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Is Cardinal Health (CAH) Stock Undervalued Right Now?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company value investors might notice is Cardinal Health (CAH - Free Report) . CAH is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 13.71, while its industry has an average P/E of 18.67. Over the last 12 months, CAH's Forward P/E has been as high as 16.50 and as low as 11.49, with a median of 13.47.
Investors should also note that CAH holds a PEG ratio of 0.89. 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 PEG compares to its industry's average PEG of 1.72. Within the past year, CAH's PEG has been as high as 1.25 and as low as 0.88, with a median of 1.01.
Finally, investors should note that CAH has a P/CF ratio of 19.31. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. CAH's P/CF compares to its industry's average P/CF of 20.56. Over the past 52 weeks, CAH's P/CF has been as high as 31.82 and as low as -35.95, with a median of 20.93.
If you're looking for another solid Medical - Dental Supplies value stock, take a look at McKesson (MCK - Free Report) . MCK is a # 2 (Buy) stock with a Value score of A.
Shares of McKesson are currently trading at a forward earnings multiple of 16.63 and a PEG ratio of 1.56 compared to its industry's P/E and PEG ratios of 18.67 and 1.72, respectively.
MCK's price-to-earnings ratio has been as high as 16.93 and as low as 12.75, with a median of 14.93, while its PEG ratio has been as high as 1.62 and as low as 1.23, with a median of 1.40, all within the past year.
McKesson also has a P/B ratio of -39.51 compared to its industry's price-to-book ratio of 4.97. Over the past year, its P/B ratio has been as high as -21.98, as low as -48.57, with a median of -40.31.
These are only a few of the key metrics included in Cardinal Health and McKesson strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, CAH and MCK look like an impressive value stock at the moment.
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Is Cardinal Health (CAH) Stock Undervalued Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company value investors might notice is Cardinal Health (CAH - Free Report) . CAH is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 13.71, while its industry has an average P/E of 18.67. Over the last 12 months, CAH's Forward P/E has been as high as 16.50 and as low as 11.49, with a median of 13.47.
Investors should also note that CAH holds a PEG ratio of 0.89. 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 PEG compares to its industry's average PEG of 1.72. Within the past year, CAH's PEG has been as high as 1.25 and as low as 0.88, with a median of 1.01.
Finally, investors should note that CAH has a P/CF ratio of 19.31. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. CAH's P/CF compares to its industry's average P/CF of 20.56. Over the past 52 weeks, CAH's P/CF has been as high as 31.82 and as low as -35.95, with a median of 20.93.
If you're looking for another solid Medical - Dental Supplies value stock, take a look at McKesson (MCK - Free Report) . MCK is a # 2 (Buy) stock with a Value score of A.
Shares of McKesson are currently trading at a forward earnings multiple of 16.63 and a PEG ratio of 1.56 compared to its industry's P/E and PEG ratios of 18.67 and 1.72, respectively.
MCK's price-to-earnings ratio has been as high as 16.93 and as low as 12.75, with a median of 14.93, while its PEG ratio has been as high as 1.62 and as low as 1.23, with a median of 1.40, all within the past year.
McKesson also has a P/B ratio of -39.51 compared to its industry's price-to-book ratio of 4.97. Over the past year, its P/B ratio has been as high as -21.98, as low as -48.57, with a median of -40.31.
These are only a few of the key metrics included in Cardinal Health and McKesson strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, CAH and MCK look like an impressive value stock at the moment.