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The most recent trading session ended with Cardinal Health (CAH) standing at $122.53, reflecting a +0.93% shift from the previouse trading day's closing. This move outpaced the S&P 500's daily gain of 0.16%. Elsewhere, the Dow saw an upswing of 0.25%, while the tech-heavy Nasdaq depreciated by 0.06%.
Shares of the prescription drug distributor have appreciated by 4.35% over the course of the past month, outperforming the Medical sector's loss of 5.31% and the S&P 500's loss of 2.7%.
Market participants will be closely following the financial results of Cardinal Health in its upcoming release. The company plans to announce its earnings on January 30, 2025. The company is predicted to post an EPS of $1.74, indicating a 4.4% decline compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $54.84 billion, indicating a 4.53% downward movement from the same quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $7.82 per share and a revenue of $219.02 billion, signifying shifts of +3.85% and -3.51%, respectively, from the last year.
Any recent changes to analyst estimates for Cardinal Health should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.06% higher. Currently, Cardinal Health is carrying a Zacks Rank of #2 (Buy).
Digging into valuation, Cardinal Health currently has a Forward P/E ratio of 15.66. This denotes a discount relative to the industry's average Forward P/E of 18.04.
Also, we should mention that CAH has a PEG ratio of 1.49. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Medical - Dental Supplies industry stood at 1.94 at the close of the market yesterday.