CVS Health (CVS) closed at $87.95 in the latest trading session, marking a +1.76% move from the prior day. This change outpaced the S&P 500's 0.22% loss on the day. Meanwhile, the Dow lost 0.66%, and the Nasdaq, a tech-heavy index, lost 0.22%.
Shares of the drugstore chain and pharmacy benefits manager have depreciated by 10.03% over the course of the past month, underperforming the Medical sector's loss of 4.73%, and the S&P 500's gain of 1.4%.
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 forecasted to report an EPS of $1.62, showcasing a 1.25% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $105.04 billion, showing a 2.11% escalation compared to the year-ago quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $8.02 per share and a revenue of $418.17 billion, representing changes of +18.81% and +4.01%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for CVS Health. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 remained unchanged. CVS Health currently has a Zacks Rank of #3 (Hold).
Digging into valuation, CVS Health currently has a Forward P/E ratio of 10.77. This represents a discount compared to its industry average Forward P/E of 17.01.
We can additionally observe that CVS currently boasts a PEG ratio of 0.84. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Medical Services industry held an average PEG ratio of 1.62.
The Medical Services industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 105, positioning it in the top 43% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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).