CVS Health Corporation CVS is scheduled to report third-quarter 2020 results on Nov 6, before the opening bell.In the last reported quarter, the company delivered a positive earnings surprise of 36.79%. It beat earnings estimates in each of the trailing four quarters, the positive earnings surprise being 15.23%, on average.Factors at PlayLike most of the pharmacy benefits managers (PBM), CVS Health is bearing the brunt of the pandemic disruption. Given the reduced walk-in-clinical appointments and patient visits, the company, which has a huge PBM client base, is expected to have seen a significant decline in third-quarter revenues. Further continued price compression amid the gloomy economic scenario is expected to have significantly affected the top line in the quarter. Also, lower new therapy starts and higher operating costs might have reduced the company’s PBM profit margins.However, over the past few months, the company is experiencing growth in Specialty Pharmacy and brand inflation. The specialty pharmacy capabilities, wherein it is expected to have witnessed continued growth include Coram infusion professionals (till the last-reported quarter end, it conducted more than 160,000 home visits), collaborating with hospitals and providers to help transition eligible IV therapy patients to home-based care. This, while freeing up important hospital bed capacity, should have reduced the cost of care. Further, the company’s new Zinc Health Services, while reducing the cost of brands and specialty drugs, might have contributed to CVS Health’s third-quarter profit.CVS Health Corporation Price and EPS Surprise CVS Health Corporation price-eps-surprise | CVS Health Corporation Quotealign: justify;"> The company’s retail pharmacy services business is likely to have gained amid the pandemic as this segment has put in a lot of effort to meet the crisis. However, the company might have faced issues like lower prescription and soft front store volume due to decline in provider visits. Nevertheless, there might have been a sequential improvement in the overall situation with store traffic beginning to return on relaxation of stay-at-home orders. We note that, prescription volume growth started to accelerate in June. In June, front store growth started to benefit from states reopening, followed by customers stocking up on key preventative and treatment items in the Sunbelt states in July. Meanwhile, given ahuge ramp up in demand for the company’s services, the company hired a large number of store associates, home delivery drivers, distribution center employees and member/customer service professionals. This is expected to get reflected in the third-quarter top-line numbers.Within healthcare benefits, the company earlier noted that, the medical cost utilization largely returned to normal levels in June and July. This trend is likely to have continued through the third quarter. Further, this segment is expected to have gained from significantly lower medical costs.Within diagnostic and digital services, through the end of July, CVS Health administered approximately 2 million COVID-19 tests with the vast majority scheduled digitally as a result of its highly adaptable consumer centric digital health strategy. Recently, it launched a new digital platform to aid in registering COVID-19 patients for clinical trials as vaccines and therapeutic treatments are developed. We expect these to reflect positively on the company’s third-quarter results.The Estimate PictureThe Zacks Consensus Estimate for third-quarter adjusted earnings of $1.34 suggests a 27.2% rise from the year-ago quarter reported figure. The consensus estimate for revenues is currently pegged at $66.54 billion, indicating 2.7% growth from the year-earlier reported number.What the Quantitative Model PredictsPer our proven model, a stock with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), along with a positive Earnings ESPhas good chances of beating estimates. This is the case as you can see:Earnings ESP: CVS Health has an Earnings ESP of +1.58%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.Zacks Rank: CVS Health carries a Zacks Rank #3.Other Stocks Worth a LookHere are a few other medical stocks worth considering as these also have the right combination of elements to beat on earnings this reporting cycle.LHC Group, Inc. LHCG has an Earnings ESP of +1.85% and it currently carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.Fulcrum Therapeutics, Inc. FULC has an Earnings ESP of +7.58% and is a Zacks #2 Ranked stock.SeaSpine Holdings Corporation SPNE has an Earnings ESP of + 6.67% and it carries a Zacks Rank of 2 at present.The Hottest Tech Mega-Trend of AllLast year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.See Zacks' 3 Best Stocks to Play This Trend >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CVS Health Corporation (CVS): Free Stock Analysis Report LHC Group, Inc. (LHCG): Free Stock Analysis Report SeaSpine Holdings Corporation (SPNE): Free Stock Analysis Report Fulcrum Therapeutics, Inc. (FULC): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research