CVS Health (CVS) ended the recent trading session at $76.47, demonstrating a +1.78% change from the preceding day's closing price. The stock exceeded the S&P 500, which registered a loss of 0.55% for the day. Elsewhere, the Dow saw a downswing of 0.19%, while the tech-heavy Nasdaq depreciated by 0.95%.
The stock of drugstore chain and pharmacy benefits manager has risen by 5.5% in the past month, leading the Medical sector's loss of 0.2% and the S&P 500's gain of 3.64%.
Analysts and investors alike will be keeping a close eye on the performance of CVS Health in its upcoming earnings disclosure. On that day, CVS Health is projected to report earnings of $1.36 per share, which would represent year-over-year growth of 24.77%. Our most recent consensus estimate is calling for quarterly revenue of $97.96 billion, up 2.65% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $6.34 per share and a revenue of $391.11 billion, indicating changes of +16.97% and +4.91%, respectively, from the former year.
Any recent changes to analyst estimates for CVS Health should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
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.
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. Over the past month, there's been a 0.34% rise in the Zacks Consensus EPS estimate. CVS Health presently features a Zacks Rank of #3 (Hold).
With respect to valuation, CVS Health is currently being traded at a Forward P/E ratio of 11.84. This signifies a discount in comparison to the average Forward P/E of 17.02 for its industry.
It's also important to note that CVS currently trades at a PEG ratio of 0.83. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Medical Services industry currently had an average PEG ratio of 1.51 as of yesterday's close.
The Medical Services industry is part of the Medical sector. This group has a Zacks Industry Rank of 103, putting it in the top 42% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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 ReportThis article originally published on Zacks Investment Research (zacks.com).
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