CVS Health Corporation (CVS) Is a Trending Stock: Facts to Know Before Betting on It
Werte in diesem Artikel
CVS Health (CVS) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.Over the past month, shares of this drugstore chain and pharmacy benefits manager have returned -26.2%, compared to the Zacks S&P 500 composite's +1.1% change. During this period, the Zacks Retail - Pharmacies and Drug Stores industry, which CVS Health falls in, has lost 23.8%. The key question now is: What could be the stock's future direction?Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.For the current quarter, CVS Health is expected to post earnings of $1.02 per share, indicating a change of -51.9% from the year-ago quarter. The Zacks Consensus Estimate has changed -8.6% over the last 30 days.The consensus earnings estimate of $5.29 for the current fiscal year indicates a year-over-year change of -39.5%. This estimate has changed -1.5% over the last 30 days.For the next fiscal year, the consensus earnings estimate of $6.14 indicates a change of +16% from what CVS Health is expected to report a year ago. Over the past month, the estimate has changed -1.8%.Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, CVS Health is rated Zacks Rank #3 (Hold).The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:12 Month EPSProjected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.In the case of CVS Health, the consensus sales estimate of $97.27 billion for the current quarter points to a year-over-year change of +3.7%. The $371.96 billion and $387.29 billion estimates for the current and next fiscal years indicate changes of +4% and +4.1%, respectively.Last Reported Results and Surprise HistoryCVS Health reported revenues of $95.43 billion in the last reported quarter, representing a year-over-year change of +6.3%. EPS of $1.09 for the same period compares with $2.21 a year ago.Compared to the Zacks Consensus Estimate of $92.87 billion, the reported revenues represent a surprise of +2.75%. The EPS surprise was +1.87%.Over the last four quarters, CVS Health surpassed consensus EPS estimates three times. The company topped consensus revenue estimates two times over this period.ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.CVS Health is graded A on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about CVS Health. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.Free: 5 Stocks to Buy As Infrastructure Spending SoarsTrillions of dollars in Federal funds have been earmarked to repair and upgrade America’s infrastructure. In addition to roads and bridges, this flood of cash will pour into AI data centers, renewable energy sources and more.In, you’ll discover 5 surprising stocks positioned to profit the most from the spending spree that’s just getting started in this space.Download How to Profit from the Trillion-Dollar Infrastructure Boom absolutely free today.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CVS Health Corporation (CVS): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks
Ausgewählte Hebelprodukte auf CVS Health
Mit Knock-outs können spekulative Anleger überproportional an Kursbewegungen partizipieren. Wählen Sie einfach den gewünschten Hebel und wir zeigen Ihnen passende Open-End Produkte auf CVS Health
Der Hebel muss zwischen 2 und 20 liegen
Name | Hebel | KO | Emittent |
---|
Name | Hebel | KO | Emittent |
---|
Quelle: Zacks
Nachrichten zu CVS Health Corp
Analysen zu CVS Health Corp
Datum | Rating | Analyst | |
---|---|---|---|
05.06.2019 | CVS Health Buy | Standpoint Research | |
15.04.2019 | CVS Health Perform | Oppenheimer & Co. Inc. | |
12.04.2019 | CVS Health Market Perform | BMO Capital Markets | |
18.12.2018 | CVS Health Overweight | Barclays Capital | |
26.10.2018 | CVS Health Peer Perform | Wolfe Research |
Datum | Rating | Analyst | |
---|---|---|---|
05.06.2019 | CVS Health Buy | Standpoint Research | |
12.04.2019 | CVS Health Market Perform | BMO Capital Markets | |
18.12.2018 | CVS Health Overweight | Barclays Capital | |
30.01.2018 | CVS Health Strong Buy | Needham & Company, LLC | |
02.01.2018 | CVS Health Buy | Needham & Company, LLC |
Datum | Rating | Analyst | |
---|---|---|---|
15.04.2019 | CVS Health Perform | Oppenheimer & Co. Inc. | |
26.10.2018 | CVS Health Peer Perform | Wolfe Research | |
28.06.2017 | CVS Health Hold | Needham & Company, LLC | |
02.02.2017 | CVS Health Neutral | Robert W. Baird & Co. Incorporated | |
22.06.2016 | CVS Health Hold | Deutsche Bank AG |
Datum | Rating | Analyst | |
---|---|---|---|
25.07.2005 | Update Longs Drug Stores Corp.: Underperform | Bear Stearns |
Um die Übersicht zu verbessern, haben Sie die Möglichkeit, die Analysen für CVS Health Corp nach folgenden Kriterien zu filtern.
Alle: Alle Empfehlungen