Are You a Value Investor? This 1 Stock Could Be the Perfect Pick
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.
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.
Why Investors Should Pay Attention to This Value Stock
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.
CVS Health (CVS)
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 sits at a Zacks Rank #2 (Buy), holds a Value Style Score of A, and has a VGM Score of A. Compared to the Medical Services industry's P/E of 17.3X, shares of CVS Health are trading at a forward P/E of 10.4X. CVS also has a PEG Ratio of 0.9, a Price/Cash Flow ratio of 7X, and a 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 $0.22 to $6.10 per share. CVS also holds an average earnings surprise of 18.1%.
Investors should take the time to consider CVS for their portfolios due to its solid Zacks Ranks, notable earnings and valuation metrics, and impressive Value and VGM Style Scores.
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CVS Health Corporation (CVS) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).