Why CVS Health (CVS) is a Top Value Stock for the Long-Term
While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.
Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to highlight the most attractive and discounted stocks.
Headquartered in Woonsocket, RI, CVS Health Corporation (formerly known as CVS Caremark Corporation) is a pharmacy innovation company with integrated offerings across the entire spectrum of pharmacy care. On Sep 3, 2014, CVS Caremark Corporation announced a change of its corporate name to CVS Health to reflect its broader healthcare commitment.
CVS is a Zacks Rank #2 (Buy) stock, with a Value Style Score of A and VGM Score of A. Shares are currently trading at a forward P/E of 10.9X for the current fiscal year compared to the Medical Services industry's P/E 15.9X. Additionally, CVS has a PEG Ratio of 1 and a Price/Cash Flow ratio of 7.3X. Value investors should also note CVS' Price/Sales ratio of 0.2X.
A company's earnings performance is important for value investors as well. For fiscal 2025, 12 analysts revised their earnings estimate higher in the last 60 days for CVS, while the Zacks Consensus Estimate has increased $0.23 to $6.11 per share. CVS also holds an average earnings surprise of 18.1%.
With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding CVS to their portfolios.
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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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