Cardinal Health (CAH) is a Top-Ranked Growth Stock: Should You Buy?

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market engagement and confidence [1] - The Zacks Style Scores are designed to help investors identify stocks with the highest potential to outperform the market in the short term [2] Zacks Style Scores Overview - The Style Scores categorize stocks into four types: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5][6] - Value Score emphasizes finding undervalued stocks based on financial ratios [3] - Growth Score assesses a company's future earnings and financial health to identify sustainable growth opportunities [4] - Momentum Score capitalizes on price trends and earnings outlook changes to identify favorable buying opportunities [5] - VGM Score combines the three styles to highlight stocks with the best overall potential [6] Zacks Rank and Performance - The Zacks Rank is a proprietary model that uses earnings estimate revisions to guide investment decisions [7] - Stocks rated 1 (Strong Buy) have historically delivered an average annual return of +23.93% since 1988, significantly outperforming the S&P 500 [8] - Investors are encouraged to focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal returns [10] Company Spotlight: Cardinal Health (CAH) - Cardinal Health is a major player in healthcare services, serving nearly 90% of U.S. hospitals and managing over 43,000 pharmaceutical shipments daily [12] - The company operates in various segments, including Pharmaceutical & Specialty Solutions and Global Medical Products & Distribution [12] - Cardinal Health holds a Zacks Rank of 2 (Buy) and a VGM Score of A, indicating strong growth potential [13] - The company is projected to achieve year-over-year earnings growth of 18.9% for the current fiscal year, with upward revisions in earnings estimates [13][14]