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Why the Market Dipped But Cardinal Health (CAH) Gained Today

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Cardinal Health (CAH - Free Report) ended the recent trading session at $208.26, demonstrating a +2.83% change from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily loss of 0.19%. Elsewhere, the Dow saw a downswing of 0.8%, while the tech-heavy Nasdaq depreciated by 0.1%.

The prescription drug distributor's shares have seen an increase of 1.28% over the last month, surpassing the Medical sector's gain of 0.48% and falling behind the S&P 500's gain of 2.26%.

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 February 5, 2026. The company's upcoming EPS is projected at $2.31, signifying a 19.69% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $64.07 billion, showing a 15.94% escalation compared to the year-ago quarter.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $9.86 per share and a revenue of $258.58 billion, representing changes of +19.66% and +16.18%, respectively, from the prior year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Cardinal Health. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. As of now, Cardinal Health holds a Zacks Rank of #2 (Buy).

With respect to valuation, Cardinal Health is currently being traded at a Forward P/E ratio of 20.54. This denotes a premium relative to the industry average Forward P/E of 18.48.

We can additionally observe that CAH currently boasts a PEG ratio of 1.47. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Medical - Dental Supplies industry stood at 2.24 at the close of the market yesterday.

The Medical - Dental Supplies industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 92, placing it within the top 38% 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.

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


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