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Cardinal Health (CAH) Stock Slides as Market Rises: Facts to Know Before You Trade
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In the latest trading session, Cardinal Health (CAH - Free Report) closed at $220.22, marking a -1.08% move from the previous day. This move lagged the S&P 500's daily gain of 0.51%. Meanwhile, the Dow experienced a rise of 0.93%, and the technology-dominated Nasdaq saw an increase of 0.48%.
The stock of prescription drug distributor has fallen by 5.32% in the past month, lagging the Medical sector's loss of 3.38% and the S&P 500's gain of 0.74%.
Market participants will be closely following the financial results of Cardinal Health in its upcoming release. The company's upcoming EPS is projected at $2.92, signifying a 14.51% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $66.96 billion, showing a 4.6% escalation compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $12.55 per share and a revenue of $266.02 billion, indicating changes of +11.46% and +4.63%, respectively, from the former year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Cardinal Health. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
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.
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 past month, the Zacks Consensus EPS estimate remained stagnant. Currently, Cardinal Health is carrying a Zacks Rank of #3 (Hold).
With respect to valuation, Cardinal Health is currently being traded at a Forward P/E ratio of 17.74. This represents a premium compared to its industry average Forward P/E of 16.94.
We can additionally observe that CAH currently boasts a PEG ratio of 1.34. 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 of the close of trade yesterday, the Medical - Dental Supplies industry held an average PEG ratio of 1.95.
The Medical - Dental Supplies industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 104, finds itself in the top 43% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow CAH in the coming trading sessions, be sure to utilize Zacks.com.
View the Zacks #1 Rank List
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Cardinal Health (CAH) Stock Slides as Market Rises: Facts to Know Before You Trade
In the latest trading session, Cardinal Health (CAH - Free Report) closed at $220.22, marking a -1.08% move from the previous day. This move lagged the S&P 500's daily gain of 0.51%. Meanwhile, the Dow experienced a rise of 0.93%, and the technology-dominated Nasdaq saw an increase of 0.48%.
The stock of prescription drug distributor has fallen by 5.32% in the past month, lagging the Medical sector's loss of 3.38% and the S&P 500's gain of 0.74%.
Market participants will be closely following the financial results of Cardinal Health in its upcoming release. The company's upcoming EPS is projected at $2.92, signifying a 14.51% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $66.96 billion, showing a 4.6% escalation compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $12.55 per share and a revenue of $266.02 billion, indicating changes of +11.46% and +4.63%, respectively, from the former year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Cardinal Health. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
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.
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 past month, the Zacks Consensus EPS estimate remained stagnant. Currently, Cardinal Health is carrying a Zacks Rank of #3 (Hold).
With respect to valuation, Cardinal Health is currently being traded at a Forward P/E ratio of 17.74. This represents a premium compared to its industry average Forward P/E of 16.94.
We can additionally observe that CAH currently boasts a PEG ratio of 1.34. 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 of the close of trade yesterday, the Medical - Dental Supplies industry held an average PEG ratio of 1.95.
The Medical - Dental Supplies industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 104, finds itself in the top 43% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow CAH in the coming trading sessions, be sure to utilize Zacks.com.