CVS Health (CVS) Ascends While Market Falls: Some Facts to Note

CVS Health (CVS) closed at $72.80 in the latest trading session, marking a +2.12% move from the prior day. The stock's performance was ahead of the S&P 500's daily loss of 0.37%. At the same time, the Dow lost 0.18%, and the tech-heavy Nasdaq lost 0.84%.

Coming into today, shares of the drugstore chain and pharmacy benefits manager had lost 7.42% in the past month. In that same time, the Medical sector lost 8.47%, while the S&P 500 lost 3.7%.

The investment community will be closely monitoring the performance of CVS Health in its forthcoming earnings report. It is anticipated that the company will report an EPS of $2.22, marking a 1.33% fall compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $95.17 billion, indicating a 0.62% growth compared to the corresponding quarter of the prior year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $7.15 per share and a revenue of $407.7 billion, signifying shifts of +5.93% and +1.4%, respectively, from the last year.

Investors should also pay attention to any latest changes in analyst estimates for CVS Health. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Currently, CVS Health is carrying a Zacks Rank of #3 (Hold).

With respect to valuation, CVS Health is currently being traded at a Forward P/E ratio of 9.97. For comparison, its industry has an average Forward P/E of 15.15, which means CVS Health is trading at a discount to the group.

One should further note that CVS currently holds a PEG ratio of 0.74. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Medical Services stocks are, on average, holding a PEG ratio of 1.38 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 94, placing it within the top 39% 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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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This article originally published on Zacks Investment Research (zacks.com).

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