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Are Investors Undervaluing Cardinal Health (CAH) Right Now?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company to watch right now is Cardinal Health (CAH - Free Report) . CAH is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 14.62. This compares to its industry's average Forward P/E of 17.05. Over the past year, CAH's Forward P/E has been as high as 14.91 and as low as 12.37, with a median of 13.92.
We also note that CAH holds a PEG ratio of 1.52. 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. CAH's industry currently sports an average PEG of 1.77. Within the past year, CAH's PEG has been as high as 1.55 and as low as 0.86, with a median of 0.99.
Finally, investors will want to recognize that CAH has a P/CF ratio of 17.89. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 18.85. Over the past year, CAH's P/CF has been as high as 29.43 and as low as 14.64, with a median of 18.49.
These are only a few of the key metrics included in Cardinal Health's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, CAH looks like an impressive value stock at the moment.
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Are Investors Undervaluing Cardinal Health (CAH) Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company to watch right now is Cardinal Health (CAH - Free Report) . CAH is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 14.62. This compares to its industry's average Forward P/E of 17.05. Over the past year, CAH's Forward P/E has been as high as 14.91 and as low as 12.37, with a median of 13.92.
We also note that CAH holds a PEG ratio of 1.52. 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. CAH's industry currently sports an average PEG of 1.77. Within the past year, CAH's PEG has been as high as 1.55 and as low as 0.86, with a median of 0.99.
Finally, investors will want to recognize that CAH has a P/CF ratio of 17.89. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 18.85. Over the past year, CAH's P/CF has been as high as 29.43 and as low as 14.64, with a median of 18.49.
These are only a few of the key metrics included in Cardinal Health's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, CAH looks like an impressive value stock at the moment.