Yahoo Finance CVS Health (CVS) Outpaces Stock Market Gains: What You Should Know
CVS Health (CVS) closed at $74.70 in the latest trading session, marking a +0.82% move from the prior day. This move outpaced the S&P 500's daily gain of 0.57%. Elsewhere, the Dow gained 0.43%, while the tech-heavy Nasdaq added 0.33%.
Prior to today's trading, shares of the drugstore chain and pharmacy benefits manager had lost 10.16% over the past month. This has lagged the Retail-Wholesale sector's gain of 0.86% and the S&P 500's gain of 1.72% in that time.
Wall Street will be looking for positivity from CVS Health as it approaches its next earnings report date. In that report, analysts expect CVS Health to post earnings of $2.12 per share. This would mark a year-over-year decline of 4.5%. Our most recent consensus estimate is calling for quarterly revenue of $81.41 billion, up 5.97% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.84 per share and revenue of $333.43 billion. These totals would mark changes of +1.73% and +3.4%, respectively, from last year.
Any recent changes to analyst estimates for CVS Health should also be noted by investors. Recent revisions tend to reflect the latest 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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. CVS Health currently has a Zacks Rank of #3 (Hold).
Digging into valuation, CVS Health currently has a Forward P/E ratio of 8.38. Its industry sports an average Forward P/E of 7.6, so we one might conclude that CVS Health is trading at a premium comparatively.
We can also see that CVS currently has a PEG ratio of 1.15. 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 1.34 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 17, which puts it in the top 7% 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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CVS Health Corporation (CVS) : Free Stock Analysis Report
