In the latest close session, Cardinal Health (CAH) was down 1.45% at $211.83. This move lagged the S&P 500's daily gain of 0.8%. On the other hand, the Dow registered a loss of 0.15%, and the technology-centric Nasdaq increased by 1.6%.
The prescription drug distributor's stock has dropped by 0.65% in the past month, exceeding the Medical sector's loss of 0.77% and lagging the S&P 500's gain of 5.15%.
The investment community will be paying close attention to the earnings performance of Cardinal Health in its upcoming release. The company is slated to reveal its earnings on April 30, 2026. The company is forecasted to report an EPS of $2.8, showcasing a 19.15% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $62.4 billion, reflecting a 13.7% rise from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $10.32 per share and a revenue of $259.25 billion, signifying shifts of +25.24% and +16.48%, respectively, from the last year.
Investors should also pay attention to any latest changes in analyst estimates for Cardinal Health. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.09% higher within the past month. As of now, Cardinal Health holds a Zacks Rank of #2 (Buy).
In terms of valuation, Cardinal Health is currently trading at a Forward P/E ratio of 20.82. This expresses a premium compared to the average Forward P/E of 16.49 of its industry.
It is also worth noting that CAH currently has a PEG ratio of 1.38. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Medical - Dental Supplies industry held an average PEG ratio of 1.82.
The Medical - Dental Supplies industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 82, finds itself in the top 34% echelons 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.
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Cardinal Health, Inc. (CAH): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).