In the latest trading session, CVS Health (CVS) closed at $79.79, marking a -1.13% move from the previous day. The stock fell short of the S&P 500, which registered a loss of 0.34% for the day. At the same time, the Dow lost 0.94%, and the tech-heavy Nasdaq gained 0.16%.
Prior to today's trading, shares of the drugstore chain and pharmacy benefits manager had gained 3.14% outpaced the Medical sector's gain of 0.82% and the S&P 500's gain of 1.19%.
Market participants will be closely following the financial results of CVS Health in its upcoming release. The company is forecasted to report an EPS of $0.99, showcasing a 16.81% downward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $103.03 billion, indicating a 5.44% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $6.65 per share and a revenue of $399.4 billion, demonstrating changes of +22.69% and 0%, respectively, from the preceding year.
Any recent changes to analyst estimates for CVS Health should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
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 past month, the Zacks Consensus EPS estimate has shifted 0.07% downward. CVS Health presently features a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that CVS Health has a Forward P/E ratio of 11.29 right now. This indicates a discount in contrast to its industry's Forward P/E of 15.79.
Also, we should mention that CVS has a PEG ratio of 0.74. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Medical Services industry stood at 1.91 at the close of the market yesterday.
The Medical Services industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 184, placing it within the bottom 25% of over 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding 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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