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Is Cardinal Health (CAH) Stock Undervalued Right Now?
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 stock to keep an eye on is Cardinal Health (CAH - Free Report) . CAH is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 13.14. This compares to its industry's average Forward P/E of 18.46. CAH's Forward P/E has been as high as 16.50 and as low as 11.49, with a median of 13.35, all within the past year.
CAH is also sporting a PEG ratio of 0.92. 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 PEG compares to its industry's average PEG of 1.69. CAH's PEG has been as high as 1.50 and as low as 0.88, with a median of 1.10, 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 currently trading with a Forward P/E ratio of 15.55 while its PEG ratio sits at 1.46. Both of the company's metrics compare favorably to its industry's average P/E of 18.46 and average PEG ratio of 1.69.
Over the last 12 months, MCK's P/E has been as high as 15.66, as low as 12.75, with a median of 14.53, and its PEG ratio has been as high as 1.56, as low as 1.23, with a median of 1.38.
McKesson sports a P/B ratio of -49.15 as well; this compares to its industry's price-to-book ratio of 4.72. In the past 52 weeks, MCK's P/B has been as high as -21.98, as low as -49.15, with a median of -39.43.
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?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 stock to keep an eye on is Cardinal Health (CAH - Free Report) . CAH is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 13.14. This compares to its industry's average Forward P/E of 18.46. CAH's Forward P/E has been as high as 16.50 and as low as 11.49, with a median of 13.35, all within the past year.
CAH is also sporting a PEG ratio of 0.92. 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 PEG compares to its industry's average PEG of 1.69. CAH's PEG has been as high as 1.50 and as low as 0.88, with a median of 1.10, 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 currently trading with a Forward P/E ratio of 15.55 while its PEG ratio sits at 1.46. Both of the company's metrics compare favorably to its industry's average P/E of 18.46 and average PEG ratio of 1.69.
Over the last 12 months, MCK's P/E has been as high as 15.66, as low as 12.75, with a median of 14.53, and its PEG ratio has been as high as 1.56, as low as 1.23, with a median of 1.38.
McKesson sports a P/B ratio of -49.15 as well; this compares to its industry's price-to-book ratio of 4.72. In the past 52 weeks, MCK's P/B has been as high as -21.98, as low as -49.15, with a median of -39.43.
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.