CVS Health (CVS) Stock Moves -0.05%: What You Should Know

CVS Health (CVS) closed the most recent trading day at $62.62, moving -0.05% from the previous trading session. This change was narrower than the S&P 500's 0.94% loss on the day. At the same time, the Dow added 0.04%, and the tech-heavy Nasdaq lost 2.13%.

Prior to today's trading, shares of the drugstore chain and pharmacy benefits manager had lost 0.81% over the past month. This has lagged the Retail-Wholesale sector's gain of 9.89% and the S&P 500's gain of 0.02% in that time.

Investors will be hoping for strength from CVS as it approaches its next earnings release, which is expected to be August 5, 2020. On that day, CVS is projected to report earnings of $1.85 per share, which would represent a year-over-year decline of 2.12%. Our most recent consensus estimate is calling for quarterly revenue of $64.34 billion, up 1.44% from the year-ago period.

CVS's full-year Zacks Consensus Estimates are calling for earnings of $7.09 per share and revenue of $264.91 billion. These results would represent year-over-year changes of +0.14% and +3.17%, respectively.

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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Over the past month, the Zacks Consensus EPS estimate has moved 0.25% higher. CVS is currently a Zacks Rank #3 (Hold).

Investors should also note CVS's current valuation metrics, including its Forward P/E ratio of 8.84. Its industry sports an average Forward P/E of 12.43, so we one might conclude that CVS is trading at a discount comparatively.

It is also worth noting that CVS currently has a PEG ratio of 1.4. 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. Retail - Pharmacies and Drug Stores stocks are, on average, holding a PEG ratio of 1.95 based on yesterday's closing prices.

The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 58, putting it in the top 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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