Yahoo Finance Are You a Value Investor? This 1 Stock Could Be the Perfect Pick
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.
While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.
Why Investors Should Pay Attention to This Value Stock
Different than growth or momentum investors, value-focused investors are all about finding good stocks at good prices, and discovering which companies are trading under what their true value is before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to help pick out the most attractive and discounted stocks.
Cardinal Health (CAH)
Headquartered in Dublin, OH, Cardinal Health Inc. is a nation-wide drug distributor and provider of services to pharmacies, healthcare providers and manufacturers. The company has two reporting segments – Pharmaceutical and Medical.
CAH is a Zacks Rank #3 (Hold) stock, with a Value Style Score of A and VGM Score of A. Shares are currently trading at a forward P/E of 12.7X for the current fiscal year compared to the Medical - Dental Supplies industry's P/E of 17.8X. Additionally, CAH has a PEG Ratio of 1.1 and a Price/Cash Flow ratio of 11.1X. Value investors should also note CAH's Price/Sales ratio of 0.1X.
Many value investors pay close attention to a company's earnings as well. For CAH, two analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.03 to $7.35 per share for 2024. Per share CAH boasts an average earnings surprise of 12.9%.
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
