CVS Health (CVS) closed the most recent trading day at $61.96, moving -2.12% from the previous trading session. This change lagged the S&P 500's 0.01% loss on the day. Elsewhere, the Dow lost 0.32%, while the tech-heavy Nasdaq added 0.05%.
The drugstore chain and pharmacy benefits manager's stock has dropped by 5.3% in the past month, falling short of the Medical sector's loss of 1.59% and the S&P 500's gain of 5.37%.
Investors will be eagerly watching for the performance of CVS Health in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on July 31, 2025. It is anticipated that the company will report an EPS of $1.47, marking a 19.67% fall compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $93.72 billion, up 2.73% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $6.12 per share and revenue of $385.5 billion, indicating changes of +12.92% and +3.4%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments to analyst estimates for CVS Health. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.32% higher. CVS Health presently features a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that CVS Health has a Forward P/E ratio of 10.35 right now. This indicates a discount in contrast to its industry's Forward P/E of 15.4.
Meanwhile, CVS's PEG ratio is currently 0.91. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Medical Services was holding an average PEG ratio of 1.52 at yesterday's closing price.
The Medical Services industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 90, placing it within the top 37% of over 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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CVS Health Corporation (CVS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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