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Is Cardinal Health (CAH) Stock Outpacing Its Medical Peers This Year?

Zacks Equity Research
Newpark (NR) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.

For those looking to find strong Medical stocks, it is prudent to search for companies in the group that are outperforming their peers. Cardinal Health (CAH) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? One simple way to answer this question is to take a look at the year-to-date performance of CAH and the rest of the Medical group's stocks.

Cardinal Health is one of 833 companies in the Medical group. The Medical group currently sits at #2 within the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. CAH is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for CAH's full-year earnings has moved 1.22% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Our latest available data shows that CAH has returned about 13.34% since the start of the calendar year. In comparison, Medical companies have returned an average of 10.46%. As we can see, Cardinal Health is performing better than its sector in the calendar year.

To break things down more, CAH belongs to the Medical - Dental Supplies industry, a group that includes 20 individual companies and currently sits at #57 in the Zacks Industry Rank. On average, stocks in this group have gained 13.44% this year, meaning that CAH is slightly underperforming its industry in terms of year-to-date returns.

Investors with an interest in Medical stocks should continue to track CAH. The stock will be looking to continue its solid performance.


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