Cardinal Health, Inc.

New York Stock Exchange
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Somewhat Bullish +35

Cardinal Health (NYSE:CAH) Stock Rating Upgraded by Wall Street Zen

AI-generated analysis

📈 Wall Street Zen upgraded Cardinal Health to a 'strong-buy' rating in a new research report issued on Saturday.

📉 Zacks Research downgraded the stock from 'strong-buy' to 'hold' in a report released on Friday, June 12th.

💰 The company reported Q1 earnings of $3.17 per share, surpassing the consensus estimate of $2.79 by $0.38.

📊 Revenue for the quarter totaled $60.94 billion, marking an 11.0% increase compared to the previous year.

🎯 Analysts forecast FY 2026 EPS between $10.70 and $10.80, with a consensus price target of $247.80.

🏦 Wells Fargo lowered its price objective to $245.00 while TD Cowen raised theirs to $255.00 in recent notes.

📉 The firm reported a negative return on equity of 92.61% and a net margin of 0.62% for the quarter.

🏢 Institutional ownership stands at 87.17%, with hedge funds and other investors holding significant positions.

🚀 Jones Financial Companies Lllp increased its stake by 198.3% in the first quarter, now owning 21,112 shares.

📦 Cardinal Health operates as a major provider of supply chain and distribution services for the healthcare sector.

Bullish Signals
  • Wall Street Zen upgraded Cardinal Health to a 'strong-buy' rating, indicating renewed analyst confidence in the company's prospects.
  • The company beat quarterly earnings expectations with $3.17 EPS compared to the consensus of $2.79, demonstrating operational strength.
  • Revenue grew by 11.0% year-over-year to reach $60.94 billion, reflecting strong demand for its healthcare distribution services.
  • Multiple institutional investors increased their holdings, including a massive 198.3% stake increase by Jones Financial Companies Lllp.
  • The consensus price target of $247.80 suggests continued market interest and potential upside from current levels.
Risk Factors
  • Zacks Research downgraded the stock to a 'hold' rating, creating conflicting analyst sentiment that may complicate investment decisions.
  • Revenue of $60.94 billion missed analyst expectations of $62.10 billion, indicating some pressure on top-line growth relative to forecasts.
  • The company reported a negative return on equity of 92.61%, which could signal underlying capital efficiency issues or leverage concerns.
  • Wells Fargo lowered its price objective from $256.00 to $245.00, reflecting bearish sentiment among some major financial institutions.
Full Analysis
Cardinal Health (NYSE:CAH) received a 'strong-buy' rating upgrade from Wall Street Zen analysts, contrasting with a recent downgrade to 'hold' by Zacks Research. The stock maintains a consensus 'Moderate Buy' rating among fifteen analysts with a price target of $247.80, though Wells Fargo recently lowered its objective to $245.00 while TD Cowen raised theirs to $255.00. The company reported Q1 earnings of $3.17 per share, beating the consensus estimate of $2.79 by $0.38. Revenue reached $60.94 billion, representing an 11.0% year-over-year increase, though it fell slightly short of analyst expectations at $62.10 billion. The firm posted a net margin of 0.62% and issued FY 2026 guidance ranging between $10.70 and $10.80 EPS. Institutional ownership remains high at 87.17%, with several major investors increasing their stakes in the first or second quarter. Integrated Wealth Concepts LLC boosted its position by 6.9%, while Jones Financial Companies Lllp grew its stake significantly by 198.3%. Other notable increases came from Cerity Partners LLC and Nebula Research & Development LLC, signaling continued institutional interest despite mixed analyst ratings.