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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 $237.92, demonstrating a +1.35% change from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily loss of 0.05%. At the same time, the Dow lost 0.09%, and the tech-heavy Nasdaq lost 0.24%.
The prescription drug distributor's stock has climbed by 17.46% in the past month, exceeding the Medical sector's gain of 4.42% and the S&P 500's loss of 1.42%.
The upcoming earnings release of Cardinal Health will be of great interest to investors. The company is forecasted to report an EPS of $2.41, showcasing a 15.87% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $65.61 billion, reflecting a 9.06% rise from the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $10.76 per share and a revenue of $256.24 billion, representing changes of +30.58% and +15.12%, respectively, from the prior year.
Any recent changes to analyst estimates for Cardinal Health should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. As of now, Cardinal Health holds a Zacks Rank of #2 (Buy).
From a valuation perspective, Cardinal Health is currently exchanging hands at a Forward P/E ratio of 21.81. This expresses a premium compared to the average Forward P/E of 16.16 of its industry.
It's also important to note that CAH currently trades at a PEG ratio of 1.28. 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. As the market closed yesterday, the Medical - Dental Supplies industry was having an average PEG ratio of 1.7.
The Medical - Dental Supplies industry is part of the Medical sector. This group has a Zacks Industry Rank of 83, putting it in the top 35% of all 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
View the Zacks #1 Rank List
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Why the Market Dipped But Cardinal Health (CAH) Gained Today
Cardinal Health (CAH - Free Report) ended the recent trading session at $237.92, demonstrating a +1.35% change from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily loss of 0.05%. At the same time, the Dow lost 0.09%, and the tech-heavy Nasdaq lost 0.24%.
The prescription drug distributor's stock has climbed by 17.46% in the past month, exceeding the Medical sector's gain of 4.42% and the S&P 500's loss of 1.42%.
The upcoming earnings release of Cardinal Health will be of great interest to investors. The company is forecasted to report an EPS of $2.41, showcasing a 15.87% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $65.61 billion, reflecting a 9.06% rise from the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $10.76 per share and a revenue of $256.24 billion, representing changes of +30.58% and +15.12%, respectively, from the prior year.
Any recent changes to analyst estimates for Cardinal Health should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. As of now, Cardinal Health holds a Zacks Rank of #2 (Buy).
From a valuation perspective, Cardinal Health is currently exchanging hands at a Forward P/E ratio of 21.81. This expresses a premium compared to the average Forward P/E of 16.16 of its industry.
It's also important to note that CAH currently trades at a PEG ratio of 1.28. 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. As the market closed yesterday, the Medical - Dental Supplies industry was having an average PEG ratio of 1.7.
The Medical - Dental Supplies industry is part of the Medical sector. This group has a Zacks Industry Rank of 83, putting it in the top 35% of all 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.