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Cardinal Health (CAH) Gains But Lags Market: What You Should Know
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In the latest trading session, Cardinal Health (CAH - Free Report) closed at $52.63, marking a +0.61% move from the previous day. This change lagged the S&P 500's 2.44% gain on the day. At the same time, the Dow added 1.65%, and the tech-heavy Nasdaq gained 0.28%.
Heading into today, shares of the prescription drug distributor had gained 0.27% over the past month, outpacing the Medical sector's loss of 12.92% and the S&P 500's loss of 9.65% in that time.
Investors will be hoping for strength from Cardinal Health as it approaches its next earnings release, which is expected to be February 3, 2022. In that report, analysts expect Cardinal Health to post earnings of $1.23 per share. This would mark a year-over-year decline of 29.31%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $45.15 billion, up 8.68% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.40 per share and revenue of $177.66 billion, which would represent changes of -3.05% and +9.35%, respectively, from the prior year.
It is also important to note the 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 5.03% lower. Cardinal Health currently has a Zacks Rank of #5 (Strong Sell).
Valuation is also important, so investors should note that Cardinal Health has a Forward P/E ratio of 9.69 right now. For comparison, its industry has an average Forward P/E of 17.94, which means Cardinal Health is trading at a discount to the group.
Meanwhile, CAH's PEG ratio is currently 2.1. 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. The Medical - Dental Supplies industry currently had an average PEG ratio of 1.57 as of yesterday's close.
The Medical - Dental Supplies industry is part of the Medical sector. This group has a Zacks Industry Rank of 85, putting it in the top 34% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Cardinal Health (CAH) Gains But Lags Market: What You Should Know
In the latest trading session, Cardinal Health (CAH - Free Report) closed at $52.63, marking a +0.61% move from the previous day. This change lagged the S&P 500's 2.44% gain on the day. At the same time, the Dow added 1.65%, and the tech-heavy Nasdaq gained 0.28%.
Heading into today, shares of the prescription drug distributor had gained 0.27% over the past month, outpacing the Medical sector's loss of 12.92% and the S&P 500's loss of 9.65% in that time.
Investors will be hoping for strength from Cardinal Health as it approaches its next earnings release, which is expected to be February 3, 2022. In that report, analysts expect Cardinal Health to post earnings of $1.23 per share. This would mark a year-over-year decline of 29.31%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $45.15 billion, up 8.68% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.40 per share and revenue of $177.66 billion, which would represent changes of -3.05% and +9.35%, respectively, from the prior year.
It is also important to note the 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 5.03% lower. Cardinal Health currently has a Zacks Rank of #5 (Strong Sell).
Valuation is also important, so investors should note that Cardinal Health has a Forward P/E ratio of 9.69 right now. For comparison, its industry has an average Forward P/E of 17.94, which means Cardinal Health is trading at a discount to the group.
Meanwhile, CAH's PEG ratio is currently 2.1. 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. The Medical - Dental Supplies industry currently had an average PEG ratio of 1.57 as of yesterday's close.
The Medical - Dental Supplies industry is part of the Medical sector. This group has a Zacks Industry Rank of 85, putting it in the top 34% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.