Cardinal Health (CAH)

Benzinga is reporting that Zacks recently upgraded Cardinal Health to “Outperform" with a target price of $37 based on approximately 15.7x their fiscal 2011 EPS estimate of $2.36.
I like Cardinal Health. They have produced a ROE consistently in the teens over the past 10 years. Debt to Equity under 50%. Consistent dividends. Good, solid company. But, I am not comfortable with placing an almost 16 times earnings multiple on the company, especially using 2011 earnings.

Feb 10 · 12:47:00 PM · Source: Benzinga.com
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by Rich Pike