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Cardinal Health (CAH) is a Top-Ranked Value Stock: Should You Buy?

Zacks Equity Research
·2 min read

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.

While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.

Why Investors Should Pay Attention to This Value Stock

Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, the Value Style Score identifies the most attractive and most discounted stocks.

Cardinal Health (CAH)

Headquartered in Dublin, OH, Cardinal Health Inc. is a nation-wide drug distributor and provider of services to pharmacies, healthcare providers and manufacturers. The company has two reporting segments – Pharmaceutical and Medical.

CAH is a Zacks Rank #2 (Buy) stock, with a Value Style Score of A and VGM Score of A. Shares are currently trading at a forward P/E of 14.4X for the current fiscal year compared to the Medical - Dental Supplies industry's P/E of 21.1X. Additionally, CAH has a PEG Ratio of 1.2 and a Price/Cash Flow ratio of 9.9X. Value investors should also note CAH's Price/Sales ratio of 0.1X.

A company's earnings performance is important for value investors as well. For fiscal 2023, two analysts revised their earnings estimate higher in the last 60 days for CAH, while the Zacks Consensus Estimate has increased $0.03 to $5.32 per share. CAH also holds an average earnings surprise of 6.4%.

Investors should take the time to consider CAH for their portfolios due to its solid Zacks Ranks, notable earnings and valuation metrics, and impressive Value and VGM Style Scores.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Cardinal Health, Inc. (CAH) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

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