CVS Health (CVS) Outpaces Stock Market Gains: What You Should Know

In the latest trading session, CVS Health (CVS) closed at $66.11, marking a +1.83% move from the previous day. This change outpaced the S&P 500's 0.22% gain on the day. Elsewhere, the Dow gained 0.7%, while the tech-heavy Nasdaq added 0.08%.

Heading into today, shares of the drugstore chain and pharmacy benefits manager had gained 3.18% over the past month, lagging the Retail-Wholesale sector's gain of 12.32% and the S&P 500's gain of 9.27% in that time.

Investors will be hoping for strength from CVS as it approaches its nex t earnings release, which is expected to be February 14, 2019. In tha t report , analysts expect CVS to post earnings of $2.12 per share. This would mark year-over-year growth of 10.42%. Our most recent consensus estimate is calling for quarterly revenue of $50.73 billion, up 4.85% from the year-ago period.

It is also important to note the recent changes to analyst estimates for CVS. Recent revisions tend to reflect the latest 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.38% higher. CVS is currently a Zacks Rank #3 (Hold).

In terms of valuation, CVS is currently trading at a Forward P/E ratio of 8.81. This valuation marks a discount compared to its industry's average Forward P/E of 10.98.

Meanwhile, CVS's PEG ratio is currently 0.88. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CVS's industry had an average PEG ratio of 1.05 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 95, putting it in the top 38% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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