CVS Health (CVS) closed at $93.45 in the latest trading session, marking a -1.37% move from the prior day. This move lagged the S&P 500's daily gain of 0.58%. Elsewhere, the Dow gained 0.69%, while the tech-heavy Nasdaq added 1.05%.
The stock of drugstore chain and pharmacy benefits manager has risen by 8.78% in the past month, leading the Medical sector's gain of 3.5% and the S&P 500's gain of 0.97%.
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 November 4, 2026. The company is predicted to post an EPS of $1.62, indicating a 1.25% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $105.04 billion, reflecting a 2.11% rise from the equivalent quarter last year.
CVS's full-year Zacks Consensus Estimates are calling for earnings of $8.02 per share and revenue of $418.17 billion. These results would represent year-over-year changes of +18.81% and +4.01%, respectively.
It is also important to note the recent changes to analyst estimates for CVS Health. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. At present, CVS Health boasts a Zacks Rank of #3 (Hold).
In terms of valuation, CVS Health is currently trading at a Forward P/E ratio of 11.81. This valuation marks a discount compared to its industry average Forward P/E of 17.64.
One should further note that CVS currently holds a PEG ratio of 0.88. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. CVS's industry had an average PEG ratio of 1.76 as of yesterday's close.
The Medical Services industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 164, finds itself in the bottom 34% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow CVS in the coming trading sessions, be sure to utilize Zacks.com.
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CVS Health Corporation (CVS): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).