CVS Health (CVS) closed the latest trading day at $68.87, indicating a -1.87% change from the previous session's end. The stock outperformed the S&P 500, which registered a daily loss of 3.46%. Meanwhile, the Dow experienced a drop of 2.5%, and the technology-dominated Nasdaq saw a decrease of 4.31%.

The drugstore chain and pharmacy benefits manager's shares have seen an increase of 8.24% over the last month, surpassing the Medical sector's loss of 10.85% and the S&P 500's loss of 5.27%.

The investment community will be closely monitoring the performance of CVS Health in its forthcoming earnings report. The company is scheduled to release its earnings on May 1, 2025. On that day, CVS Health is projected to report earnings of $1.62 per share, which would represent year-over-year growth of 23.66%. Simultaneously, our latest consensus estimate expects the revenue to be $92.82 billion, showing a 4.95% escalation compared to the year-ago quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5.89 per share and revenue of $387.86 billion. These totals would mark changes of +8.67% and +4.04%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for CVS Health. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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 has moved 0.03% higher. CVS Health is holding a Zacks Rank of #3 (Hold) right now.

In the context of valuation, CVS Health is at present trading with a Forward P/E ratio of 11.49. This represents a discount compared to its industry's average Forward P/E of 14.7.

It is also worth noting that CVS currently has a PEG ratio of 1.02. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CVS's industry had an average PEG ratio of 1.26 as of yesterday's close.

The Medical Services industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 84, which puts it in the top 34% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the 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

This article originally published on Zacks Investment Research (zacks.com).

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