CVS Health (CVS) closed at $74.46 in the latest trading session, marking a +0.53% move from the prior day. This change outpaced the S&P 500's 0.02% loss on the day.
Prior to today's trading, shares of the drugstore chain and pharmacy benefits manager had gained 2.38% over the past month. This has outpaced the Retail-Wholesale sector's gain of 2.08% and lagged the S&P 500's gain of 6.61% in that time.
CVS will be looking to display strength as it nears its next earnings release, which is expected to be May 4, 2021. The company is expected to report EPS of $1.69, down 11.52% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $68.44 billion, up 2.53% from the prior-year quarter.
CVS's full-year Zacks Consensus Estimates are calling for earnings of $7.52 per share and revenue of $280.97 billion. These results would represent year-over-year changes of +0.27% and +4.56%, respectively.
Investors might also notice recent changes to analyst estimates for CVS. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.47% higher within the past month. CVS is currently a Zacks Rank #3 (Hold).
Investors should also note CVS's current valuation metrics, including its Forward P/E ratio of 9.85. Its industry sports an average Forward P/E of 10.44, so we one might conclude that CVS is trading at a discount comparatively.
Meanwhile, CVS's PEG ratio is currently 1.46. 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. The Retail - Pharmacies and Drug Stores industry currently had an average PEG ratio of 1.54 as of yesterday's close.
The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 195, putting it in the bottom 24% of all 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.
To follow CVS in the coming trading sessions, be sure to utilize Zacks.com.