CVS Health (CVS) closed at $75.24 in the latest trading session, marking a -2.07% move from the prior day. The stock fell short of the S&P 500, which registered a loss of 0.51% for the day. On the other hand, the Dow registered a gain of 0.53%, and the technology-centric Nasdaq decreased by 1.51%.
The drugstore chain and pharmacy benefits manager's stock has dropped by 4.8% in the past month, falling short of the Medical sector's gain of 3.1% and the S&P 500's gain of 0.93%.
The investment community will be closely monitoring the performance of CVS Health in its forthcoming earnings report. The company is scheduled to release its earnings on February 10, 2026. The company is expected to report EPS of $0.99, down 16.81% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $103.13 billion, showing a 5.54% escalation compared to the year-ago quarter.
CVS's full-year Zacks Consensus Estimates are calling for earnings of $6.65 per share and revenue of $399.83 billion. These results would represent year-over-year changes of +22.69% and 0%, respectively.
Investors should also take note of any recent adjustments to analyst estimates for CVS Health. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.05% higher within the past month. At present, CVS Health boasts a Zacks Rank of #3 (Hold).
With respect to valuation, CVS Health is currently being traded at a Forward P/E ratio of 10.74. This indicates a discount in contrast to its industry's Forward P/E of 16.12.
We can also see that CVS currently has a PEG ratio of 0.7. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Medical Services industry had an average PEG ratio of 1.72.
The Medical Services industry is part of the Medical sector. This group has a Zacks Industry Rank of 157, putting it in the bottom 36% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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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