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Is Cardinal Health (CAH) Stock Undervalued Right Now?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is Cardinal Health (CAH - Free Report) . CAH is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 13.35 right now. For comparison, its industry sports an average P/E of 18.19. Over the past 52 weeks, CAH's Forward P/E has been as high as 14.81 and as low as 9.20, with a median of 11.58.
We also note that CAH holds a PEG ratio of 1.15. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CAH's industry currently sports an average PEG of 1.62. CAH's PEG has been as high as 8.89 and as low as 1.11, with a median of 2, all within the past year.
Another great Medical - Dental Supplies stock you could consider is McKesson (MCK - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
McKesson is trading at a forward earnings multiple of 13.76 at the moment, with a PEG ratio of 1.33. This compares to its industry's average P/E of 18.19 and average PEG ratio of 1.62.
MCK's price-to-earnings ratio has been as high as 15.66 and as low as 11.69, with a median of 14.02, while its PEG ratio has been as high as 1.56 and as low as 0.99, with a median of 1.43, all within the past year.
Furthermore, McKesson holds a P/B ratio of -23.75 and its industry's price-to-book ratio is 6.44. MCK's P/B has been as high as -23.48, as low as -59.10, with a median of -33.92 over the past 12 months.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Cardinal Health and McKesson are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CAH and MCK feels like a great value stock at the moment.
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Is Cardinal Health (CAH) Stock Undervalued Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is Cardinal Health (CAH - Free Report) . CAH is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 13.35 right now. For comparison, its industry sports an average P/E of 18.19. Over the past 52 weeks, CAH's Forward P/E has been as high as 14.81 and as low as 9.20, with a median of 11.58.
We also note that CAH holds a PEG ratio of 1.15. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CAH's industry currently sports an average PEG of 1.62. CAH's PEG has been as high as 8.89 and as low as 1.11, with a median of 2, all within the past year.
Another great Medical - Dental Supplies stock you could consider is McKesson (MCK - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
McKesson is trading at a forward earnings multiple of 13.76 at the moment, with a PEG ratio of 1.33. This compares to its industry's average P/E of 18.19 and average PEG ratio of 1.62.
MCK's price-to-earnings ratio has been as high as 15.66 and as low as 11.69, with a median of 14.02, while its PEG ratio has been as high as 1.56 and as low as 0.99, with a median of 1.43, all within the past year.
Furthermore, McKesson holds a P/B ratio of -23.75 and its industry's price-to-book ratio is 6.44. MCK's P/B has been as high as -23.48, as low as -59.10, with a median of -33.92 over the past 12 months.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Cardinal Health and McKesson are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CAH and MCK feels like a great value stock at the moment.