Why Is CVS Health Corporation (CVS) Moving So Hard, So Fast?

CVS Health Corporation (CVS) shares saw a recent bid of $77.90 and 4.88M shares have exchanged hands in the recent trading session, yielding a 1.47% gain over the past week. The stock price decreased -1.13% or $0.89 versus $78.79 at the end of the prior session. This change led market cap to move at $80.24B, putting the price -21.05% below the 52-week high and 12.41% above the 52-week low. The company’s stock has a normal trading capacity of 6.43M shares while the relative volume is 0.76.

To stay one step ahead we extended our research by comparing different price targets. The stock notched a 12-month high of $88.45 while $104.00 target is by far the most aggressive out of analysts who are currently evaluating the company, $15.55 higher than the next highest 52-week price estimate. The lowest 12-month price target for the shares is $77.00, which would be decrease of about -1% of its current value. The mean target of $88.50 should be compared with the price when the stock was languishing around $69.30 a share. And it remains to be seen which target price CVS can achieve without sacrificing much as the company is holding a -19.12% fall for the past twelve months.

By historical standards, CVS Health Corporation remains a cheap stock. The company’s current price-earnings ratio amounts to 16.34 times earnings, below the average P/E ratio of 22.50 times earnings. For now, CVS Health Corporation is the toast of Wall Street as its ABR stands at 2.00 with 8 out of 25 analysts rating the stock a buy. Over the short term, some market observers may have noticed that CVS Health Corporation has a 2.42% short float with 15 days to cover. It becomes significant when you consider how many shares are shorted versus the average daily volume, means how many days to cover those short shares at that volume. CVS Health Corporation has far performed well this year, with the share price down -1.28% since January. Over the past 2 quarters, the stock is up 0.36%, compared with a fall of nearly -3.60% for 3 months and about -3.90% for the past 30 days.

Last time, the company shocked Wall Street by reporting EPS of $1.17, smashing the consensus of $1.10 per share. Revenue for the quarter also killed consensus, coming in at $44.51B, compared to the consensus of 44.2B. Nonetheless, from here on out, earnings per share forecasts for the current quarter are $1.31. The company is expected to report EPS as high as $1.33 and as low as $1.29 per share. Similarly, full-year EPS forecasts have ranged between $5.82 and $5.93. The mean EPS estimate is $5.87. On the other side, sales forecasts for the current quarter are $45.39B. The stock is expected to report revenue as high as $45.78B and as low as $44.98B per share. Similarly, full-year sales forecasts have ranged between $183.59B and $186.12B. The mean revenue estimate is $184.34B.

Over the last 5 years, CVS Health Corporation has averaged a 13.60% YoY EPS growth rate and a 10.60% revenue growth rate. Analysts are expecting EPS growth rates to be at 5.60% this quarter and EPS estimate for next year reflect 8.50% growth rate.

Sell-side analysts also have something to say about this company. Tigress Financial analysts stated on 28/04/2017 that they launched coverage on this stock with Buy rating. Atlantic Equities had a markedly different take on 06/02/2017, proposing that CVS Health Corporation is now considered Neutral versus prior Overweight rating. Robert W. Baird had a markedly different take on 02/02/2017, proposing that CVS Health Corporation is now considered Neutral versus prior Outperform rating. Jefferies had a markedly different take on 12/12/2016, proposing that CVS Health Corporation is now considered Hold versus prior Buy rating.

Why Is CVS Health Corporation (CVS) Moving So Hard, So Fast? was last modified: June 7th, 2017 by Edward Walker
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