Cardinal Health, Inc.

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Somewhat Bullish +50

Is It Too Late To Consider Cardinal Health (CAH) After Its Strong Multi‑Year Share Price Run?

📉 Stock dropped 0.5% recently after massive gains of 48.7% this year and 272% over five years.

💰 DCF models suggest a $540.74 intrinsic value, implying the shares are undervalued by 62%.

📊 Current P/E ratio is slightly elevated at 29x compared to the healthcare industry average.

🎯 Simply Wall St's Fair Ratio model indicates current prices trade below the modeled fair valuation.

📉 Cardinal Health (CAH) shares recently declined 0.5% over the last month following a strong 48.7% return over the past year and a 272% gain over five years.

💰 A Discounted Cash Flow (DCF) model estimates an intrinsic value of approximately $540.74 per share, suggesting the stock is undervalued by 62% compared to the current price of ~$205.

📊 The company trades at a P/E ratio of 29.11x, which is above both the healthcare industry average (24.34x) and peer averages (24.47x).

🎯 Simply Wall St's proprietary "Fair Ratio" model determines a fair P/E of 31.16x, indicating the current shares trade below their modeled valuation level.

💧 Cardinal Health is projected to generate free cash flow of $5.52b in the last twelve months, growing to $4.75b by 2030 according to the DCF assumptions.

🤝 The stock price has stabilized recently as investors reassess risks and long-term demand within the healthcare supply chain sector.

🧠 Valuation analysis incorporates company-specific fundamentals such as earnings growth profiles and profit margins rather than relying solely on broad industry averages.

💬 Community narratives show divergent investor expectations, with bullish targets up to $275 contrasting against more cautious targets around $200.

⚠️ The article includes a standard disclaimer stating the content is based on historical data and analyst forecasts and does not constitute financial advice.

Bullish Signals
  • Cardinal Health rose 48.7% last year and 162.3% in three years.
  • D CF model values Cardinal at $540.74, implying 62% undervaluation.
  • Simply Wall St Fair Ratio is 31.16x vs current P/E of 29.11x.
  • Bullish targets project prices as high as US$275 per share.
Risk Factors
  • Stock declined 0.5% in last 30 days.
  • P/E ratio of 29.11x exceeds industry and peer averages.
  • Price targets range from US$200 to US$275.
Bullish Signals
  • Cardinal Health has delivered a strong 48.7% return over the last year and an impressive 162.3% return over the past three years.
  • A Discounted Cash Flow model estimates Cardinal Health's intrinsic value at $540.74 per share, implying the stock is 62.0% undervalued compared to the current price of roughly $205.
  • Simply Wall St's proprietary Fair Ratio for Cardinal Health is 31.16x, which is higher than the company's current P/E of 29.11x, suggesting the shares trade below their modeled fair value level.
  • Analyst forecasts have generated bullish price targets as high as US$275 per share, indicating potential upside for investors.
Risk Factors
  • The stock experienced a decline of 0.5% over the last 30 days, indicating short-term weakness despite long-term gains.
  • Analysts are currently predicting price targets as high as US$275, while other cautious views project targets around US$200, highlighting significant valuation uncertainty among market participants.
  • The P/E ratio of 29.11x is noted to be above both the Healthcare industry average of 24.34x and the peer average of 24.47x, suggesting the stock may be priced higher than its peers despite undervaluation metrics.
Neutral +8

William Blair Initiates Cardinal Health at Outperform: Is the Pharma Distributor a Stealth Compounder?

💰 Cardinal Health posted 19% revenue growth and doubled cash flow last quarter.

🎯 Analysts rate shares "Outperform" based on a durable moat and specialty pivot.

🚀 Stock is a stealth compounder with 48% annualized returns over the past year.

⚖️ Management raised guidance to $10.35 EPS, trading at 18x forward earnings.

⚠️ Risks include razor-thin margins, regulatory investigations, and GLP-1 commoditization fears.

🏆 William Blair initiated coverage of Cardinal Health with an "Outperform" rating, highlighting its durable competitive moat and specialty-driven growth potential.

