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Cardinal Health (CAH) Gains As Market Dips: What You Should Know
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Cardinal Health (CAH - Free Report) closed the most recent trading day at $76.47, moving +0.07% from the previous trading session. This move outpaced the S&P 500's daily loss of 1.56%. Meanwhile, the Dow lost 1.81%, and the Nasdaq, a tech-heavy index, lost 4.66%.
Heading into today, shares of the prescription drug distributor had lost 3.97% over the past month, lagging the Medical sector's gain of 0.86% and the S&P 500's gain of 3.82% 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. The company is expected to report EPS of $1.13, down 11.02% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $49.88 billion, up 9.74% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.28 per share and revenue of $199.58 billion. These totals would mark changes of +4.35% and +10.05%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Cardinal Health. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.14% higher within the past month. Cardinal Health currently has a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Cardinal Health has a Forward P/E ratio of 14.47 right now. Its industry sports an average Forward P/E of 20.59, so we one might conclude that Cardinal Health is trading at a discount comparatively.
We can also see that CAH currently has a PEG ratio of 1.24. 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. CAH's industry had an average PEG ratio of 2.25 as of yesterday's close.
The Medical - Dental Supplies industry is part of the Medical sector. This group has a Zacks Industry Rank of 70, putting it in the top 28% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Cardinal Health (CAH) Gains As Market Dips: What You Should Know
Cardinal Health (CAH - Free Report) closed the most recent trading day at $76.47, moving +0.07% from the previous trading session. This move outpaced the S&P 500's daily loss of 1.56%. Meanwhile, the Dow lost 1.81%, and the Nasdaq, a tech-heavy index, lost 4.66%.
Heading into today, shares of the prescription drug distributor had lost 3.97% over the past month, lagging the Medical sector's gain of 0.86% and the S&P 500's gain of 3.82% 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. The company is expected to report EPS of $1.13, down 11.02% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $49.88 billion, up 9.74% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.28 per share and revenue of $199.58 billion. These totals would mark changes of +4.35% and +10.05%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Cardinal Health. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.14% higher within the past month. Cardinal Health currently has a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Cardinal Health has a Forward P/E ratio of 14.47 right now. Its industry sports an average Forward P/E of 20.59, so we one might conclude that Cardinal Health is trading at a discount comparatively.
We can also see that CAH currently has a PEG ratio of 1.24. 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. CAH's industry had an average PEG ratio of 2.25 as of yesterday's close.
The Medical - Dental Supplies industry is part of the Medical sector. This group has a Zacks Industry Rank of 70, putting it in the top 28% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.