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Here's Why Cardinal Health (CAH) Gained But Lagged the Market Today
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Cardinal Health (CAH - Free Report) closed the latest trading day at $113.28, indicating a +0.1% change from the previous session's end. The stock fell short of the S&P 500, which registered a gain of 0.13% for the day. Elsewhere, the Dow saw an upswing of 0.55%, while the tech-heavy Nasdaq depreciated by 0.52%.
The prescription drug distributor's shares have seen an increase of 3.02% over the last month, not keeping up with the Medical sector's gain of 3.34% and the S&P 500's gain of 3.67%.
The investment community will be closely monitoring the performance of Cardinal Health in its forthcoming earnings report. In that report, analysts expect Cardinal Health to post earnings of $1.64 per share. This would mark a year-over-year decline of 5.2%. At the same time, our most recent consensus estimate is projecting a revenue of $51.26 billion, reflecting a 6.4% fall from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $7.61 per share and revenue of $215.84 billion. These totals would mark changes of +1.06% and -4.91%, respectively, from last year.
Investors should also note any 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.06% upward. Cardinal Health currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Cardinal Health is holding a Forward P/E ratio of 14.87. This denotes a discount relative to the industry's average Forward P/E of 18.39.
Investors should also note that CAH has a PEG ratio of 1.55 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. By the end of yesterday's trading, the Medical - Dental Supplies industry had an average PEG ratio of 1.91.
The Medical - Dental Supplies industry is part of the Medical sector. This group has a Zacks Industry Rank of 160, putting it in the bottom 37% 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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Here's Why Cardinal Health (CAH) Gained But Lagged the Market Today
Cardinal Health (CAH - Free Report) closed the latest trading day at $113.28, indicating a +0.1% change from the previous session's end. The stock fell short of the S&P 500, which registered a gain of 0.13% for the day. Elsewhere, the Dow saw an upswing of 0.55%, while the tech-heavy Nasdaq depreciated by 0.52%.
The prescription drug distributor's shares have seen an increase of 3.02% over the last month, not keeping up with the Medical sector's gain of 3.34% and the S&P 500's gain of 3.67%.
The investment community will be closely monitoring the performance of Cardinal Health in its forthcoming earnings report. In that report, analysts expect Cardinal Health to post earnings of $1.64 per share. This would mark a year-over-year decline of 5.2%. At the same time, our most recent consensus estimate is projecting a revenue of $51.26 billion, reflecting a 6.4% fall from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $7.61 per share and revenue of $215.84 billion. These totals would mark changes of +1.06% and -4.91%, respectively, from last year.
Investors should also note any 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.06% upward. Cardinal Health currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Cardinal Health is holding a Forward P/E ratio of 14.87. This denotes a discount relative to the industry's average Forward P/E of 18.39.
Investors should also note that CAH has a PEG ratio of 1.55 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. By the end of yesterday's trading, the Medical - Dental Supplies industry had an average PEG ratio of 1.91.
The Medical - Dental Supplies industry is part of the Medical sector. This group has a Zacks Industry Rank of 160, putting it in the bottom 37% 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.