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CVS Health (CVS) Stock Sinks As Market Gains: What You Should Know

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CVS Health (CVS) closed the most recent trading day at $82.87, moving -0.48% from the previous trading session. This move lagged the S&P 500's daily gain of 0.24%.

Prior to today's trading, shares of the drugstore chain and pharmacy benefits manager had lost 0.96% over the past month. This has lagged the Retail-Wholesale sector's gain of 0.22% and the S&P 500's gain of 4.09% 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. In that report, analysts expect CVS to post earnings of $2.07 per share. This would mark a year-over-year decline of 21.59%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $70.08 billion, up 7.25% from the year-ago period.

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 might also notice recent changes to analyst estimates for CVS. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection has moved 0.16% higher. CVS is currently a Zacks Rank #3 (Hold).

Digging into valuation, CVS currently has a Forward P/E ratio of 10.87. This valuation marks a premium compared to its industry's average Forward P/E of 10.67.

It is also worth noting that CVS currently has a PEG ratio of 1.62. 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. Retail - Pharmacies and Drug Stores stocks are, on average, holding a PEG ratio of 1.53 based on yesterday's closing prices.

The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 244, putting it in the bottom 4% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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