💰 The firm simultaneously launched an "Outperform" rating on rival McKesson, signaling strong conviction in the U.S. pharma distribution oligopoly.

📈 Cardinal Health generated 19% revenue growth to $65.63 billion last quarter, driven by a pivot toward higher-margin specialty services and GLP-1 drug volumes.

🎯 Stock performance reflects the "stealth compounder" thesis with 48% returns over the past year and 240% over five years.

💼 CEO Jason Hollar raised fiscal 2026 EPS guidance to $10.15–$10.35 and noted double-digit profit growth across all five operating segments.

🔗 Key strategic deals include the Solaris Health urology platform and Advanced Diabetes Supply partnerships to deepen the specialty mix.

⚖️ The company trades at 18x forward earnings, below McKesson's 19x, with a market cap of $47.6 billion and a consensus target of $248.27.

📅 William Blair's initiation was pre-earnings ahead of Cardinal Health's Q3 FY2026 results due on April 30, while competitors report in May.

💧 Operating cash flow surged 272% to $686 million last quarter, funding buybacks and the company's 1% dividend yield.

🐻 Bear case risks include razor-thin 1% operating margins, a DOJ Anti-Kickback Statute investigation, GLP-1 commoditization fears, and GMPD tariff exposure.

🤝 The current analyst consensus aligns with William Blair's upgrade, averaging a "Moderate Buy" across 17 Wall Street analysts.

🧬 Demographic tailwinds from an aging population alongside rising specialty medicine adoption are central to the long-term investment thesis.

Bullish Signals
  • William Blair initiates Outperform rating on Cardinal Health.
  • Revenue grew 19% YoY to $65.63 billion last quarter.
  • Beat EPS consensus at $2.63 non-GAAP per share.
  • CEO raised fiscal 2026 EPS guidance to $10.15-$10.35.
  • Operating cash flow surged 272% to $686 million.
  • Projected double-digit profit growth across all five segments.
  • Trades at attractive 18x forward earnings with upside.
  • Stock gained 48% this year and 240% over five years.
Risk Factors
  • Operates with razor-thin 1% operating margins.
  • Faces ongoing DOJ Anti-Kickback investigation risk.
  • GMPD tariffs threaten generics segment profitability.
  • GLP-1 commoditization may compress future margins.
Bullish Signals
  • William Blair initiated coverage of Cardinal Health with an Outperform rating, signaling strong institutional confidence in the company's prospects.
  • The company delivered a robust 19% year-over-year revenue growth to $65.63 billion last quarter, demonstrating strong top-line momentum.
  • Cardinal Health beat analyst consensus on non-GAAP EPS at $2.63, validating its operational execution and profitability.
  • CEO Jason Hollar raised fiscal 2026 EPS guidance to a range of $10.15 to $10.35, reflecting increased management confidence in future earnings.
  • The company achieved a massive 272% surge in operating cash flow to $686 million last quarter, providing ample liquidity for share buybacks and dividends.
  • Segment profit growth is projected to remain at least double-digit across all five operating segments according to management.
  • Cardinal Health trades at an attractive valuation of 18x forward earnings with a significant upside potential from the consensus 12-month target price.
  • The stock has delivered impressive historical returns, gaining 48% over the past year and 240% over five years.
Risk Factors
  • Cardinal Health operates with razor-thin operating margins of just 1%, leaving little room for error or pricing power erosion.
  • The company faces significant regulatory overhang from an ongoing DOJ Anti-Kickback Statute investigation.
  • Potential exposure to GMPD (generic drug price transparency) tariffs poses a risk to profitability in the generics segment.
  • There is a downside risk that GLP-1 drugs could become commoditized, which may compress margins despite high volume growth.
  • The upcoming Q3 FY2026 earnings release on April 30 will be critical for validating whether the specialty-led growth narrative can truly offset these structural risks.
  • While William Blair initiated coverage at Outperform, Cardinal Health was notably excluded from an analyst's top 10 stocks list, indicating mixed expert opinion.
Bullish +75

We Ran A Stock Scan For Earnings Growth And Cardinal Health (NYSE:CAH) Passed With Ease

🏥 Cardinal Health is a profitable, low-risk alternative for avoiding speculative stocks.

