CVS Health (CVS) closed at $81.07 in the latest trading session, marking a -1.15% move from the prior day. This move lagged the S&P 500's daily gain of 0.58%. At the same time, the Dow added 0.31%, and the tech-heavy Nasdaq gained 0.89%.
The drugstore chain and pharmacy benefits manager's stock has climbed by 7.37% in the past month, exceeding the Medical sector's gain of 3.7% and the S&P 500's gain of 0.16%.
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. At the same time, our most recent consensus estimate is projecting a revenue of $98.29 billion, reflecting a 3% rise from the equivalent quarter last 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's also important for investors to be aware of any recent modifications to analyst estimates for CVS Health. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. The Zacks Consensus EPS estimate has moved 0.03% higher within the past month. 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 12.89. This signifies a discount in comparison to the average Forward P/E of 17.11 for its industry.
It's also important to note that CVS currently trades at a PEG ratio of 0.9. 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. CVS's industry 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 95, positioning it in the top 39% of all 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 follow all of these stock-moving metrics, and many more, on Zacks.com.
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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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