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Here's Why Cardinal Health (CAH) Fell More Than Broader Market
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Cardinal Health (CAH - Free Report) closed the most recent trading day at $109.47, moving -0.41% from the previous trading session. This change lagged the S&P 500's 0.04% loss on the day. Meanwhile, the Dow lost 0.03%, and the Nasdaq, a tech-heavy index, added 0.03%.
Heading into today, shares of the prescription drug distributor had lost 4.56% over the past month, lagging the Medical sector's loss of 0.6% and the S&P 500's gain of 2.57% in that time.
The investment community will be closely monitoring the performance of Cardinal Health in its forthcoming earnings report. The company is scheduled to release its earnings on May 2, 2024. The company's upcoming EPS is projected at $1.96, signifying a 12.64% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $55.82 billion, indicating a 10.56% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $7.28 per share and revenue of $226.9 billion, which would represent changes of +25.73% and +10.68%, respectively, from the prior year.
Any recent changes to analyst estimates for Cardinal Health should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Right now, Cardinal Health possesses a Zacks Rank of #2 (Buy).
In the context of valuation, Cardinal Health is at present trading with a Forward P/E ratio of 15.09. This represents a discount compared to its industry's average Forward P/E of 18.49.
One should further note that CAH currently holds a PEG ratio of 1.06. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Medical - Dental Supplies industry was having an average PEG ratio of 1.8.
The Medical - Dental Supplies industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 81, placing it within the top 33% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Here's Why Cardinal Health (CAH) Fell More Than Broader Market
Cardinal Health (CAH - Free Report) closed the most recent trading day at $109.47, moving -0.41% from the previous trading session. This change lagged the S&P 500's 0.04% loss on the day. Meanwhile, the Dow lost 0.03%, and the Nasdaq, a tech-heavy index, added 0.03%.
Heading into today, shares of the prescription drug distributor had lost 4.56% over the past month, lagging the Medical sector's loss of 0.6% and the S&P 500's gain of 2.57% in that time.
The investment community will be closely monitoring the performance of Cardinal Health in its forthcoming earnings report. The company is scheduled to release its earnings on May 2, 2024. The company's upcoming EPS is projected at $1.96, signifying a 12.64% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $55.82 billion, indicating a 10.56% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $7.28 per share and revenue of $226.9 billion, which would represent changes of +25.73% and +10.68%, respectively, from the prior year.
Any recent changes to analyst estimates for Cardinal Health should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Right now, Cardinal Health possesses a Zacks Rank of #2 (Buy).
In the context of valuation, Cardinal Health is at present trading with a Forward P/E ratio of 15.09. This represents a discount compared to its industry's average Forward P/E of 18.49.
One should further note that CAH currently holds a PEG ratio of 1.06. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Medical - Dental Supplies industry was having an average PEG ratio of 1.8.
The Medical - Dental Supplies industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 81, placing it within the top 33% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.