CVS Health (CVS) closed at $82.68 in the latest trading session, marking a +1.46% move from the prior day. This change outpaced the S&P 500's 0.55% gain on the day. Elsewhere, the Dow saw an upswing of 0.63%, while the tech-heavy Nasdaq appreciated by 0.91%.
Prior to today's trading, shares of the drugstore chain and pharmacy benefits manager had gained 3% outpaced the Medical sector's gain of 0.19% 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 February 10, 2026. The company is predicted to post an EPS of $0.99, indicating a 16.81% decline compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $103.03 billion, reflecting a 5.44% rise from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $6.65 per share and a revenue of $399.4 billion, signifying shifts of +22.69% and 0%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for CVS Health. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. As of now, CVS Health holds a Zacks Rank of #3 (Hold).
In the context of valuation, CVS Health is at present trading with a Forward P/E ratio of 11.4. Its industry sports an average Forward P/E of 15.98, so one might conclude that CVS Health is trading at a discount comparatively.
Meanwhile, CVS's PEG ratio is currently 0.75. 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 1.9 as of yesterday's close.
The Medical Services industry is part of the Medical sector. This group has a Zacks Industry Rank of 191, putting it in the bottom 23% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within 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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