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Is CVS Health (CVS) Stock Undervalued Right Now?

Zacks Equity Research

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company to watch right now is CVS Health (CVS). CVS is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 8.69 right now. For comparison, its industry sports an average P/E of 8.96. Over the past 52 weeks, CVS's Forward P/E has been as high as 11.05 and as low as 7.34, with a median of 8.46.

Value investors will likely look at more than just these metrics, but the above data helps show that CVS Health is likely undervalued currently. And when considering the strength of its earnings outlook, CVS sticks out at as one of the market's strongest value stocks.


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