Yahoo Finance CVS Health (CVS) Outpaces Stock Market Gains: What You Should Know
CVS Health (CVS) ended the recent trading session at $61.03, demonstrating a +1.73% swing from the preceding day's closing price. This move outpaced the S&P 500's daily gain of 0.23%. At the same time, the Dow lost 0.17%, and the tech-heavy Nasdaq gained 0.34%.
Prior to today's trading, shares of the drugstore chain and pharmacy benefits manager had gained 6.63% over the past month. This has outpaced the Retail-Wholesale sector's gain of 0.79% and the S&P 500's gain of 3.96% in that time.
The upcoming earnings release of CVS Health will be of great interest to investors. It is anticipated that the company will report an EPS of $1.77, marking a 19.91% fall compared to the same quarter of the previous year. 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.
For the full year, the Zacks Consensus Estimates project earnings of $7.02 per share and a revenue of $368.93 billion, demonstrating changes of -19.68% and +3.12%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications 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.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 has moved 0.06% lower within the past month. Right now, CVS Health possesses a Zacks Rank of #5 (Strong Sell).
Digging into valuation, CVS Health currently has a Forward P/E ratio of 8.55. This denotes a premium relative to the industry's average Forward P/E of 7.68.
Investors should also note that CVS has a PEG ratio of 0.57 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 0.77 as of yesterday's close.
The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 231, placing it within the bottom 9% 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.
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CVS Health Corporation (CVS) : Free Stock Analysis Report
