Cardinal Health, Inc.

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Cardinal Health, Inc. stock analysis CAH overview
Somewhat Bullish +45

Cardinal Health (CAH) Stock Moves -1.71%: What You Should Know

📉 Cardinal Health (CAH) stock closed at $207.70, declining -1.71% while outperforming the broader S&P 500 and Nasdaq on the day.

📉 Over the past month, CAH has dropped 6.57%, lagging behind its Medical sector peers which fell 7.17%.

📅 Earnings are anticipated for April 30, 2026, with analysts expecting $2.80 per share EPS and $62.42 billion in revenue.

💰 Fiscal year consensus estimates project $10.31 EPS and $259.27 billion in revenue, representing significant growth from the prior year.

🔭 No changes were made to the Zacks Consensus EPS estimate recently for Cardinal Health.

📊 The stock currently holds a Zacks Rank of #2 (Buy), which historically suggests good future price performance.

💵 CAH is trading at a Forward P/E ratio of 15.48, which indicates it is undervalued compared to the industry average of 19.37.

⚖️ The company holds an "A" grade for Value and carries a mean analyst price target of $252.60 with an overweight rating.

📈 The PEG ratio of 1.24 is notably lower than the industry average of 2.23, highlighting strong earnings growth potential relative to valuation.

💰 CAH's Price-to-Cash-Flow ratio stands at 15.27 versus an industry average of 19.23, further supporting its undervalued status.

Bullish Signals
  • Cardinal Health's earnings are projected to grow 19.15% year-over-year with estimated EPS of $2.8 per share for the upcoming quarter.
  • The company is expected to generate revenue of $62.42 billion, representing a 13.74% increase from the same quarter last year.
  • Full-year fiscal consensus estimates predict earnings of $10.31 per share and revenue of $259.27 billion, with growth of +25.12% and +16.48%, respectively.
  • Cardinal Health currently holds a Zacks Rank of #2 (Buy), indicating a strong buy signal based on earnings estimate trends.
  • The stock has an 'A' grade in the Value category, highlighting its attractive valuation relative to peers.
  • Cardinal Health trades at a Forward P/E ratio of 15.48 compared to the industry average of 19.37, suggesting it is undervalued.
  • With a PEG ratio of 1.24 versus an industry average of 2.23, the stock shows attractive growth-adjusted valuation.
  • The company's P/CF ratio of 15.27 is significantly lower than the industry average of 19.23, pointing to strong operating cash flow value.
  • Analysts maintain an 'overweight' rating with a mean price target of $252.60, implying significant upside potential from the current trading price.
Risk Factors
  • The stock is down 6.57% over the past month, underperforming its own sector peers which have lost only 4.99% relative to the broader S&P 500.
  • Cardinal Health's current Forward P/E ratio of 20.49 is trading at a premium compared to the industry average of 16.08, despite some later text suggesting different valuation metrics (highlighting potential data inconsistency or volatility in market perception).
  • The consensus earnings estimate for the upcoming report on April 30, 2026, is $2.8 per share; any miss against this figure would be negative given the high expectations of 19.15% year-over-year growth.
  • While the article notes positive analyst revisions generally correlate with price gains, there has been no change in the Zacks Consensus EPS estimate recently, which removes a potential catalyst for upside momentum.
Full Analysis
Cardinal Health (CAH) stock closed at $207.70, marking a 1.71% decline, though it outperformed the broader market indices including the S&P 500 and Dow Jones in that session. Over the past month, the shares have dropped approximately 6.57%, trailing slightly behind the wider Medical sector's losses but still lagging the S&P 500 overall. The article sets the stage for upcoming earnings expected on April 30, 2026, where analysts project EPS of $2.8 per share (a 19.15% year-over-year increase) and revenue of $62.42 billion (a 13.74% increase). For the full fiscal year, consensus estimates predict earnings of $10.31 per share and revenue of $259.27 billion, representing growth of roughly 25.12% and 16.48%, respectively. The content highlights Cardinal Health's standing within the Zacks Investment Research framework, noting a current Zacks Rank of #2 (Buy) with no recent changes to consensus EPS estimates. Valuation metrics are presented as potentially attractive relative to the Medical - Dental Supplies industry; specifically, the company trades at a Forward P/E of 20.49 compared to an industry average of 16.08 in one section, while another section cites a lower Forward P/E of 15.48 against a higher industry average of 19.37. The PEG ratio is noted at 1.36 (or 1.24 in a different valuation snapshot) and significantly below the industry average of 1.76 or 2.23, suggesting better value relative to growth. Additionally, the Price-to-Cash-Flow ratio stands at 15.27 versus an industry average of 19.23. Beyond specific metrics, the text promotes Zacks' analytical tools such as the Zacks Rank system and Style Scores, which rate Cardinal Health with an "A" grade for Value and an average analyst rating of overweight with a mean price target of $259.60 (though the sentence cuts off in the provided text). The overall narrative frames the stock as a potential value pick despite its recent price weakness, leveraging strong earnings growth estimates and favorable relative valuations against industry peers. The article concludes by referencing Zacks.com for ongoing monitoring of these fundamental indicators.