Cardinal Health (CAH) Outperforms Broader Market: What You Need to Know

Core Viewpoint - Cardinal Health's stock performance has been mixed, with a recent increase but a decline over the past month, and upcoming earnings are anticipated to show significant growth in both EPS and revenue [1][2][3]. Company Performance - Cardinal Health's stock rose by 1.93% to $202.95, outperforming the S&P 500's gain of 0.88% [1] - Over the past month, the stock has decreased by 4.23%, underperforming the Medical sector's gain of 1.2% and the S&P 500's gain of 2.48% [1]. Earnings Forecast - The upcoming earnings report is expected to show an EPS of $2.31, reflecting a 19.69% increase from the same quarter last year [2]. - Revenue is forecasted to reach $64.07 billion, indicating a 15.94% rise compared to the previous year [2]. Annual Estimates - For the annual period, earnings are projected at $9.86 per share, with revenue expected to be $258.58 billion, representing increases of 19.66% and 16.18% respectively from last year [3]. Analyst Estimates - Recent modifications to analyst estimates for Cardinal Health are crucial, as positive revisions indicate optimism regarding business and profitability [3]. - The Zacks Consensus EPS estimate has seen a slight downward shift of 0.17% over the past month, and Cardinal Health currently holds a Zacks Rank of 3 (Hold) [5]. Valuation Metrics - Cardinal Health has a Forward P/E ratio of 20.19, which is higher than the industry average of 17.72 [6]. - The company’s PEG ratio stands at 1.45, compared to the Medical - Dental Supplies industry's average PEG ratio of 2.36 [6]. Industry Context - The Medical - Dental Supplies industry, part of the Medical sector, has a Zacks Industry Rank of 151, placing it in the bottom 39% of over 250 industries [7]. - Historically, industries in the top 50% outperform those in the bottom half by a factor of 2 to 1 [7].