Cardinal Health (CAH) closed at $51.87 in the latest trading session, marking a -0.27% move from the prior day. This change lagged the S&P 500's daily gain of 1.1%. Elsewhere, the Dow gained 1.18%, while the tech-heavy Nasdaq added 1.09%.
Investors will be hoping for strength from CAH as it approaches its next earnings release. The company is expected to report EPS of $0.89, down 19.82% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $37.04 billion, down 0.83% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.30 per share and revenue of $153.45 billion. These totals would mark changes of +0.38% and +5.44%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for CAH. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. CAH is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, CAH is currently trading at a Forward P/E ratio of 9.81. Its industry sports an average Forward P/E of 31.11, so we one might conclude that CAH is trading at a discount comparatively.
We can also see that CAH currently has a PEG ratio of 2.25. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Medical - Dental Supplies industry currently had an average PEG ratio of 3.42 as of yesterday's close.
The Medical - Dental Supplies industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 201, which puts it in the bottom 21% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Cardinal Health, Inc. (CAH) : Free Stock Analysis Report
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