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Cardinal Health (CAH) Declines More Than Market: Some Information for Investors
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In the latest close session, Cardinal Health (CAH - Free Report) was down 1.07% at $237.15. The stock's change was less than the S&P 500's daily loss of 0.28%. Elsewhere, the Dow saw a downswing of 1.09%, while the tech-heavy Nasdaq appreciated by 0.2%.
The stock of prescription drug distributor has risen by 12.72% in the past month, leading the Medical sector's gain of 7.8% and the S&P 500's gain of 1.64%.
The investment community will be paying close attention to the earnings performance of Cardinal Health in its upcoming release. It is anticipated that the company will report an EPS of $2.41, marking a 15.87% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $65.61 billion, up 9.06% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $10.76 per share and revenue of $256.24 billion, which would represent changes of +30.58% and +15.12%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Cardinal Health. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Cardinal Health currently has a Zacks Rank of #3 (Hold).
Looking at valuation, Cardinal Health is presently trading at a Forward P/E ratio of 20.01. For comparison, its industry has an average Forward P/E of 17.04, which means Cardinal Health is trading at a premium to the group.
Investors should also note that CAH has a PEG ratio of 1.18 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Medical - Dental Supplies industry was having an average PEG ratio of 1.88.
The Medical - Dental Supplies industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 81, positioning it in the top 33% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
View the Zacks #1 Rank List
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Cardinal Health (CAH) Declines More Than Market: Some Information for Investors
In the latest close session, Cardinal Health (CAH - Free Report) was down 1.07% at $237.15. The stock's change was less than the S&P 500's daily loss of 0.28%. Elsewhere, the Dow saw a downswing of 1.09%, while the tech-heavy Nasdaq appreciated by 0.2%.
The stock of prescription drug distributor has risen by 12.72% in the past month, leading the Medical sector's gain of 7.8% and the S&P 500's gain of 1.64%.
The investment community will be paying close attention to the earnings performance of Cardinal Health in its upcoming release. It is anticipated that the company will report an EPS of $2.41, marking a 15.87% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $65.61 billion, up 9.06% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $10.76 per share and revenue of $256.24 billion, which would represent changes of +30.58% and +15.12%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Cardinal Health. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Cardinal Health currently has a Zacks Rank of #3 (Hold).
Looking at valuation, Cardinal Health is presently trading at a Forward P/E ratio of 20.01. For comparison, its industry has an average Forward P/E of 17.04, which means Cardinal Health is trading at a premium to the group.
Investors should also note that CAH has a PEG ratio of 1.18 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Medical - Dental Supplies industry was having an average PEG ratio of 1.88.
The Medical - Dental Supplies industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 81, positioning it in the top 33% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.