Cardinal Health (CAH) closed the latest trading day at $128.88, indicating a -1.2% change from the previous session's end. The stock's performance was ahead of the S&P 500's daily loss of 3.46%. Meanwhile, the Dow experienced a drop of 2.5%, and the technology-dominated Nasdaq saw a decrease of 4.31%.
Shares of the prescription drug distributor have appreciated by 2.85% over the course of the past month, outperforming the Medical sector's loss of 10.85% and the S&P 500's loss of 5.27%.
Analysts and investors alike will be keeping a close eye on the performance of Cardinal Health in its upcoming earnings disclosure. The company's earnings report is set to go public on May 1, 2025. It is anticipated that the company will report an EPS of $2.15, marking a 3.37% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $55.03 billion, indicating a 0.21% upward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $7.94 per share and revenue of $222.62 billion, indicating changes of +5.44% and -1.92%, respectively, compared to the previous year.
Investors should also pay attention to any latest changes in analyst estimates for Cardinal Health. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate has moved 0.05% lower within the past month. Cardinal Health is holding a Zacks Rank of #3 (Hold) right now.
From a valuation perspective, Cardinal Health is currently exchanging hands at a Forward P/E ratio of 15.74. This denotes a premium relative to the industry's average Forward P/E of 15.09.
It's also important to note that CAH currently trades at a PEG ratio of 1.65. 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. The Medical - Dental Supplies industry currently had an average PEG ratio of 1.55 as of yesterday's close.
The Medical - Dental Supplies industry is part of the Medical sector. With its current Zacks Industry Rank of 75, this industry ranks in the top 31% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Cardinal Health, Inc. (CAH): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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