In the latest trading session, CVS Health (CVS) closed at $95.93, marking a +1.17% move from the previous day. This change outpaced the S&P 500's 2.65% loss on the day. Elsewhere, the Dow saw a downswing of 1.35%, while the tech-heavy Nasdaq depreciated by 4.18%.
The drugstore chain and pharmacy benefits manager's shares have seen an increase of 8.54% over the last month, surpassing the Medical sector's gain of 3.33% and the S&P 500's gain of 5.47%.
The investment community will be closely monitoring the performance of CVS Health in its forthcoming earnings report. The company's upcoming EPS is projected at $1.85, signifying a 2.21% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $100.18 billion, up 1.28% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $7.44 per share and revenue of $409 billion. These totals would mark changes of +10.22% and +1.72%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for CVS Health. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 4.1% increase. CVS Health presently features a Zacks Rank of #2 (Buy).
Digging into valuation, CVS Health currently has a Forward P/E ratio of 12.75. This indicates a discount in contrast to its industry's Forward P/E of 15.35.
It's also important to note that CVS currently trades at a PEG ratio of 0.93. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Medical Services stocks are, on average, holding a PEG ratio of 1.46 based on yesterday's closing prices.
The Medical Services industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 107, placing it within the top 44% of over 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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CVS Health Corporation (CVS): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).