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Cardinal Health (CAH) Dips More Than Broader Markets: What You Should Know
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Cardinal Health (CAH - Free Report) closed at $77.57 in the latest trading session, marking a -1.36% move from the prior day. This change lagged the S&P 500's daily loss of 0.08%. Elsewhere, the Dow lost 0.34%, while the tech-heavy Nasdaq added 11.55%.
Prior to today's trading, shares of the prescription drug distributor had gained 1.41% over the past month. This has outpaced the Medical sector's gain of 0.62% and the S&P 500's loss of 1.03% in that time.
Wall Street will be looking for positivity from Cardinal Health as it approaches its next earnings report date. This is expected to be February 2, 2023. On that day, Cardinal Health is projected to report earnings of $1.17 per share, which would represent a year-over-year decline of 7.87%. Meanwhile, our latest consensus estimate is calling for revenue of $49.68 billion, up 9.29% from the prior-year quarter.
CAH's full-year Zacks Consensus Estimates are calling for earnings of $5.32 per share and revenue of $199.15 billion. These results would represent year-over-year changes of +5.14% and +9.81%, respectively.
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 such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.92% higher. Cardinal Health is currently sporting a Zacks Rank of #2 (Buy).
Digging into valuation, Cardinal Health currently has a Forward P/E ratio of 14.77. For comparison, its industry has an average Forward P/E of 19.75, which means Cardinal Health is trading at a discount to the group.
Also, we should mention that CAH has a PEG ratio of 1.26. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Medical - Dental Supplies stocks are, on average, holding a PEG ratio of 2.23 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 179, putting it in the bottom 29% 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) Dips More Than Broader Markets: What You Should Know
Cardinal Health (CAH - Free Report) closed at $77.57 in the latest trading session, marking a -1.36% move from the prior day. This change lagged the S&P 500's daily loss of 0.08%. Elsewhere, the Dow lost 0.34%, while the tech-heavy Nasdaq added 11.55%.
Prior to today's trading, shares of the prescription drug distributor had gained 1.41% over the past month. This has outpaced the Medical sector's gain of 0.62% and the S&P 500's loss of 1.03% in that time.
Wall Street will be looking for positivity from Cardinal Health as it approaches its next earnings report date. This is expected to be February 2, 2023. On that day, Cardinal Health is projected to report earnings of $1.17 per share, which would represent a year-over-year decline of 7.87%. Meanwhile, our latest consensus estimate is calling for revenue of $49.68 billion, up 9.29% from the prior-year quarter.
CAH's full-year Zacks Consensus Estimates are calling for earnings of $5.32 per share and revenue of $199.15 billion. These results would represent year-over-year changes of +5.14% and +9.81%, respectively.
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 such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.92% higher. Cardinal Health is currently sporting a Zacks Rank of #2 (Buy).
Digging into valuation, Cardinal Health currently has a Forward P/E ratio of 14.77. For comparison, its industry has an average Forward P/E of 19.75, which means Cardinal Health is trading at a discount to the group.
Also, we should mention that CAH has a PEG ratio of 1.26. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Medical - Dental Supplies stocks are, on average, holding a PEG ratio of 2.23 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 179, putting it in the bottom 29% 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.