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Why the Market Dipped But Cardinal Health (CAH) Gained Today

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Cardinal Health (CAH - Free Report) ended the recent trading session at $95.97, demonstrating a +0.59% swing from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily loss of 1.39%. Elsewhere, the Dow saw an upswing of 0.6%, while the tech-heavy Nasdaq depreciated by 2.77%.

Heading into today, shares of the prescription drug distributor had lost 8.34% over the past month, lagging the Medical sector's gain of 1.98% and the S&P 500's gain of 4.43% in that time.

Market participants will be closely following the financial results of Cardinal Health in its upcoming release. On that day, Cardinal Health is projected to report earnings of $1.72 per share, which would represent year-over-year growth of 10.97%. In the meantime, our current consensus estimate forecasts the revenue to be $58.71 billion, indicating a 9.83% growth compared to the corresponding quarter of the prior year.

Investors might also notice recent changes to analyst estimates for Cardinal Health. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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 has shifted 0.02% upward. Cardinal Health is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note Cardinal Health's current valuation metrics, including its Forward P/E ratio of 12.63. This valuation marks a discount compared to its industry's average Forward P/E of 18.1.

It is also worth noting that CAH currently has a PEG ratio of 1.05. 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 industry currently had an average PEG ratio of 2.02 as of yesterday's close.

The Medical - Dental Supplies industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 159, finds itself in the bottom 37% echelons of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.


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