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Cardinal Health (CAH) Laps the Stock Market: Here's Why
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Cardinal Health (CAH - Free Report) ended the recent trading session at $253.71, demonstrating a +2.41% change from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily gain of 0.33%. Meanwhile, the Dow gained 1.08%, and the Nasdaq, a tech-heavy index, added 0.08%.
Shares of the prescription drug distributor witnessed a gain of 6.54% over the previous month, beating the performance of the Medical sector with its loss of 0.15%, and the S&P 500's gain of 1.41%.
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 November 5, 2026. In that report, analysts expect Cardinal Health to post earnings of $2.92 per share. This would mark year-over-year growth of 14.51%. Meanwhile, our latest consensus estimate is calling for revenue of $66.96 billion, up 4.6% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $12.55 per share and revenue of $266.02 billion, indicating changes of +11.46% and +4.63%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Cardinal Health. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. At present, Cardinal Health boasts a Zacks Rank of #2 (Buy).
From a valuation perspective, Cardinal Health is currently exchanging hands at a Forward P/E ratio of 19.75. For comparison, its industry has an average Forward P/E of 17.67, which means Cardinal Health is trading at a premium to the group.
We can additionally observe that CAH currently boasts a PEG ratio of 1.49. 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. The Medical - Dental Supplies was holding an average PEG ratio of 1.94 at yesterday's closing price.
The Medical - Dental Supplies industry is part of the Medical sector. With its current Zacks Industry Rank of 85, this industry ranks in the top 35% of all industries, numbering over 250.
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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
View the Zacks #1 Rank List
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Cardinal Health (CAH) Laps the Stock Market: Here's Why
Cardinal Health (CAH - Free Report) ended the recent trading session at $253.71, demonstrating a +2.41% change from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily gain of 0.33%. Meanwhile, the Dow gained 1.08%, and the Nasdaq, a tech-heavy index, added 0.08%.
Shares of the prescription drug distributor witnessed a gain of 6.54% over the previous month, beating the performance of the Medical sector with its loss of 0.15%, and the S&P 500's gain of 1.41%.
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 November 5, 2026. In that report, analysts expect Cardinal Health to post earnings of $2.92 per share. This would mark year-over-year growth of 14.51%. Meanwhile, our latest consensus estimate is calling for revenue of $66.96 billion, up 4.6% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $12.55 per share and revenue of $266.02 billion, indicating changes of +11.46% and +4.63%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Cardinal Health. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. At present, Cardinal Health boasts a Zacks Rank of #2 (Buy).
From a valuation perspective, Cardinal Health is currently exchanging hands at a Forward P/E ratio of 19.75. For comparison, its industry has an average Forward P/E of 17.67, which means Cardinal Health is trading at a premium to the group.
We can additionally observe that CAH currently boasts a PEG ratio of 1.49. 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. The Medical - Dental Supplies was holding an average PEG ratio of 1.94 at yesterday's closing price.
The Medical - Dental Supplies industry is part of the Medical sector. With its current Zacks Industry Rank of 85, this industry ranks in the top 35% of all industries, numbering over 250.
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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.