In the latest close session, CVS Health (CVS) was up +1.41% at $82.52. The stock outperformed the S&P 500, which registered a daily gain of 0.53%. At the same time, the Dow added 0.52%, and the tech-heavy Nasdaq gained 0.52%.
The drugstore chain and pharmacy benefits manager's shares have seen an increase of 9.34% over the last month, surpassing the Medical sector's gain of 2.87% and the S&P 500's gain of 0.71%.
The upcoming earnings release of CVS Health will be of great interest to investors. The company's earnings report is expected on October 29, 2025. The company is predicted to post an EPS of $1.36, indicating a 24.77% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $98.29 billion, indicating a 3% growth compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $6.36 per share and a revenue of $392.28 billion, signifying shifts of +17.34% and +5.22%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for CVS Health. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.03% increase. Currently, CVS Health is carrying a Zacks Rank of #2 (Buy).
Looking at valuation, CVS Health is presently trading at a Forward P/E ratio of 12.78. Its industry sports an average Forward P/E of 17.4, so one might conclude that CVS Health is trading at a discount comparatively.
Investors should also note that CVS has a PEG ratio of 0.9 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Medical Services industry currently had an average PEG ratio of 1.72 as of yesterday's close.
The Medical Services industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 94, positioning it in the top 39% of all 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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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