In the latest trading session, Cardinal Health (CAH) closed at $161.98, marking a -1.47% move from the previous day. The stock's performance was behind the S&P 500's daily gain of 0.48%. Elsewhere, the Dow saw a downswing of 0.02%, while the tech-heavy Nasdaq appreciated by 0.94%.
Shares of the prescription drug distributor have appreciated by 5.74% over the course of the past month, outperforming the Medical sector's gain of 2.8%, and the S&P 500's gain of 5.13%.
Investors will be eagerly watching for the performance of Cardinal Health in its upcoming earnings disclosure. The company is forecasted to report an EPS of $2.02, showcasing a 9.78% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $60.65 billion, up 1.31% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $8.18 per share and revenue of $223.07 billion, indicating changes of +8.63% and 0%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for Cardinal Health. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 2.1% higher within the past month. Cardinal Health is currently a Zacks Rank #2 (Buy).
Investors should also note Cardinal Health's current valuation metrics, including its Forward P/E ratio of 17.89. Its industry sports an average Forward P/E of 17.95, so one might conclude that Cardinal Health is trading at a discount comparatively.
It's also important to note that CAH currently trades at a PEG ratio of 1.64. 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 1.68 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 23, finds itself in the top 10% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding 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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