Cardinal Health, Inc.

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Cardinal Health, Inc. stock analysis CAH overview
Bullish +75

Cardinal Health (CAH) Laps the Stock Market: Here's Why - Yahoo Finance

- 📈 Cardinal Health stock closed at $210.93, up 1.25% and outperforming the S&P 500 and major indices.

- 🗓️ The company is scheduled to release its quarterly earnings on February 5, 2026.

- 💰 Analysts forecast upcoming quarterly EPS of $2.33, representing a 20.73% increase year-over-year.

- 💵 Projected quarterly revenue is estimated at $64.33 billion, reflecting a 16.41% growth from the prior year.

- 📊 Full-year consensus estimates project earnings of $9.93 per share and revenue of $258.8 billion.

- ⭐ Zacks assigns Cardinal Health a Rank #2 (Buy), which has historically outperformed other ranks.

- 🏷️ The stock currently trades at a Forward P/E ratio of 20.98, higher than the industry average of 18.04.

- 🍎 Its PEG ratio stands at 1.43, significantly lower than the industry average of 1.96.

- 🔧 The Medical-Dental Supplies industry ranks in the top 35% based on Zacks Industry Rank metrics.

- 💎 Cardinal Health holds an "A" grade in Value and is considered undervalued by several metrics.

- 📉 Its Forward P/E has recently been 15.48, compared to an industry average of 19.37.

- 💸 The stock's P/CF ratio is 15.27, which is more attractive than the industry average of 19.23.

- 📈 Analyst consensus rates the stock as overweight with a mean price target of approximately $252.60 to $252.93.

- 🔮 Style Scores analysis reinforces Cardinal Health's status as a strong value pick within its sector.

Bullish Signals
  • Cardinal Health's stock closed at $210.93, marking a +1.25% gain and outperforming the S&P 500's daily gain of 0.5%.
  • Analysts forecast earnings per share (EPS) of $2.33 for the upcoming quarter released on February 5, 2026, representing a 20.73% upward movement from the prior year.
  • Revenue is projected to reach $64.33 billion for the quarter, which is up 16.41% from the same period last year.
  • The full-year fiscal earnings are estimated at $9.93 per share and revenue of $258.8 billion, reflecting growth of +20.51% and +16.27% respectively compared to the prior year.
  • Cardinal Health holds a Zacks Rank of #2 (Buy), indicating strong analyst confidence in the business health and profitability trends.
  • The stock has received an 'A' grade for Value, highlighting its attractive current valuation metrics.
  • With a Forward P/E ratio of 15.48, the stock trades at a discount compared to its industry average of 19.37, suggesting it may be undervalued.
  • The company's PEG ratio of 1.24 is significantly lower than the industry average of 2.23, reflecting a strong expected earnings growth relative to price.
  • The current P/CF ratio of 15.27 is attractive compared to the industry average of 19.23, pointing to an impressive cash outlook.
  • Analysts assign an 'overweight' rating to CAH with a mean price target of $252.60, implying substantial upside potential from current levels.
Risk Factors
  • Cardinal Health's stock is trading at $210.93, which is significantly below its average price target of approximately $252.60 to $252.93, implying a substantial downside potential of over 20% based on analyst expectations.
  • The company trades at a Forward P/E ratio of 15.48, which the article notes has fluctuated between 13.69 and 20.15 over the past year, indicating volatility in valuation multiples and a history of being priced above current levels.
  • Despite the stock being labeled as undervalued compared to its industry average P/E of 19.37, the actual Forward P/E is notably lower than both the company's own historical high of 20.15 and its median of 15.30, suggesting the market may be anticipating weaker performance or a correction from previous higher valuations.
  • Analysts have set a mean price target of $252.93, which represents a premium valuation that is not fully reflected in the current trading price of $210.93, creating a risk if earnings miss expectations leading to a rapid re-rating towards intrinsic value.
  • The article mentions that Cardinal Health's P/CF ratio has ranged from 12.96 to 17.47 in the past year with a median of 15.12, while the current ratio is 15.27, indicating the stock has recently returned to near-median historical valuation levels rather than trading at deep discount.
Full Analysis
Cardinal Health (CAH) recently closed at $210.93, reflecting a 1.25% gain that outpaced the S&P 500 and Nasdaq. Looking ahead, investors are focused on the company's upcoming earnings release scheduled for February 5, 2026, with analysts forecasting an EPS of $2.33 and revenue of $64.33 billion for the quarter, representing significant year-over-year growth projections. For the full fiscal year, consensus estimates project earnings of $9.93 per share and revenue of $258.8 billion, indicating strong expected performance across the medical supplies sector. In terms of valuation metrics, Cardinal Health presents a mixed picture depending on the measure used but often appears attractive relative to peers. While the forward P/E ratio is projected at 18.04 by Zacks, other sections note a Forward P/E of 15.48 or 20.98, highlighting fluctuations in analyst pricing models. The stock currently holds a Zacks Rank of #2 (Buy), supported by an "A" grade in the Value category according to the Style Scores system. This suggests the company may be undervalued, particularly when considering its P/CF ratio of 15.27 compared to an industry average of 19.23, and a PEG ratio of 1.43 against an industry average of 1.96. Analyst sentiment remains generally positive, with the stock carrying an average rating of "overweight" and a mean price target ranging between $252.60 and $252.93, which implies approximately 20% upside from recent trading levels. The medical sector itself ranks in the top 35% among over 250 industries based on Zacks Industry Rank calculations. These factors combined suggest that Cardinal Health is a key watchlist item for investors seeking value within the healthcare distribution space ahead of its earnings event.