Cardinal Health (CAH) Ascends While Market Falls: Some Facts to Note

Cardinal Health (CAH) closed the most recent trading day at $233.01, moving +1.79% from the previous trading session. This change outpaced the S&P 500's 0.1% loss on the day. Meanwhile, the Dow gained 0.35%, and the Nasdaq, a tech-heavy index, lost 0.43%. Heading into today, shares of the prescription drug distributor had gained 14.24% over the past month, outpacing the Medical sector's gain of 1.97% and the S&P 500's loss of 1.34%.Investors will be eagerly watching for the performance of Cardinal Health in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $2.41, marking a 15.87% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $65.61 billion, reflecting a 9.06% rise from the equivalent quarter last year. Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $10.76 per share and revenue of $256.24 billion, indicating changes of +30.58% and +15.12%, respectively, compared to the previous year. Investors should also pay attention to any latest changes in analyst estimates for Cardinal Health. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability. Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system. The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Cardinal Health is holding a Zacks Rank of #3 (Hold) right now. With respect to valuation, Cardinal Health is currently being traded at a Forward P/E ratio of 21.27. This valuation marks a premium compared to its industry average Forward P/E of 15.58. We can also see that CAH currently has a PEG ratio of 1.25. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Medical - Dental Supplies industry stood at 1.66 at the close of the market yesterday. The Medical - Dental Supplies industry is part of the Medical sector. This group has a Zacks Industry Rank of 97, putting it in the top 40% of all 250+ industries. The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions. 7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.7% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>This article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks