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Why This 1 Value Stock Could Be a Great Addition to Your Portfolio

Zacks Equity Research
·2-min read

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.

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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 boasts a Value Style Score of A and VGM Score of A, and holds a Zacks Rank #3 (Hold) rating. Shares of Cardinal Health are trading at a forward earnings multiple of 13.7X, as well as a PEG Ratio of 1.1, a Price/Cash Flow ratio of 11.6X, and a Price/Sales ratio of 0.1X.

Many value investors pay close attention to a company's earnings as well. For CAH, eight analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.07 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

To read this article on Zacks.com click here.

Zacks Investment Research