CVS Health (CVS) closed the most recent trading day at $70.55, moving -1.77% from the previous trading session. This change lagged the S&P 500's 0.09% loss on the day. Meanwhile, the Dow gained 0.04%, and the Nasdaq, a tech-heavy index, added 0.06%.
Prior to today's trading, shares of the drugstore chain and pharmacy benefits manager had lost 3.32% over the past month. This has lagged the Retail-Wholesale sector's loss of 0.6% and the S&P 500's gain of 1.26% 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 February 12, 2020. On that day, CVS is projected to report earnings of $1.68 per share, which would represent a year-over-year decline of 21.5%. Our most recent consensus estimate is calling for quarterly revenue of $64.15 billion, up 17.88% from the year-ago period.
It is also important to note the recent changes to analyst estimates for CVS. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 0.04% higher within the past month. CVS is currently a Zacks Rank #3 (Hold).
Investors should also note CVS's current valuation metrics, including its Forward P/E ratio of 10.05. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 10.05.
Meanwhile, CVS's PEG ratio is currently 1.53. 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 industry currently had an average PEG ratio of 1.35 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 71, putting it in the top 28% 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.
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
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