The most recent trading session ended with CVS Health (CVS) standing at $68.07, reflecting a +0.13% shift from the previouse trading day's closing. The stock trailed the S&P 500, which registered a daily gain of 0.67%. Elsewhere, the Dow gained 0.56%, while the tech-heavy Nasdaq added 0.87%.

Heading into today, shares of the drugstore chain and pharmacy benefits manager had gained 5.87% over the past month, outpacing the Medical sector's loss of 5.32% and the S&P 500's loss of 5.28% in that time.

Investors will be eagerly watching for the performance of CVS Health in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $1.62, reflecting a 23.66% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $92.82 billion, indicating a 4.95% increase compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $5.89 per share and revenue of $387.86 billion, which would represent changes of +8.67% and +4.04%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for CVS Health. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.12% lower. At present, CVS Health boasts a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that CVS Health has a Forward P/E ratio of 11.55 right now. For comparison, its industry has an average Forward P/E of 15.6, which means CVS Health is trading at a discount to the group.

One should further note that CVS currently holds a PEG ratio of 1.03. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Medical Services industry had an average PEG ratio of 1.42.

The Medical Services industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 66, placing it within the top 27% of over 250 industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

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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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