Analyst Ratings for Cardinal Health Inc. (CAH)

Updated: 2017-07-28

Cardinal Health Inc. (NYSE:CAH) was awarded an average rating of Hold from investment analysts following the stock. CAH had previously received a consensus rating of Hold a month ago.

Of the 20 analysts covering the stock, 4 gave it a buy rating, 0 issued an overweight rating, 16 gave a hold rating, 0 issued an underweight rating, and 0 gave a sell rating. Compared to three months ago, there has been an increase of 1 in the number of analysts with a positive outlook on the stock. Over the same time period, there has been an increase of 0 in the number of analysts with a negative outlook on the stock.

Many analysts weighed in on price targets for CAH. The maximum price target given was 87, implying potential capital gains of 12.1 percent. The most pessimistic price target was 65, implying a possible loss of -16.25 percent. One must be careful with overanalyzing price targets and ratings due to possible conflicts of interest among the analysts releasing them.

Analysts have revised their earnings estimates downwards for this quarter, by about -0.4 percent on average, compared to last month. That number becomes -6.06 percent if we expand the time horizon to include the past 3 months instead of just one. On the other hand, earnings estimates for the fiscal year have been revised upwards by 0 percent, as compared to a month ago. If we look at the last 90 days instead, we find a net average change of -0.09 percent in FY estimates.

Investors like to see analysts making revisions in the same direction, as that raises confidence in the revisions. Over the past month, 0 analysts increased their quarterly estimates, while 2 analysts made negative revisions. During this time, 0 analysts made positive revisions in their estimates for this fiscal year's earnings, compared to 2 analysts that revised their FY estimates downwards.

CAH has an estimated earnings growth rate of 25.63 percent as forecasted by analysts. People on Wall Street often look at a company's PEG ratio. Smaller PEG ratios are desirable, because that is often interpreted as the company being fairly priced relative to its growth rate. PEG ratios below 1 are often considered desirable, although it is frequently more appropriate to compare PEG ratios to the company's peers. CAH has a PEG ratio of 0.72.

CAH has traded between a high of 85.52 and a low of 62.70 over the past year. Today's price is 23.78 percent above the 52-week low, and below the high by 9.25 percent. CAH has a price/earnings ratio of 18.48. Investors typically compare the P/E ratio to a company's peers in the industry. The CAH value stock report compares CAH to some of its peers using value stock charts. The market cap of CAH is $24.2 billion. CAH's next earnings release will be on 0000-00-00, which is days away.