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The latest trading session saw Cardinal Health (CAH) ending at $137.09, denoting a -1.14% adjustment from its last day's close. The stock exceeded the S&P 500, which registered a loss of 4.84% for the day. Meanwhile, the Dow lost 3.98%, and the Nasdaq, a tech-heavy index, lost 5.97%.
The prescription drug distributor's shares have seen an increase of 8.83% over the last month, surpassing the Medical sector's loss of 4.6% and the S&P 500's loss of 4.7%.
Investors will be eagerly watching for the performance of Cardinal Health in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on May 1, 2025. In that report, analysts expect Cardinal Health to post earnings of $2.15 per share. This would mark year-over-year growth of 3.37%. Meanwhile, our latest consensus estimate is calling for revenue of $55.03 billion, up 0.21% from the prior-year quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $7.94 per share and a revenue of $222.62 billion, representing changes of +5.44% and -1.92%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Cardinal Health. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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, 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. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Cardinal Health is currently a Zacks Rank #2 (Buy).
From a valuation perspective, Cardinal Health is currently exchanging hands at a Forward P/E ratio of 17.46. Its industry sports an average Forward P/E of 16.94, so one might conclude that Cardinal Health is trading at a premium comparatively.
We can also see that CAH currently has a PEG ratio of 1.83. 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 had an average PEG ratio of 1.8 as trading concluded yesterday.