CVS Health (CVS) closed at $62.99 in the latest trading session, marking a +0.08% move from the prior day. This move outpaced the S&P 500's daily loss of 0.14%. Elsewhere, the Dow lost 0.11%, while the tech-heavy Nasdaq lost 0.1%.
Coming into today, shares of the drugstore chain and pharmacy benefits manager had lost 1.5% in the past month. In that same time, the Retail-Wholesale sector lost 1.96%, while the S&P 500 lost 0.91%.
Wall Street will be looking for positivity from CVS as it approaches its next earnings report date. This is expected to be November 6, 2019. In that report, analysts expect CVS to post earnings of $1.77 per share. This would mark year-over-year growth of 2.31%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $63.04 billion, up 33.37% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.97 per share and revenue of $252.44 billion, which would represent changes of -1.55% and +30.06%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for CVS. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.05% higher within the past month. CVS is currently sporting a Zacks Rank of #2 (Buy).
Looking at its valuation, CVS is holding a Forward P/E ratio of 9.03. Its industry sports an average Forward P/E of 9.11, so we one might conclude that CVS is trading at a discount comparatively.
Meanwhile, CVS's PEG ratio is currently 1.37. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Retail - Pharmacies and Drug Stores industry currently had an average PEG ratio of 1.37 as of yesterday's close.
The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 101, which puts it in the top 40% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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CVS Health Corporation (CVS) : Free Stock Analysis Report
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