Back to top

Image: Bigstock

CVS Health (CVS) Ascends While Market Falls: Some Facts to Note

Read MoreHide Full Article

In the latest trading session, CVS Health (CVS - Free Report) closed at $58.64, marking a +0.96% move from the previous day. The stock outperformed the S&P 500, which registered a daily loss of 0.19%. Meanwhile, the Dow experienced a drop of 0.7%, and the technology-dominated Nasdaq saw an increase of 0.04%.

The the stock of drugstore chain and pharmacy benefits manager has risen by 1.08% in the past month, lagging the Retail-Wholesale sector's gain of 6.04% and the S&P 500's gain of 1.95%.

Analysts and investors alike will be keeping a close eye on the performance of CVS Health in its upcoming earnings disclosure. In that report, analysts expect CVS Health to post earnings of $1.70 per share. This would mark a year-over-year decline of 23.08%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $92.83 billion, up 3.42% from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $6.51 per share and a revenue of $369.14 billion, signifying shifts of -25.51% and +3.18%, respectively, from the last year.

Investors should also take note of any recent adjustments to analyst estimates for CVS Health. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate has moved 0.05% lower within the past month. CVS Health is holding a Zacks Rank of #4 (Sell) right now.

With respect to valuation, CVS Health is currently being traded at a Forward P/E ratio of 8.92. This denotes a premium relative to the industry's average Forward P/E of 5.67.

Meanwhile, CVS's PEG ratio is currently 0.82. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Retail - Pharmacies and Drug Stores industry had an average PEG ratio of 0.9 as trading concluded yesterday.

The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 237, placing it within the bottom 7% of over 250 industries.

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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


CVS Health Corporation (CVS) - free report >>

Published in