicating changes of -4.46% and +3.48%, respectively, from the former year.
Any recent changes to analyst estimates for CVS Health should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 1.89% lower within the past month. CVS Health is currently sporting a Zacks Rank of #3 (Hold).
From a valuation perspective, CVS Health is currently exchanging hands at a Forward P/E ratio of 8.9. This expresses a premium compared to the average Forward P/E of 6.44 of its industry.
Investors should also note that CVS has a PEG ratio of 0.98 right now. 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. By the end of yesterday's trading, the Retail - Pharmacies and Drug Stores industry had an average PEG ratio of 1.14.
The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 236, this industry ranks in the bottom 7% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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CVS Health Corporation (CVS) : Free Stock Analysis Report
