Yahoo Finance Why CVS Health (CVS) Dipped More Than Broader Market Today
CVS Health (CVS) closed the latest trading day at $67.33, indicating a -0.65% change from the previous session's end. The stock's performance was behind the S&P 500's daily loss of 0.46%. Meanwhile, the Dow lost 0.98%, and the Nasdaq, a tech-heavy index, lost 0.64%.
Prior to today's trading, shares of the drugstore chain and pharmacy benefits manager had lost 14.68% over the past month. This has lagged the Retail-Wholesale sector's loss of 3.05% and the S&P 500's loss of 3.04% in that time.
The upcoming earnings release of CVS Health will be of great interest to investors. The company's earnings report is expected on May 1, 2024. In that report, analysts expect CVS Health to post earnings of $1.69 per share. This would mark a year-over-year decline of 23.18%. Meanwhile, our latest consensus estimate is calling for revenue of $89.22 billion, up 4.63% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $8.31 per share and a revenue of $370.56 billion, indicating changes of -4.92% and +3.57%, respectively, from the former year.
Investors should also take note of any recent adjustments to analyst estimates for CVS Health. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.23% lower. CVS Health presently features a Zacks Rank of #4 (Sell).
Looking at valuation, CVS Health is presently trading at a Forward P/E ratio of 8.15. This signifies a premium in comparison to the average Forward P/E of 5.52 for its industry.
Investors should also note that CVS has a PEG ratio of 0.9 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 was holding an average PEG ratio of 1 at yesterday's closing price.
The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 245, which puts it in the bottom 3% of all 250+ industries.
The Zacks Industry Rank is ordered 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 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
