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Why Cardinal Health (CAH) Might Surprise This Earnings Season
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Investors are always looking for stocks that are poised to beat at earnings season and Cardinal Health, Inc. (CAH - Free Report) may be one such company. The firm has earnings coming up pretty soon, and events are shaping up quite nicely for their report.
That is because Cardinal Health is seeing favorable earnings estimate revision activity as of late, which is generally a precursor to an earnings beat. After all, analysts raising estimates right before earnings—with the most up-to-date information possible—is a pretty good indicator of some favorable trends underneath the surface for CAH in this report.
In fact, the Most Accurate Estimate for the current quarter is currently at $1.47 cents per share for CAH, compared to a broader Zacks Consensus Estimate of $1.46 cents per share. This suggests that analysts have very recently bumped up their estimates for CAH, giving the stock a Zacks Earnings ESP of 0.68% heading into earnings season.
A positive reading for the Zacks Earnings ESP has proven to be very powerful in producing both positive surprises, and outperforming the market. Our recent 10 year backtest shows that stocks that have a positive Earnings ESP and a Zacks Rank #3 (Hold) or better show a positive surprise nearly 70% of the time, and have returned over 28% on average in annual returns (see more Top Earnings ESP stocks here).
Clearly, recent earnings estimate revisions suggest that good things are ahead for Cardinal Health, and that a beat might be in the cards for the upcoming report.
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Why Cardinal Health (CAH) Might Surprise This Earnings Season
Investors are always looking for stocks that are poised to beat at earnings season and Cardinal Health, Inc. (CAH - Free Report) may be one such company. The firm has earnings coming up pretty soon, and events are shaping up quite nicely for their report.
That is because Cardinal Health is seeing favorable earnings estimate revision activity as of late, which is generally a precursor to an earnings beat. After all, analysts raising estimates right before earnings—with the most up-to-date information possible—is a pretty good indicator of some favorable trends underneath the surface for CAH in this report.
In fact, the Most Accurate Estimate for the current quarter is currently at $1.47 cents per share for CAH, compared to a broader Zacks Consensus Estimate of $1.46 cents per share. This suggests that analysts have very recently bumped up their estimates for CAH, giving the stock a Zacks Earnings ESP of 0.68% heading into earnings season.
Cardinal Health, Inc. Price and EPS Surprise
Cardinal Health, Inc. Price and EPS Surprise | Cardinal Health, Inc. Quote
Why is this Important?
A positive reading for the Zacks Earnings ESP has proven to be very powerful in producing both positive surprises, and outperforming the market. Our recent 10 year backtest shows that stocks that have a positive Earnings ESP and a Zacks Rank #3 (Hold) or better show a positive surprise nearly 70% of the time, and have returned over 28% on average in annual returns (see more Top Earnings ESP stocks here).
Given that CAH has a Zacks Rank #3 and an ESP in positive territory, investors might want to consider this stock ahead of earnings. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Clearly, recent earnings estimate revisions suggest that good things are ahead for Cardinal Health, and that a beat might be in the cards for the upcoming report.
Looking for Ideas with Even Greater Upside?
Most of Zacks’ investment ideas are short-term, directly based on our proven 1 to 3 month indicator. In addition, I invite you to consider our long-term opportunities. These rare trades look to start fast with strong Zacks Ranks, but carry through with double and triple-digit profit potential. Starting now, you can look inside our home run, value, and stocks under $10 portfolios, plus more. Click here for a peek at this private information>>