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

CVS Health (CVS) closed the most recent trading day at $86.18, moving -1.5% from the previous trading session. This move lagged the S&P 500's daily gain of 1.47%. At the same time, the Dow lost 0.11%, and the tech-heavy Nasdaq gained 7.94%.

Heading into today, shares of the drugstore chain and pharmacy benefits manager had lost 4.88% over the past month, lagging the Retail-Wholesale sector's gain of 13.42% and the S&P 500's gain of 7.41% in that time.

Wall Street will be looking for positivity from CVS Health as it approaches its next earnings report date. This is expected to be February 8, 2023. On that day, CVS Health is projected to report earnings of $1.92 per share, which would represent a year-over-year decline of 3.03%. Our most recent consensus estimate is calling for quarterly revenue of $74.97 billion, down 2.14% from the year-ago period.

It is also important to note the recent changes to analyst estimates for CVS Health. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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 remained stagnant within the past month. CVS Health is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that CVS Health has a Forward P/E ratio of 9.9 right now. For comparison, its industry has an average Forward P/E of 8.26, which means CVS Health is trading at a premium to the group.

It is also worth noting that CVS currently has a PEG ratio of 1.35. 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 1.5 based on yesterday's closing prices.

The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 99, which puts it in the top 40% 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 to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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