CVS Health (CVS) closed the most recent trading day at $81.36, moving +2.56% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.26%. At the same time, the Dow added 0.6%, and the tech-heavy Nasdaq gained 0.25%.
Shares of the drugstore chain and pharmacy benefits manager have appreciated by 1.86% over the course of the past month, outperforming the Medical sector's gain of 0.92%, and the S&P 500's gain of 1.57%.
The investment community will be paying close attention to the earnings performance of CVS Health in its upcoming release. The company is slated to reveal its earnings on February 11, 2026. 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. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $103.03 billion, up 5.44% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $6.65 per share and revenue of $399.4 billion, which would represent changes of +22.69% and 0%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for CVS Health. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. The Zacks Consensus EPS estimate has moved 0.07% higher within the past month. 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 11.1. This signifies a discount in comparison to the average Forward P/E of 15.53 for its industry.
Also, we should mention that CVS has a PEG ratio of 0.73. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Medical Services industry held an average PEG ratio of 1.92.
The Medical Services industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 197, positioning it in the bottom 20% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
CVS Health Corporation (CVS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
