Is Now the Time for Value Investors to Buy CAH Stock?

Although the established Zacks Rank focuses on earnings forecasts and changes in those projections to identify promising stocks, we understand that investors often create their personal approaches. Keeping this in mind, we continuously examine value, growth, and momentum patterns to uncover outstanding businesses.

Among these, maybe none is as widely favored as value investing, a method that has demonstrated effectiveness across various market conditions. Investors who follow this approach rely on established indicators and thorough financial analysis to identify businesses they think are trading below their true worth.

Fortunately, Zacks has created its own Style Scores methodology to identify stocks possessing particular characteristics. Investors focusing on value opportunities may pay attention to the system's "Value" section. Securities that receive top ratings in the Value category along with strong Zacks Ranks represent some of the most promising value stocks currently available.

Many investors are keeping an eye on Cardinal Health (CAH) at this moment. CAH has a Zacks Rank of 2 (Buy), along with a Value rating of A.

Investors should also be aware that CAH has a PEG ratio of 1.61. This metric is comparable to the standard P/E ratio but includes an assessment of a company’s projected earnings growth. The PEG for CAH is lower than the sector's typical PEG of 1.75. Over the last year, CAH's PEG reached a peak of 1.88 and dropped to a minimum of 1.03, with a midpoint value of 1.49.

Ultimately, investors should take note that CAH has a price-to-cash-flow ratio of 16.82. This metric takes into account a company’s operational cash flow and is commonly utilized to identify firms that may be underpriced relative to their strong cash position. The company's present P/CF appears favorable when contrasted with the sector's typical P/CF of 17.49. Over the last year, CAH's P/CF reached a peak of 17.91 and dropped to a minimum of 12.96, with an average of 15.10.

Here are several alternative versions of your original text: 1. These represent just some of the important indicators contributing to Cardinal Health’s solid Value rating, yet they indicate that the stock may currently be trading below its true worth. Considering the positive prospects for its earnings, CAH appears as a compelling value investment today. 2. A handful of crucial measures underpin Cardinal Health’s favorable Value score, which suggest the stock could be undervalued at present. Taking into account its robust earning potential, CAH stands out as an attractive value option right now. 3. While these are merely a selection of significant metrics supporting Cardinal Health’s high Value grade, they point toward the possibility that the stock is currently underestimated. Combined with its promising financial outlook, CAH presents itself as a strong value opportunity at this time. 4. Only a portion of the essential performance markers contribute to Cardinal Health’s excellent Value assessment; however, they support the idea that the company’s shares might be priced too low. With its optimistic earnings forecast, CAH seems like a powerful choice among value stocks nowadays. 5. These are just examples of the major factors behind Cardinal Health’s good Value rating, but they imply that the stock could be relatively inexpensive right now. Factoring in its healthy profit projections, CAH emerges as a notable value pick at the current stage.

This piece was first released on Zacks Investment Research ().