CVS or HQY: Which Is the Better Value Stock Right Now?

Core Insights - CVS Health (CVS) and HealthEquity (HQY) are both considered by investors in the Medical Services sector, with a focus on determining which stock offers better value for investment at present [1] Valuation Metrics - Both CVS and HQY currently hold a Zacks Rank of 2 (Buy), indicating positive earnings estimate revisions and an improving earnings outlook for both companies [3] - CVS has a forward P/E ratio of 12.96, while HQY has a forward P/E of 24.08, suggesting CVS is more attractively priced [5] - CVS's PEG ratio is 0.91, indicating it is undervalued relative to its expected EPS growth, whereas HQY's PEG ratio is 1.11 [5] - CVS has a P/B ratio of 1.35, compared to HQY's P/B of 3.73, further indicating CVS's relative undervaluation [6] - Based on these valuation metrics, CVS is assigned a Value grade of A, while HQY receives a Value grade of C, suggesting CVS is the superior value option at this time [6]