CVS Health (CVS) closed at $56.82 in the latest trading session, marking a -0.14% move from the prior day. The stock fell short of the S&P 500, which registered a gain of 0.53% for the day. Elsewhere, the Dow saw an upswing of 0.38%, while the tech-heavy Nasdaq appreciated by 0.25%.
The drugstore chain and pharmacy benefits manager's stock has climbed by 26.75% in the past month, exceeding the Retail-Wholesale sector's gain of 5.57% and the S&P 500's gain of 1.24%.
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 February 12, 2025. It is anticipated that the company will report an EPS of $0.89, marking a 58.02% fall compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $97.06 billion, indicating a 3.46% growth compared to the corresponding quarter of the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for CVS Health. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. The Zacks Consensus EPS estimate has moved 2.72% lower within the past month. CVS Health presently features a Zacks Rank of #5 (Strong Sell).
With respect to valuation, CVS Health is currently being traded at a Forward P/E ratio of 9.53. This represents a premium compared to its industry's average Forward P/E of 7.03.
One should further note that CVS currently holds a PEG ratio of 0.62. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CVS's industry had an average PEG ratio of 0.62 as of yesterday's close.
The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 237, placing it within the bottom 6% of over 250 industries.
The Zacks Industry Rank gauges the strength of our 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.
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