In the latest trading session, Cardinal Health (CAH) closed at $240.49, marking a -2.71% move from the previous day. This move lagged the S&P 500's daily loss of 0.58%. On the other hand, the Dow registered a loss of 1.18%, and the technology-centric Nasdaq decreased by 0.32%.
The stock of prescription drug distributor has risen by 4.22% in the past month, leading the Medical sector's gain of 2.73% and the S&P 500's loss of 0.36%.
The investment community will be paying close attention to the earnings performance of Cardinal Health in its upcoming release. It is anticipated that the company will report an EPS of $2.92, marking a 14.51% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $66.96 billion, up 4.6% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $12.55 per share and a revenue of $266.02 billion, indicating changes of +11.46% and +4.63%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for Cardinal Health. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 4.23% higher. Cardinal Health presently features a Zacks Rank of #3 (Hold).
Digging into valuation, Cardinal Health currently has a Forward P/E ratio of 19.7. This indicates a premium in contrast to its industry's Forward P/E of 18.24.
One should further note that CAH currently holds a PEG ratio of 1.49. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Medical - Dental Supplies industry stood at 1.82 at the close of the market yesterday.
The Medical - Dental Supplies industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 75, placing it within the top 31% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners UpWant 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
This article originally published on Zacks Investment Research (zacks.com).