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CVS Health (CVS) Stock Moves -1.27%: What You Should Know

Zacks Equity Research
·3 mins read

CVS Health (CVS) closed at $57.40 in the latest trading session, marking a -1.27% move from the prior day. This change was narrower than the S&P 500's 2.37% loss on the day. At the same time, the Dow lost 1.92%, and the tech-heavy Nasdaq lost 3.02%.

Coming into today, shares of the drugstore chain and pharmacy benefits manager had lost 8.4% in the past month. In that same time, the Retail-Wholesale sector lost 1.36%, while the S&P 500 lost 2.31%.

Investors will be hoping for strength from CVS as it approaches its next earnings release. In that report, analysts expect CVS to post earnings of $1.31 per share. This would mark a year-over-year decline of 28.8%. Meanwhile, our latest consensus estimate is calling for revenue of $66.34 billion, up 2.37% from the prior-year quarter.

CVS's full-year Zacks Consensus Estimates are calling for earnings of $7.23 per share and revenue of $266.74 billion. These results would represent year-over-year changes of +2.12% and +3.88%, respectively.

It is also important to note the recent changes to analyst estimates for CVS. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.1% lower. CVS currently has a Zacks Rank of #3 (Hold).

Investors should also note CVS's current valuation metrics, including its Forward P/E ratio of 8.04. This valuation marks a discount compared to its industry's average Forward P/E of 11.01.

Also, we should mention that CVS has a PEG ratio of 1.44. 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 1.43 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 212, putting it in the bottom 17% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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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