Cardinal Health, Inc.

🇺🇸New York Stock Exchange
Back to all articles
Cardinal Health, Inc. stock analysis CAH overview
Somewhat Bullish +50

5 Best Fortune 500 Stocks to Buy According to Analysts

🏥 Cardinal Health (CAH) is a Fortune 500 company operating as a global distributor of pharmaceuticals, medical products, and laboratory solutions.

📈 TD Cowen upgraded its price target on CAH from $251 to $255 while maintaining a "Buy" rating, indicating a 30% upside.

💰 The analyst's move follows the company's Q3 report where adjusted earnings of $3.17 per share significantly beat estimates by $0.38.

📉 Despite strong earnings, CAH's revenue of nearly $61 billion fell short of expectations due to growth in other sectors.

💊 Pharmaceutical revenue specifically slowed due to Inflation Reduction Act changes impacting wholesale acquisition costs.

🎯 Cardinal Health raised its full-year 2026 adjusted EPS target to between $10.70 and $10.80, surpassing analyst consensus.

⚙️ Analysts updated their models based on the quarterly results to reflect the new operational realities for the healthcare giant.

Bullish Signals
  • On May 1, TD Cowen raised its price target on Cardinal Health from $251 to $255 while maintaining a 'Buy' rating.
  • The new target implies an upside of 30% from current price levels for the stock.
  • Cardinal Health reported Q3 adjusted earnings of $3.17 per share, beating analyst estimates by $0.38.
  • Despite missing revenue expectations, Cardinal Health achieved year-over-year revenue growth of 11%.
  • Management demonstrated confidence by raising its full-year 2026 adjusted EPS target to $10.70-$10.80 per share.
  • The company raised its guidance above both its previous forecast and the analyst consensus estimate.
Risk Factors
  • Cardinal Health's revenue of almost $61 billion fell short of expectations by $1.3 billion, indicating a significant miss in top-line performance despite year-over-year growth.
  • The company's Pharmaceutical revenue growth was explicitly hurt by changes related to the Inflation Reduction Act impacting wholesale acquisition costs of drugs.
  • Despite reporting strong Q3 earnings, the substantial revenue miss suggests potential underlying weakness in its core business operations or market demand.
Full Analysis
Cardinal Health, Inc. (NYSE:CAH) is featured in an article titled "5 Best Fortune 500 Stocks to Buy According to Analysts," which highlights recent positive sentiment and financial performance from the medical distribution giant. On May 1, TD Cowen analyst firm increased its price target for Cardinal Health's stock from $251 to $255 while maintaining a "Buy" rating. The adjustment reflects an estimated upside of 30% from current trading levels and follows an updated analyst model based on the company's quarterly report. The article details Cardinal Health's Q3 results, released on April 30, noting that adjusted earnings per share reached $3.17, which significantly beat estimates by $0.38. However, total revenue of nearly $61 billion fell short of expectations by $1.3 billion, even though the company reported year-over-year growth of 11%. The decline in revenue was specifically attributed to impacts from the Inflation Reduction Act on wholesale acquisition costs for drugs. Looking ahead, Cardinal Health raised its full-year 2026 adjusted earnings per share target range to between $10.70 and $10.80 per share, up from a previous forecast of $10.15 to $10.35 and beating the analyst consensus of $10.31 per share. The company's operations encompass pharmaceutical distribution, specialty products, home-health services, nuclear pharmacies, manufacturing facilities, and medical laboratory products globally.