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CVS Health (CVS) Stock Moves -1.62%: What You Should Know

Zacks Equity Research

In the latest trading session, CVS Health (CVS) closed at $60.56, marking a -1.62% move from the previous day. This move was narrower than the S&P 500's daily loss of 2.2%. Meanwhile, the Dow lost 1.86%, and the Nasdaq, a tech-heavy index, lost 1.44%.

Heading into today, shares of the drugstore chain and pharmacy benefits manager had gained 6.14% over the past month, lagging the Retail-Wholesale sector's gain of 11.19% and outpacing the S&P 500's gain of 5.45% in that time.

Wall Street will be looking for positivity from CVS as it approaches its next earnings report date. This is expected to be May 6, 2020. In that report, analysts expect CVS to post earnings of $1.62 per share. This would mark no growth from the year-ago period. Our most recent consensus estimate is calling for quarterly revenue of $63.07 billion, up 2.31% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $7.10 per share and revenue of $258.99 billion, which would represent changes of +0.28% and +0.86%, respectively, from the prior year.

Any recent changes to analyst estimates for CVS should also be noted by investors. 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. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.48% lower within the past month. CVS is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that CVS has a Forward P/E ratio of 8.67 right now. This valuation marks a discount compared to its industry's average Forward P/E of 10.01.

Also, we should mention that CVS has a PEG ratio of 1.37. 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 1.32 at yesterday's closing price.

The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 54, which puts it in the top 22% 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.

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Zacks Investment Research