CVS Health (CVS) Stock Moves -1.28%: What You Should Know
CVS Health (CVS) closed the most recent trading day at $80.67, moving -1.28% from the previous trading session. This change was narrower than the S&P 500's daily loss of 1.59%.
Prior to today's trading, shares of the drugstore chain and pharmacy benefits manager had lost 0.83% over the past month. This has lagged the Retail-Wholesale sector's gain of 0.09% and the S&P 500's gain of 2.53% in that time.
Investors will be hoping for strength from CVS as it approaches its next earnings release, which is expected to be August 4, 2021. The company is expected to report EPS of $2.07, down 21.59% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $70.08 billion, up 7.25% from the prior-year quarter.
CVS's full-year Zacks Consensus Estimates are calling for earnings of $7.66 per share and revenue of $281.08 billion. These results would represent year-over-year changes of +2.13% and +4.6%, respectively.
Investors should also note any recent changes to analyst estimates for CVS. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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.
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 0.11% higher within the past month. CVS is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, CVS is holding a Forward P/E ratio of 10.67. This valuation marks a premium compared to its industry's average Forward P/E of 10.55.
We can also see that CVS currently has a PEG ratio of 1.59. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Retail - Pharmacies and Drug Stores industry currently had an average PEG ratio of 1.51 as of yesterday's close.
The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 243, which puts it in the bottom 5% 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.
To follow CVS in the coming trading sessions, be sure to utilize Zacks.com.
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