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Is Cardinal Health (CAH) a Great Value Stock Right Now?
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice 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 14.40. This compares to its industry's average Forward P/E of 17.29. Over the past year, CAH's Forward P/E has been as high as 15.59 and as low as 12.37, with a median of 14.08.
Investors will also notice that CAH has a PEG ratio of 1.41. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. CAH's PEG compares to its industry's average PEG of 1.97. Within the past year, CAH's PEG has been as high as 1.55 and as low as 0.86, with a median of 1.07.
Finally, investors will want to recognize that CAH has a P/CF ratio of 14.47. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. CAH's P/CF compares to its industry's average P/CF of 18.48. Over the past 52 weeks, CAH's P/CF has been as high as 29.98 and as low as 13.22, with a median of 18.31.
Investors could also keep in mind McKesson (MCK - Free Report) , an Medical - Dental Supplies stock with a Zacks Rank of # 1 (Strong Buy) and Value grade of A.
Shares of McKesson currently holds a Forward P/E ratio of 16.24, and its PEG ratio is 1.15. In comparison, its industry sports average P/E and PEG ratios of 17.29 and 1.97.
MCK's price-to-earnings ratio has been as high as 19.54 and as low as 14.23, with a median of 16.92, while its PEG ratio has been as high as 1.65 and as low as 1.06, with a median of 1.34, all within the past year.
McKesson also has a P/B ratio of -27.69 compared to its industry's price-to-book ratio of 4.56. Over the past year, its P/B ratio has been as high as -23.17, as low as -59.19, with a median of -42.46.
These are only a few of the key metrics included in Cardinal Health and McKesson strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, CAH and MCK look like an impressive value stock at the moment.
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Is Cardinal Health (CAH) a Great Value Stock Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice 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 14.40. This compares to its industry's average Forward P/E of 17.29. Over the past year, CAH's Forward P/E has been as high as 15.59 and as low as 12.37, with a median of 14.08.
Investors will also notice that CAH has a PEG ratio of 1.41. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. CAH's PEG compares to its industry's average PEG of 1.97. Within the past year, CAH's PEG has been as high as 1.55 and as low as 0.86, with a median of 1.07.
Finally, investors will want to recognize that CAH has a P/CF ratio of 14.47. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. CAH's P/CF compares to its industry's average P/CF of 18.48. Over the past 52 weeks, CAH's P/CF has been as high as 29.98 and as low as 13.22, with a median of 18.31.
Investors could also keep in mind McKesson (MCK - Free Report) , an Medical - Dental Supplies stock with a Zacks Rank of # 1 (Strong Buy) and Value grade of A.
Shares of McKesson currently holds a Forward P/E ratio of 16.24, and its PEG ratio is 1.15. In comparison, its industry sports average P/E and PEG ratios of 17.29 and 1.97.
MCK's price-to-earnings ratio has been as high as 19.54 and as low as 14.23, with a median of 16.92, while its PEG ratio has been as high as 1.65 and as low as 1.06, with a median of 1.34, all within the past year.
McKesson also has a P/B ratio of -27.69 compared to its industry's price-to-book ratio of 4.56. Over the past year, its P/B ratio has been as high as -23.17, as low as -59.19, with a median of -42.46.
These are only a few of the key metrics included in Cardinal Health and McKesson strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, CAH and MCK look like an impressive value stock at the moment.