Why CVS Health (CVS) Outpaced the Stock Market Today

CVS Health (CVS) closed the most recent trading day at $44.36, moving +1.32% from the previous trading session. This change outpaced the S&P 500's 1.09% gain on the day. Meanwhile, the Dow gained 1.18%, and the Nasdaq, a tech-heavy index, added 1.03%.Prior to today's trading, shares of the drugstore chain and pharmacy benefits manager had lost 23.33% over the past month. This has lagged the Retail-Wholesale sector's gain of 3.19% and the S&P 500's loss of 0.71% in that time.The investment community will be closely monitoring the performance of CVS Health in its forthcoming earnings report. The company is forecasted to report an EPS of $1.04, showcasing a 50.94% downward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $97.27 billion, indicating a 3.69% increase compared to the same quarter of the previous year.CVS's full-year Zacks Consensus Estimates are calling for earnings of $5.29 per share and revenue of $371.96 billion. These results would represent year-over-year changes of -39.47% and +3.96%, respectively.Investors might also notice recent changes to analyst estimates for CVS Health. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 last 30 days, the Zacks Consensus EPS estimate has moved 2.6% lower. CVS Health presently features a Zacks Rank of #3 (Hold).Looking at valuation, CVS Health is presently trading at a Forward P/E ratio of 8.27. This denotes a premium relative to the industry's average Forward P/E of 6.17.Meanwhile, CVS's PEG ratio is currently 0.76. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. By the end of yesterday's trading, the Retail - Pharmacies and Drug Stores industry had an average PEG ratio of 0.76.The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 189, positioning it in the bottom 25% of all 250+ industries.The Zacks Industry Rank is ordered 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.Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>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 Weiter zum vollständigen Artikel bei Zacks