Cardinal Health (CAH) Laps the Stock Market: Here's Why

Cardinal Health (CAH) closed the most recent trading day at $161.89, moving +1.72% from the previous trading session. This change outpaced the S&P 500's 0.79% gain on the day. At the same time, the Dow added 1.01%, and the tech-heavy Nasdaq gained 1.15%. Prior to today's trading, shares of the prescription drug distributor had gained 6.85% outpaced the Medical sector's gain of 3.99% and the S&P 500's gain of 1.27%.The investment community will be closely monitoring the performance of Cardinal Health in its forthcoming earnings report. The company is scheduled to release its earnings on October 30, 2025. It is anticipated that the company will report an EPS of $2.21, marking a 17.55% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $59.05 billion, indicating a 12.96% growth compared to the corresponding quarter of the prior year. Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $9.45 per share and revenue of $249 billion. These totals would mark changes of +14.68% and +11.87%, respectively, from last year. Any recent changes to analyst estimates for Cardinal Health should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability. Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 past month, the Zacks Consensus EPS estimate has moved 0.02% lower. Currently, Cardinal Health is carrying a Zacks Rank of #3 (Hold). In terms of valuation, Cardinal Health is currently trading at a Forward P/E ratio of 16.85. This expresses a premium compared to the average Forward P/E of 13.51 of its industry. We can additionally observe that CAH currently boasts a PEG ratio of 1.35. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Medical - Dental Supplies industry held an average PEG ratio of 1.64. The Medical - Dental Supplies industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 98, finds itself in the top 40% echelons of all 250+ industries. The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. To follow CAH in the coming trading sessions, be sure to utilize Zacks.com. Zacks Names #1 Semiconductor StockThis under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Cardinal Health, Inc. (CAH): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks