Company Performance - CVS Health has been a port in the storm for healthcare investors, with the S&P up over 58% for the year [2][3][20] - CVS's healthcare benefits division saw nearly 12% revenue growth with operating income up almost 40% year-over-year [6] - CVS posted a phenomenal 35 cent earnings beat off a dollar 46 basis [9] - CVS raised its full-year revenue guidance up by nearly $9 billion and boosted their full-year earnings outlook by 25 cents at the midpoint [10][11] - The health service division, which includes the Caremark PBM business and the intore medical clinics, put up a 102% revenue growth [12] - The drugstore business delivered a $15% billion revenue beat, with operating income up 76% year-over-year [13] Market Dynamics - CVS is benefiting from Walgreens' retrenchment and Rite Aid's bankruptcy, taking market share [4][14] - Comparable pharmacy sales were up 18% year-over-year [14] - CVS's medical benefits ratio clocked in at 899%, up 30 basis points year-over-year, but 80 basis points lower than Wall Street expectations [8] Investment Opportunity - CVS stock sells for just 11 times the midpoint of its new full-year earnings forecast and pays a $266 annual dividend, sporting a 37% yield [15][16] - UBS upgraded CVS to a buy following two strong consecutive quarters of execution [19]

Financial Performance - Petco Health & Wellness reported a quarterly loss of $0.01 per share, better than the Zacks Consensus Estimate of a loss of $0.02, and an improvement from a loss of $0.04 per share a year ago, indicating a 50% earnings surprise [1] - The company posted revenues of $1.49 billion for the quarter ended April 2025, slightly missing the Zacks Consensus Estimate by 0.01%, and down from $1.53 billion year-over-year [2] - Over the last four quarters, Petco has surpassed consensus EPS estimates two times and topped revenue estimates only once [2] Stock Performance and Outlook - Petco shares have declined approximately 6.6% since the beginning of the year, contrasting with the S&P 500's gain of 1.5% [3] - The company's earnings outlook will be crucial for future stock performance, with current consensus EPS estimates at $0.01 for the coming quarter and $0.12 for the current fiscal year [4][7] Industry Context - The Retail - Miscellaneous industry, to which Petco belongs, is currently ranked in the top 15% of over 250 Zacks industries, suggesting a favorable environment for stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]