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Cardinal Health (CAH) Laps the Stock Market: Here's Why
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Cardinal Health (CAH - Free Report) ended the recent trading session at $208.48, demonstrating a +1.47% change from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily gain of 0.62%. Elsewhere, the Dow saw an upswing of 0.99%, while the tech-heavy Nasdaq appreciated by 0.65%.
The prescription drug distributor's shares have seen an increase of 3.3% over the last month, surpassing the Medical sector's loss of 1.22% and the S&P 500's gain of 0.59%.
Investors will be eagerly watching for the performance of Cardinal Health in its upcoming earnings disclosure. On that day, Cardinal Health is projected to report earnings of $2.31 per share, which would represent year-over-year growth of 19.69%. At the same time, our most recent consensus estimate is projecting a revenue of $64.07 billion, reflecting a 15.94% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $9.86 per share and revenue of $258.58 billion. These totals would mark changes of +19.66% and +16.18%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Cardinal Health. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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 last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Right now, Cardinal Health possesses a Zacks Rank of #2 (Buy).
Looking at its valuation, Cardinal Health is holding a Forward P/E ratio of 20.84. This represents a premium compared to its industry average Forward P/E of 18.37.
One should further note that CAH currently holds a PEG ratio of 1.5. 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 2.24.
The Medical - Dental Supplies industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 180, finds itself in the bottom 27% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Cardinal Health (CAH) Laps the Stock Market: Here's Why
Cardinal Health (CAH - Free Report) ended the recent trading session at $208.48, demonstrating a +1.47% change from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily gain of 0.62%. Elsewhere, the Dow saw an upswing of 0.99%, while the tech-heavy Nasdaq appreciated by 0.65%.
The prescription drug distributor's shares have seen an increase of 3.3% over the last month, surpassing the Medical sector's loss of 1.22% and the S&P 500's gain of 0.59%.
Investors will be eagerly watching for the performance of Cardinal Health in its upcoming earnings disclosure. On that day, Cardinal Health is projected to report earnings of $2.31 per share, which would represent year-over-year growth of 19.69%. At the same time, our most recent consensus estimate is projecting a revenue of $64.07 billion, reflecting a 15.94% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $9.86 per share and revenue of $258.58 billion. These totals would mark changes of +19.66% and +16.18%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Cardinal Health. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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 last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Right now, Cardinal Health possesses a Zacks Rank of #2 (Buy).
Looking at its valuation, Cardinal Health is holding a Forward P/E ratio of 20.84. This represents a premium compared to its industry average Forward P/E of 18.37.
One should further note that CAH currently holds a PEG ratio of 1.5. 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 2.24.
The Medical - Dental Supplies industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 180, finds itself in the bottom 27% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.