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Should Value Investors Buy Cardinal Health (CAH) Stock?
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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.
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.
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 #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 14.01, which compares to its industry's average of 19.10. Over the past 52 weeks, CAH's Forward P/E has been as high as 16.50 and as low as 12.54, with a median of 13.85.
We also note that CAH holds a PEG ratio of 0.98. 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 PEG compares to its industry's average PEG of 1.76. CAH's PEG has been as high as 1.25 and as low as 0.86, with a median of 0.97, all within the past year.
Finally, investors will want to recognize that CAH has a P/CF ratio of 20.26. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. CAH's P/CF compares to its industry's average P/CF of 21.28. Within the past 12 months, CAH's P/CF has been as high as 31.82 and as low as 17.08, with a median of 21.27.
These are only a few of the key metrics included in Cardinal Health's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, CAH looks like an impressive value stock at the moment.
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Should Value Investors Buy Cardinal Health (CAH) Stock?
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.
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.
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 #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 14.01, which compares to its industry's average of 19.10. Over the past 52 weeks, CAH's Forward P/E has been as high as 16.50 and as low as 12.54, with a median of 13.85.
We also note that CAH holds a PEG ratio of 0.98. 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 PEG compares to its industry's average PEG of 1.76. CAH's PEG has been as high as 1.25 and as low as 0.86, with a median of 0.97, all within the past year.
Finally, investors will want to recognize that CAH has a P/CF ratio of 20.26. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. CAH's P/CF compares to its industry's average P/CF of 21.28. Within the past 12 months, CAH's P/CF has been as high as 31.82 and as low as 17.08, with a median of 21.27.
These are only a few of the key metrics included in Cardinal Health's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, CAH looks like an impressive value stock at the moment.