Is it time to Buy before this week’s earning report CVS Health (NYSE:CVS)

Earnings results for CVS Health (NYSE:CVS)

CVS Health Corporation is expected* to report earnings on 11/06/2020 before market open. The report will be for the fiscal Quarter ending Sep 2020. According to Zacks Investment Research, based on 11 analysts’ forecasts, the consensus EPS forecast for the quarter is $1.34. The reported EPS for the same quarter last year was $1.8399999999999999.

CVS Health last issued its earnings data on August 5th, 2020. The pharmacy operator reported $2.64 earnings per share for the quarter, beating the consensus estimate of $1.93 by $0.71. The company earned $65.30 billion during the quarter, compared to the consensus estimate of $64.29 billion. Its revenue was up 2.9% compared to the same quarter last year. CVS Health has generated $7.08 earnings per share over the last year and currently has a price-to-earnings ratio of 9.8. CVS Health has confirmed that its next quarterly earnings report will be published on Friday, November 6th, 2020. CVS Health will be holding an earnings conference call on Friday, November 6th. Interested parties can register for or listen to the call using this link.

Analyst Opinion on CVS Health (NYSE:CVS)

17 Wall Street analysts have issued ratings and price targets for CVS Health in the last 12 months. Their average twelve-month price target is $82.33, predicting that the stock has a possible upside of 34.07%. The high price target for CVS is $104.00 and the low price target for CVS is $66.00. There are currently 3 hold ratings, 12 buy ratings and 2 strong buy ratings for the stock, resulting in a consensus rating of “Buy.”

CVS Health has received a consensus rating of Buy. The company’s average rating score is 2.94, and is based on 12 buy ratings, 3 hold ratings, and no sell ratings. According to analysts’ consensus price target of $82.33, CVS Health has a forecasted upside of 34.1% from its current price of $61.41. CVS Health has only been the subject of 2 research reports in the past 90 days.

Dividend Strength: CVS Health (NYSE:CVS)

CVS Health pays a meaningful dividend of 3.31%, higher than the bottom 25% of all stocks that pay dividends. CVS Health has only been increasing its dividend for 1 years. The dividend payout ratio of CVS Health is 28.25%. This payout ratio is at a healthy, sustainable level, below 75%. Based on earnings estimates, CVS Health will have a dividend payout ratio of 26.60% next year. This indicates that CVS Health will be able to sustain or increase its dividend.

Insiders buying/selling: CVS Health (NYSE:CVS)

In the past three months, CVS Health insiders have not sold or bought any company stock. Only 0.46% of the stock of CVS Health is held by insiders. 75.88% of the stock of CVS Health is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

Earnings and Valuation of CVS Health (NYSE:CVS

Earnings for CVS Health are expected to grow by 4.01% in the coming year, from $7.23 to $7.52 per share. The P/E ratio of CVS Health is 9.76, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 19.28. The P/E ratio of CVS Health is 9.76, which means that it is trading at a less expensive P/E ratio than the Retail/Wholesale sector average P/E ratio of about 32.99. CVS Health has a PEG Ratio of 1.39. PEG Ratios above 1 indicate that a company could be overvalued. CVS Health has a P/B Ratio of 1.24. P/B Ratios below 3 indicates that a company is reasonably valued with respect to its assets and liabilities.

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