CVS Health (CVS) closed at $67.58 in the latest trading session, marking a +1.15% move from the prior day. This move outpaced the S&P 500's daily gain of 1.11%. Elsewhere, the Dow gained 1.19%, while the tech-heavy Nasdaq added 1.43%.
The stock of drugstore chain and pharmacy benefits manager has risen by 9.83% in the past month, leading the Medical sector's gain of 2.14% and the S&P 500's gain of 3.92%.
Investors will be eagerly watching for the performance of CVS Health in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.45, marking a 20.77% fall compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $93.93 billion, reflecting a 2.96% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $6.11 per share and a revenue of $385.95 billion, demonstrating changes of +12.73% and +3.52%, respectively, from the preceding year.
Any recent changes to analyst estimates for CVS Health should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. CVS Health currently has a Zacks Rank of #2 (Buy).
Looking at valuation, CVS Health is presently trading at a Forward P/E ratio of 10.93. This denotes a discount relative to the industry average Forward P/E of 15.78.
Also, we should mention that CVS has a PEG ratio of 0.96. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CVS's industry had an average PEG ratio of 1.35 as of yesterday's close.
The Medical Services industry is part of the Medical sector. With its current Zacks Industry Rank of 74, this industry ranks in the top 31% of all industries, numbering over 250.
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.
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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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