Yahoo Finance CVS Health (CVS) Gains As Market Dips: What You Should Know
In the latest market close, CVS Health (CVS) reached $59.06, with a +1.2% movement compared to the previous day. This move outpaced the S&P 500's daily loss of 0.41%. Elsewhere, the Dow lost 0.12%, while the tech-heavy Nasdaq lost 0.71%.
Shares of the drugstore chain and pharmacy benefits manager have appreciated by 4.14% over the course of the past month, outperforming the Retail-Wholesale sector's gain of 2.65% and the S&P 500's gain of 3.53%.
The investment community will be paying close attention to the earnings performance of CVS Health in its upcoming release. The company is expected to report EPS of $1.77, down 19.91% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $91.62 billion, indicating a 3.03% increase compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $7.02 per share and revenue of $368.96 billion, indicating changes of -19.68% and +3.12%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for CVS Health. Such recent modifications usually signify the changing landscape of near-term business trends. 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. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. The Zacks Consensus EPS estimate has moved 0.06% lower within the past month. 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 8.32. This represents a premium compared to its industry's average Forward P/E of 7.17.
It is also worth noting that CVS currently has a PEG ratio of 0.56. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Retail - Pharmacies and Drug Stores industry was having an average PEG ratio of 0.66.
The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 241, positioning it in the bottom 5% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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CVS Health Corporation (CVS): Free Stock Analysis Report
