Yahoo Finance Cardinal Health (CAH) Outpaces Stock Market Gains: What You Should Know
Cardinal Health (CAH) closed at $70.37 in the latest trading session, marking a +1.97% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.56%. At the same time, the Dow added 0.41%, and the tech-heavy Nasdaq gained 1.35%.
Heading into today, shares of the prescription drug distributor had lost 11.18% over the past month, lagging the Medical sector's loss of 2.2% and the S&P 500's loss of 1.48% in that time.
Wall Street will be looking for positivity from Cardinal Health as it approaches its next earnings report date. On that day, Cardinal Health is projected to report earnings of $1.46 per share, which would represent year-over-year growth of 0.69%. Our most recent consensus estimate is calling for quarterly revenue of $49.05 billion, up 9.39% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.42 per share and revenue of $201.83 billion, which would represent changes of +7.11% and +11.29%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Cardinal Health. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Cardinal Health currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Cardinal Health is holding a Forward P/E ratio of 12.73. This represents a discount compared to its industry's average Forward P/E of 19.54.
We can also see that CAH currently has a PEG ratio of 1.1. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Medical - Dental Supplies stocks are, on average, holding a PEG ratio of 2.01 based on yesterday's closing prices.
The Medical - Dental Supplies industry is part of the Medical sector. This group has a Zacks Industry Rank of 61, putting it in the top 25% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow CAH in the coming trading sessions, be sure to utilize Zacks.com.
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Cardinal Health, Inc. (CAH) : Free Stock Analysis Report
