Cardinal Health’s Stock Performance: A Closer Look Ahead of Earnings Release
In the latest trading session, Cardinal Health (CAH) closed at $112.32, registering a slight decline of -0.08% from the previous trading day’s close. This downturn outpaced the S&P 500’s daily loss of 0.18%. Notably, while the Dow Jones Industrial Average fell by 0.8%, the tech-heavy Nasdaq saw a modest increase of 0.27%.
Recent Stock Activity
Over the past month, Cardinal Health’s stock has risen by 0.51%. This is noteworthy as it contrasts with the Medical sector’s decline of 3.03% and falls behind the S&P 500’s growth of 4.46%.
Earnings Expectations and Forecasts
Investors are eagerly awaiting Cardinal Health’s upcoming earnings report, scheduled for November 1, 2024. Analysts predict earnings per share (EPS) of $1.64, down 5.2% from the same quarter a year ago. In terms of revenue, expectations are set at $51.26 billion, reflecting a decrease of 6.4% compared to the previous year.
For the full year, the Zacks Consensus Estimates indicate anticipated earnings of $7.61 per share and total revenue of $215.84 billion, representing small changes of +1.06% and -4.91%, respectively, from last year.
Analyst Sentiment
Recent revisions to analyst estimates for Cardinal Health deserve attention. Such adjustments can often indicate how analysts view the company’s outlook, with positive revisions generally signaling optimism about its future performance. Our research supports the idea that these estimate changes correlate strongly with short-term stock movements.
The Zacks Rank, which tracks these estimate revisions, provides a systematic rating model ranging from #1 (Strong Buy) to #5 (Strong Sell). Notably, stocks rated #1 have historically achieved an average annual return of +25% since 1988. Presently, Cardinal Health holds a Zacks Rank of #2 (Buy).
Valuation Metrics
Currently, Cardinal Health is trading at a Forward P/E ratio of 14.77, which is lower than the industry average of 17.06. Additionally, the company has a PEG ratio of 1.54, a metric that accounts for expected earnings growth alongside valuation. In comparison, the Medical – Dental Supplies industry had an average PEG ratio of 1.83 as of yesterday’s market close.
The Medical – Dental Supplies industry, a part of the broader Medical sector, holds a Zacks Industry Rank of 163, placing it in the bottom 36% of over 250 industries evaluated.
Understanding Industry Rankings
The Zacks Industry Rank assesses the strength of various industry groups through the average Zacks Rank of their respective stocks. Historically, industries in the top 50% have outperformed those in the bottom half by a factor of 2 to 1.
For the latest updates and insights into stock metrics, be sure to visit Zacks.com in the coming trading sessions.
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Cardinal Health, Inc. (CAH): Free Stock Analysis Report
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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
