Yahoo Finance CVS Health (CVS) Increases Despite Market Slip: Here's What You Need to Know
CVS Health (CVS) ended the recent trading session at $61.37, demonstrating a +0.61% swing from the preceding day's closing price. The stock exceeded the S&P 500, which registered a loss of 0.16% for the day. At the same time, the Dow added 0.04%, and the tech-heavy Nasdaq lost 0.18%.
The drugstore chain and pharmacy benefits manager's shares have seen an increase of 9.61% over the last month, surpassing the Retail-Wholesale sector's gain of 1% and the S&P 500's gain of 3.15%.
The upcoming earnings release of CVS Health will be of great interest to investors. The company is predicted to post an EPS of $1.77, indicating a 19.91% decline compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $91.62 billion, reflecting a 3.03% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $7.02 per share and revenue of $368.93 billion. These totals would mark changes of -19.68% and +3.12%, respectively, from last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for CVS Health. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.06% lower. CVS Health is currently sporting a Zacks Rank of #5 (Strong Sell).
Looking at valuation, CVS Health is presently trading at a Forward P/E ratio of 8.69. Its industry sports an average Forward P/E of 7.69, so one might conclude that CVS Health is trading at a premium comparatively.
It is also worth noting that CVS currently has a PEG ratio of 0.58. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CVS's industry had an average PEG ratio of 0.79 as of yesterday's close.
The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 234, this industry ranks in the bottom 8% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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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CVS Health Corporation (CVS) : Free Stock Analysis Report
