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Should Value Investors Buy Cardinal Health (CAH) Stock?
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is Cardinal Health (CAH - Free Report) . CAH is currently holding a Zacks Rank #2 (Buy) and a Value grade of A.
Investors will also notice that CAH has a PEG ratio of 1.24. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CAH's PEG compares to its industry's average PEG of 1.76. Over the last 12 months, CAH's PEG has been as high as 1.88 and as low as 1.22, with a median of 1.49.
Finally, we should also recognize that CAH has a P/CF ratio of 15.27. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 15.38. Over the past 52 weeks, CAH's P/CF has been as high as 17.47 and as low as 12.96, with a median of 15.12.
If you're looking for another solid Medical - Dental Supplies value stock, take a look at The Cooper Companies (COO - Free Report) . COO is a Zacks Rank of #2 (Buy) stock with a Value score of A.
Shares of The Cooper Companies currently hold a Forward P/E ratio of 15.59, and its PEG ratio is 1.67. In comparison, its industry sports average P/E and PEG ratios of 15.32 and 1.76.
Over the last 12 months, COO's P/E has been as high as 27.77, as low as 14.68, with a median of 19.67, and its PEG ratio has been as high as 2.45, as low as 1.46, with a median of 1.98.
The Cooper Companies also has a P/B ratio of 1.62 compared to its industry's price-to-book ratio of 4.56. Over the past year, its P/B ratio has been as high as 2.79, as low as 1.53, with a median of 2.02.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Cardinal Health and The Cooper Companies are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CAH and COO feels like a great value stock at the moment.
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Should Value Investors Buy Cardinal Health (CAH) Stock?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is Cardinal Health (CAH - Free Report) . CAH is currently holding a Zacks Rank #2 (Buy) and a Value grade of A.
Investors will also notice that CAH has a PEG ratio of 1.24. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CAH's PEG compares to its industry's average PEG of 1.76. Over the last 12 months, CAH's PEG has been as high as 1.88 and as low as 1.22, with a median of 1.49.
Finally, we should also recognize that CAH has a P/CF ratio of 15.27. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 15.38. Over the past 52 weeks, CAH's P/CF has been as high as 17.47 and as low as 12.96, with a median of 15.12.
If you're looking for another solid Medical - Dental Supplies value stock, take a look at The Cooper Companies (COO - Free Report) . COO is a Zacks Rank of #2 (Buy) stock with a Value score of A.
Shares of The Cooper Companies currently hold a Forward P/E ratio of 15.59, and its PEG ratio is 1.67. In comparison, its industry sports average P/E and PEG ratios of 15.32 and 1.76.
Over the last 12 months, COO's P/E has been as high as 27.77, as low as 14.68, with a median of 19.67, and its PEG ratio has been as high as 2.45, as low as 1.46, with a median of 1.98.
The Cooper Companies also has a P/B ratio of 1.62 compared to its industry's price-to-book ratio of 4.56. Over the past year, its P/B ratio has been as high as 2.79, as low as 1.53, with a median of 2.02.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Cardinal Health and The Cooper Companies are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CAH and COO feels like a great value stock at the moment.