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The most recent trading session ended with CVS Health (CVS) standing at $57.53, reflecting a -0.16% shift from the previouse trading day's closing. The stock trailed the S&P 500, which registered a daily gain of 1.02%. On the other hand, the Dow registered a gain of 1.09%, and the technology-centric Nasdaq increased by 1.18%.

Prior to today's trading, shares of the drugstore chain and pharmacy benefits manager had lost 3.97% over the past month. This has lagged the Retail-Wholesale sector's gain of 1.87% and the S&P 500's gain of 4.44% in that time.

The investment community will be paying close attention to the earnings performance of CVS Health in its upcoming release. The company is slated to reveal its earnings on August 7, 2024. The company's upcoming EPS is projected at $1.77, signifying a 19.91% drop compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $91.62 billion, indicating a 3.03% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $7.02 per share and a revenue of $368.96 billion, demonstrating changes of -19.68% and +3.12%, respectively, from the preceding year.

Investors might also notice recent changes to analyst estimates for CVS Health. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. At present, CVS Health boasts a Zacks Rank of #3 (Hold).

With respect to valuation, CVS Health is currently being traded at a Forward P/E ratio of 8.21. This indicates a premium in contrast to its industry's Forward P/E of 6.61.

We can additionally observe that CVS currently boasts a PEG ratio of 0.55. 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. As of the close of trade yesterday, the Retail - Pharmacies and Drug Stores industry held an average PEG ratio of 0.65.

The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 247, positioning it in the bottom 2% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. 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.

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CVS Health Corporation (CVS) : Free Stock Analysis Report

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