Back to top

Image: Bigstock

Cardinal Health (CAH) Rises Yet Lags Behind Market: Some Facts Worth Knowing

Read MoreHide Full Article

The most recent trading session ended with Cardinal Health (CAH - Free Report) standing at $118.83, reflecting a +0.41% shift from the previouse trading day's closing. This move lagged the S&P 500's daily gain of 1.1%. Meanwhile, the Dow gained 0.91%, and the Nasdaq, a tech-heavy index, added 1.35%.

Shares of the prescription drug distributor have depreciated by 2.81% over the course of the past month, outperforming the Medical sector's loss of 3.78% and lagging the S&P 500's gain of 0.22%.

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 January 30, 2025. On that day, Cardinal Health is projected to report earnings of $1.74 per share, which would represent a year-over-year decline of 4.4%. Alongside, our most recent consensus estimate is anticipating revenue of $54.84 billion, indicating a 4.53% downward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $7.82 per share and revenue of $219.02 billion, which would represent changes of +3.85% and -3.51%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Cardinal Health. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 has shifted 0.02% upward. At present, Cardinal Health boasts a Zacks Rank of #2 (Buy).

In the context of valuation, Cardinal Health is at present trading with a Forward P/E ratio of 15.14. This signifies a discount in comparison to the average Forward P/E of 17.62 for its industry.

It is also worth noting that CAH currently has a PEG ratio of 1.48. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Medical - Dental Supplies industry currently had an average PEG ratio of 2.11 as of yesterday's close.

The Medical - Dental Supplies industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 70, finds itself in the top 28% echelons of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Cardinal Health, Inc. (CAH) - free report >>

Published in