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Are Investors Undervaluing Cardinal Health (CAH) Right Now?
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 #1 (Strong Buy), as well as an A grade for Value. The stock holds a P/E ratio of 14.46, while its industry has an average P/E of 19.05. Over the past 52 weeks, CAH's Forward P/E has been as high as 16.50 and as low as 11.49, with a median of 13.58.
CAH is also sporting a PEG ratio of 1.02. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. CAH's industry currently sports an average PEG of 1.78. Over the last 12 months, CAH's PEG has been as high as 1.25 and as low as 0.86, with a median of 0.97.
Finally, our model also underscores that CAH has a P/CF ratio of 20.73. 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 20.96. Over the past 52 weeks, CAH's P/CF has been as high as 31.82 and as low as -34.38, with a median of 20.93.
These are just a handful of the figures considered in Cardinal Health's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that CAH is an impressive value stock right now.
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Are Investors Undervaluing Cardinal Health (CAH) Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 #1 (Strong Buy), as well as an A grade for Value. The stock holds a P/E ratio of 14.46, while its industry has an average P/E of 19.05. Over the past 52 weeks, CAH's Forward P/E has been as high as 16.50 and as low as 11.49, with a median of 13.58.
CAH is also sporting a PEG ratio of 1.02. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. CAH's industry currently sports an average PEG of 1.78. Over the last 12 months, CAH's PEG has been as high as 1.25 and as low as 0.86, with a median of 0.97.
Finally, our model also underscores that CAH has a P/CF ratio of 20.73. 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 20.96. Over the past 52 weeks, CAH's P/CF has been as high as 31.82 and as low as -34.38, with a median of 20.93.
These are just a handful of the figures considered in Cardinal Health's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that CAH is an impressive value stock right now.