CVS Health Corporation (CVS) Low Quarter Sets In as EPS turns Negative

With PEG at 2.83 and taking in to account future growth factors provides relative trade-off, further compared to its expected growth , Price to earnings is high, in contrary the business doesn’t have a high enough growth rate to support its P /E. compared to sector average PEG at 2.68 current levels seem to be indications of bargain relative to current levels .

Total Money flow for the day ended at $-1103.63mn with tick up at $4219.89mn and tick down at $5323.52mn led to up /down ratio of 0.79x. Block trades acted as a tailwind, coming in at $-1139.91mn and $595.30mn and $1735.21mn of tick ups and tick downs respectivelyHealth Care sector is staging a rebound at 8472.22 points, comparatively to the broader index, has seen a change of 0.02 .

Strong management continue to drive growth and has lead to improving 14.40% return of equity . Unable to break away resistance at 66.41 business continues to trend in red.

Talking about EPS side of the CVS Health Corporation per share earnings solid at a plus of 5.60%on the final note CVS Health Corporation speculations indicate analyst are expecting downtrend in profits per every outstanding share of stock by as much as 7.24% by next year .

CVS Health Corporation net income to total assets has remained constant with 5.40% in Health Care Plans industry . It would help to decrease the level of company’s current liabilities and therefore , improve the current ratio however, firm’s higher quick ratio 1% indicates weak liquidity strength in short term.

CVS Health Corporation would not be able to pay off its short term debts without any financial trouble , this implies CVS Health Corporation current ratio below 1 at 1% is not in theideal zone.

Charts indicate negative reversals with rsi 47.8 resumption of the downtrend, overall company charts are currently indicating a dull movement , RSI pattern is between the same levels of 40 and 80.

With multiples of earning growth forecasted CVS Health Corporation traders seem willing to pay premium at 14.8x and seems stock might still be cheap , CVS Health Corporation is trading at lower price to its PE and with this current level , we could reason that the asset is oversold in this aspect .

However CVS Health Corporation falls short of Healthcare sector PE by -13.05 with sector PE at 27.85. CVS Health Corporation is set to do some what above than the market returnsIt is crucial to state that the analyst at Citigroup have a Neutral rating on the stock for the foreseeable futureProvided the broader market remains healthy Alvin Concepcion form Citigroup expects PT of 76 reflecting raise of 2.7% from 74End of the day Monday, Dec 18 market cap stood at $72816.72 M , however we prefer enterprise value against market cap for fair value and company has been favourites with Institutional investors.

Future growth with prospective PE ratio indicate increase of growth over the next full-year fiscal period , with fwd pe 11.33 is above in parallel to the regression of business returns based on trailing P /E ratio .

CVS Health Corporation future value indicators are at 11.33 indicates future growth does not seem to be on uptrend , and the expected price-earnings based on 2017 numbers is slightly lower than historical numbers .

Company’s low beta indicates that the stock swings less compared to market , further evident by the fact that the CVS Health Corporation underlying asset volatile value is at 0.91.

Firm is holding positive assets on book which is supported by PB of 2.09. Most of the analyst firms boosted their price targets for the Healthcare sector, as company traded above yearly low . The firm has seen some correction in its stock value representing buying interest at all lows .

With 5 years EPS forecast 5.23% higher than P /E 14.8 potential future price movement are high and further will have less of an upward effect on the price growth .

Share this post