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Cardinal Health (CAH) Flat As Market Gains: What You Should Know
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In the latest trading session, Cardinal Health (CAH - Free Report) closed at $76.52, marking no change from the previous day. This change lagged the S&P 500's daily gain of 0.34%. At the same time, the Dow added 0.64%, and the tech-heavy Nasdaq gained 8.98%.
Coming into today, shares of the prescription drug distributor had lost 2.58% in the past month. In that same time, the Medical sector lost 0.28%, while the S&P 500 gained 1%.
Cardinal Health will be looking to display strength as it nears its next earnings release, which is expected to be February 2, 2023. On that day, Cardinal Health is projected to report earnings of $1.13 per share, which would represent a year-over-year decline of 11.02%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $49.68 billion, up 9.29% from the year-ago period.
CAH's full-year Zacks Consensus Estimates are calling for earnings of $5.28 per share and revenue of $199.15 billion. These results would represent year-over-year changes of +4.35% and +9.81%, respectively.
Any recent changes to analyst estimates for Cardinal Health should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. The Zacks Consensus EPS estimate has moved 0.14% higher within the past month. Cardinal Health is currently sporting a Zacks Rank of #2 (Buy).
In terms of valuation, Cardinal Health is currently trading at a Forward P/E ratio of 14.49. This represents a discount compared to its industry's average Forward P/E of 20.06.
We can also see that CAH currently has a PEG ratio of 1.24. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Medical - Dental Supplies stocks are, on average, holding a PEG ratio of 2.22 based on yesterday's closing prices.
The Medical - Dental Supplies industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 172, which puts it in the bottom 32% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Cardinal Health (CAH) Flat As Market Gains: What You Should Know
In the latest trading session, Cardinal Health (CAH - Free Report) closed at $76.52, marking no change from the previous day. This change lagged the S&P 500's daily gain of 0.34%. At the same time, the Dow added 0.64%, and the tech-heavy Nasdaq gained 8.98%.
Coming into today, shares of the prescription drug distributor had lost 2.58% in the past month. In that same time, the Medical sector lost 0.28%, while the S&P 500 gained 1%.
Cardinal Health will be looking to display strength as it nears its next earnings release, which is expected to be February 2, 2023. On that day, Cardinal Health is projected to report earnings of $1.13 per share, which would represent a year-over-year decline of 11.02%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $49.68 billion, up 9.29% from the year-ago period.
CAH's full-year Zacks Consensus Estimates are calling for earnings of $5.28 per share and revenue of $199.15 billion. These results would represent year-over-year changes of +4.35% and +9.81%, respectively.
Any recent changes to analyst estimates for Cardinal Health should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. The Zacks Consensus EPS estimate has moved 0.14% higher within the past month. Cardinal Health is currently sporting a Zacks Rank of #2 (Buy).
In terms of valuation, Cardinal Health is currently trading at a Forward P/E ratio of 14.49. This represents a discount compared to its industry's average Forward P/E of 20.06.
We can also see that CAH currently has a PEG ratio of 1.24. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Medical - Dental Supplies stocks are, on average, holding a PEG ratio of 2.22 based on yesterday's closing prices.
The Medical - Dental Supplies industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 172, which puts it in the bottom 32% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.