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CVS Health (CVS) closed at $51.96 in the latest trading session, marking a -0.35% move from the prior day. This move lagged the S&P 500's daily loss of 0.21%. Elsewhere, the Dow lost 0.16%, while the tech-heavy Nasdaq lost 0.89%.
Shares of the drugstore chain and pharmacy benefits manager have appreciated by 15.15% over the course of the past month, outperforming the Retail-Wholesale sector's loss of 2.84% and the S&P 500's loss of 1.56%.
Market participants will be closely following the financial results of CVS Health in its upcoming release. The company plans to announce its earnings on February 12, 2025. It is anticipated that the company will report an EPS of $0.94, marking a 55.66% fall compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $97.27 billion, indicating a 3.69% 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. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 2.08% lower within the past month. CVS Health is currently a Zacks Rank #5 (Strong Sell).
From a valuation perspective, CVS Health is currently exchanging hands at a Forward P/E ratio of 8.56. This indicates a premium in contrast to its industry's Forward P/E of 7.89.
It's also important to note that CVS currently trades at a PEG ratio of 0.78. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Retail - Pharmacies and Drug Stores industry had an average PEG ratio of 0.78.
The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 235, putting it in the bottom 7% of all 250+ industries.