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Cardinal Health (CAH) Stock Declines While Market Improves: Some Information for Investors

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The latest trading session saw Cardinal Health (CAH - Free Report) ending at $96.01, denoting a -0.9% adjustment from its last day's close. The stock trailed the S&P 500, which registered a daily gain of 0.07%. Elsewhere, the Dow saw a downswing of 0.13%, while the tech-heavy Nasdaq appreciated by 0.14%.

Shares of the prescription drug distributor witnessed a loss of 1.98% over the previous month, beating the performance of the Medical sector with its loss of 1.99% and underperforming the S&P 500's gain of 4.34%.

Analysts and investors alike will be keeping a close eye on the performance of Cardinal Health in its upcoming earnings disclosure. The company's upcoming EPS is projected at $1.72, signifying a 10.97% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $58.72 billion, indicating a 9.86% increase compared to the same quarter of the previous year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Cardinal Health. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Right now, Cardinal Health possesses a Zacks Rank of #4 (Sell).

In terms of valuation, Cardinal Health is presently being traded at a Forward P/E ratio of 12.83. This indicates a discount in contrast to its industry's Forward P/E of 18.02.

It is also worth noting that CAH currently has a PEG ratio of 1.07. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Medical - Dental Supplies industry held an average PEG ratio of 1.97.

The Medical - Dental Supplies industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 99, positioning it in the top 40% 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.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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