CVS Health (CVS) Dips More Than Broader Markets: What You Should Know

CVS Health (CVS) closed the most recent trading day at $103.45, moving -1.01% from the previous trading session. This move lagged the S&P 500's daily loss of 0.97%. Elsewhere, the Dow lost 0.96%, while the tech-heavy Nasdaq added 0.23%.

Coming into today, shares of the drugstore chain and pharmacy benefits manager had gained 3.69% in the past month. In that same time, the Retail-Wholesale sector lost 5.18%, while the S&P 500 lost 0.78%.

Investors will be hoping for strength from CVS Health as it approaches its next earnings release, which is expected to be February 9, 2022. On that day, CVS Health is projected to report earnings of $1.71 per share, which would represent year-over-year growth of 31.54%. Meanwhile, our latest consensus estimate is calling for revenue of $75.2 billion, up 8.11% from the prior-year quarter.

Investors should also note any recent changes to analyst estimates for CVS Health. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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 has moved 0.15% higher within the past month. CVS Health is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note CVS Health's current valuation metrics, including its Forward P/E ratio of 12.69. This represents a premium compared to its industry's average Forward P/E of 10.62.

Investors should also note that CVS has a PEG ratio of 1.63 right now. 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 2 as of yesterday's close.

The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 204, putting it in the bottom 20% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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