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

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Cardinal Health (CAH - Free Report) closed at $154.46 in the latest trading session, marking a -2.52% move from the prior day. This move lagged the S&P 500's daily gain of 0.01%. Meanwhile, the Dow experienced a rise of 0.51%, and the technology-dominated Nasdaq saw a decrease of 0.28%.

Shares of the prescription drug distributor witnessed a gain of 6.11% over the previous month, beating the performance of the Medical sector with its gain of 4.67%, and the S&P 500's gain of 4.83%.

Market participants will be closely following the financial results of Cardinal Health in its upcoming release. The company plans to announce its earnings on October 30, 2025. The company is expected to report EPS of $2.22, up 18.09% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $59.05 billion, up 12.96% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates project earnings of $9.41 per share and a revenue of $249.31 billion, demonstrating changes of +14.2% and +12.01%, respectively, from the preceding year.

Any recent changes to analyst estimates for Cardinal Health should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Cardinal Health is currently sporting a Zacks Rank of #2 (Buy).

Digging into valuation, Cardinal Health currently has a Forward P/E ratio of 16.83. This represents a premium compared to its industry average Forward P/E of 14.11.

It's also important to note that CAH currently trades at a PEG ratio of 1.34. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Medical - Dental Supplies industry had an average PEG ratio of 1.59.

The Medical - Dental Supplies industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 63, finds itself in the top 26% echelons of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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