In the latest trading session, Cardinal Health (CAH) closed at $161.98, marking a -1.47% move from the previous day. The stock's performance was behind the S&P 500's daily gain of 0.48%. Elsewhere, the Dow saw a downswing of 0.02%, while the tech-heavy Nasdaq appreciated by 0.94%.
Shares of the prescription drug distributor have appreciated by 5.74% over the course of the past month, outperforming the Medical sector's gain of 2.8%, and the S&P 500's gain of 5.13%.
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Investors will be eagerly watching for the performance of Cardinal Health in its upcoming earnings disclosure. The company is forecasted to report an EPS of $2.02, showcasing a 9.78% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $60.65 billion, up 1.31% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $8.18 per share and revenue of $223.07 billion, indicating changes of +8.63% and 0%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for Cardinal Health. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 2.1% higher within the past month. Cardinal Health is currently a Zacks Rank #2 (Buy).
Investors should also note Cardinal Health's current valuation metrics, including its Forward P/E ratio of 17.89. Its industry sports an average Forward P/E of 17.95, so one might conclude that Cardinal Health is trading at a discount comparatively.
It's also important to note that CAH currently trades at a PEG ratio of 1.64. 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 1.68 as of yesterday's close.
