CVS Health (CVS) ended the recent trading session at $78.09, demonstrating a -1.56% change from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily gain of 1.02%. Meanwhile, the Dow gained 0.63%, and the Nasdaq, a tech-heavy index, added 1.23%.
The drugstore chain and pharmacy benefits manager's stock has climbed by 4.2% in the past month, exceeding the Medical sector's loss of 4.81% and the S&P 500's gain of 0.63%.
Investors will be eagerly watching for the performance of CVS Health in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on May 6, 2026. The company's upcoming EPS is projected at $2.21, signifying a 1.78% drop compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $94.38 billion, indicating a 0.23% decrease compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $7.14 per share and a revenue of $406.01 billion, demonstrating changes of +5.78% and +0.98%, respectively, from the preceding year.
Investors should also take note of any recent adjustments to analyst estimates for CVS Health. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.13% lower. Currently, CVS Health is carrying a Zacks Rank of #3 (Hold).
Digging into valuation, CVS Health currently has a Forward P/E ratio of 11.1. This valuation marks a discount compared to its industry average Forward P/E of 15.51.
It's also important to note that CVS currently trades at a PEG ratio of 0.83. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Medical Services industry was having an average PEG ratio of 1.39.
The Medical Services industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 144, placing it within the bottom 41% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during 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).