Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.
Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.
Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to highlight the most attractive and discounted stocks.
Headquartered in Dublin, OH, Cardinal Health is a global healthcare services and products distributor to hospitals, healthcare providers, pharmacies, and manufacturers. The company operates under three segments: Pharmaceutical and Specialty Solutions, Global Medical Products and Distribution (GMPD), and Other.
CAH is a Zacks Rank #3 (Hold) stock, with a Value Style Score of B and VGM Score of A. Shares are currently trading at a forward P/E of 18.3X for the current fiscal year compared to the Medical - Dental Supplies industry's P/E of 18.3X. Additionally, CAH has a PEG Ratio of 1.9 and a Price/Cash Flow ratio of 13.8X. Value investors should also note CAH's Price/Sales ratio of 0.2X.
Value investors don't just pay attention to a company's valuation ratios; positive earnings play a crucial role, too. One analyst revised their earnings estimate upwards in the last 60 days for fiscal 2025. The Zacks Consensus Estimate has increased $0.03 to $7.97 per share. CAH has an average earnings surprise of 10.3%.
With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding CAH to their portfolios.
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Cardinal Health, Inc. (CAH) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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