In the latest trading session, CVS Health (CVS) closed at $99.77, marking a -1.55% move from the previous day. This move was narrower than the S&P 500's daily loss of 1.71%. At the same time, the Dow lost 1.7%, and the tech-heavy Nasdaq lost 0.18%.
Heading into today, shares of the drugstore chain and pharmacy benefits manager had gained 0.21% over the past month, outpacing the Retail-Wholesale sector's loss of 7.43% and the S&P 500's loss of 8.68% in that time.
Wall Street will be looking for positivity from CVS Health as it approaches its next earnings report date. The company is expected to report EPS of $1.99, up 1.02% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $76.53 billion, up 3.7% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.54 per share and revenue of $311.69 billion. These totals would mark changes of +1.67% and +6.7%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for CVS Health. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.13% lower. CVS Health is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note CVS Health's current valuation metrics, including its Forward P/E ratio of 11.87. This valuation marks a premium compared to its industry's average Forward P/E of 7.34.
Also, we should mention that CVS has a PEG ratio of 1.54. 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 was holding an average PEG ratio of 1.51 at yesterday's closing price.
The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 95, putting it in the top 38% 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.
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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