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Cardinal Health (CAH) Stock Dips While Market Gains: Key Facts

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Cardinal Health (CAH - Free Report) closed the latest trading day at $111.92, indicating a -0.52% change from the previous session's end. The stock fell short of the S&P 500, which registered a gain of 0.77% for the day. Meanwhile, the Dow experienced a rise of 0.47%, and the technology-dominated Nasdaq saw an increase of 0.87%.

The prescription drug distributor's shares have seen a decrease of 0.58% over the last month, surpassing the Medical sector's loss of 3% and falling behind the S&P 500's gain of 4.87%.

Investors will be eagerly watching for the performance of Cardinal Health in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on November 1, 2024. It is anticipated that the company will report an EPS of $1.64, marking a 5.2% fall compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $51.26 billion, down 6.4% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates project earnings of $7.61 per share and a revenue of $215.84 billion, demonstrating changes of +1.06% and -4.91%, respectively, from the preceding year.

Any recent changes to analyst estimates for Cardinal Health should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Cardinal Health is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, Cardinal Health currently has a Forward P/E ratio of 14.78. This signifies a discount in comparison to the average Forward P/E of 16.55 for its industry.

It is also worth noting that CAH currently has a PEG ratio of 1.54. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Medical - Dental Supplies industry was having an average PEG ratio of 1.77.

The Medical - Dental Supplies industry is part of the Medical sector. This group has a Zacks Industry Rank of 186, putting it in the bottom 27% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow CAH in the coming trading sessions, be sure to utilize Zacks.com.


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