💰 EPS surged 31% to $7.06, while revenue expanded 10% to $24 billion.

⚠️ Two warning signs exist despite insider alignment and promising analyst growth forecasts.

🏥 Cardinal Health (NYSE:CAH) is highlighted as a profitable, growing company suitable for investors avoiding high-risk "story stocks."

💰 Earnings per share increased from US$5.41 to US$7.06 over the last year, representing a commendable 31% gain.

📈 Revenue grew by 10% to reach US$24 billion in the reported period.

📉 EBIT margins remained fairly unchanged during the last year despite revenue expansion.

📊 Three-year EPS growth rates are viewed as less indicative of future performance compared to recent growth metrics.

💼 Company insiders hold US$44 million worth of shares, demonstrating alignment with shareholder interests.

🔍 Analyst forecasts suggest Cardinal Health has promising growth potential and warrants further research by growth investors.

⚠️ The article notes there are two warning signs associated with Cardinal Health that investors need to consider.

Bullish Signals
  • EPS soared from $5.41 to $7.06, a 31% gain last year.
  • Revenue grew 10%, reaching $245 billion.
  • Insiders own $44 million in shares, showing alignment.
  • Strong EPS growth and insider conviction attract investors.
Risk Factors
  • EPS growth from low base limits future performance expectations.
  • EBIT margins flat over the last year show no efficiency gains.
  • Two specific company risks remain undisclosed in the analysis.
  • Insider ownership at 0.09% is insufficient given company size.
  • Past growth rates should not be used as investment bases.
Bullish Signals
  • Cardinal Health (NYSE:CAH) delivered impressive earnings per share (EPS) growth, with EPS soaring from US$5.41 to US$7.06 over the last year.
  • The company achieved a commendable 31% gain in EPS during the past year, demonstrating strong profitability and operational success.
  • Cardinal Health reported revenue growth of 10% for the period, reaching a total of US$245 billion.
  • Company insiders show alignment with shareholders through ownership of US$44 million worth of shares, indicating conviction in the business strategy.
  • The combination of solid EPS growth and insider investment positions Cardinal Health as a company worthy of further research for growth investors.
Risk Factors
  • Cardinal Health's EPS growth over the last three years is described as coming from a relatively low point, raising concerns that this historical rate isn't particularly indicative of expected future performance.
  • EBIT margins remained fairly unchanged over the last year, suggesting limited operational leverage or efficiency gains compared to revenue growth.
  • The article explicitly mentions there are 2 warning signs for Cardinal Health that need to be taken into consideration, though these specific risks are not detailed in the text.
  • Insider ownership accounts for only 0.09% of the company, which, while still a considerable amount ($44m), is noted as insufficient given the size of Cardinal Health to expect insiders to hold a significant proportion.
  • The article emphasizes that past performance should be weighed carefully against future outlooks, warning that base opinions on past growth rates alone may not be sufficient for investing decisions.
Slightly Bullish +25

Cardinal Health (CAH) Gains But Lags Market: What You Should Know

📈 Cardinal Health shares rose 1.11% but lagged the S&P 500's 2.51% gain today.

💰 Analysts project $2.8 EPS and $62.42 billion revenue for the April 30, 2026 earnings report.

🏆 Zacks Rank #2 Buy designation reflects strong analyst sentiment despite stagnant consensus earnings estimates.

📈 Cardinal Health closed at $215.13, rising 1.11% but underperforming the S&P 500's 2.51% gain and Nasdaq's 2.8% increase.

📉 Over the past month, CAH declined by 1.97%, which was smaller than the broader Medical sector drop of 5.12%.

📅 Analysts expect Cardinal Health to report earnings on April 30, 2026, with projected EPS of $2.8 and revenue of $62.42 billion.

📊 Full-year consensus estimates project earnings per share of $10.31 and revenue of $259.27 billion, representing significant year-over-year growth.

🔍 Recent analyst estimate revisions are positively correlated with share price momentum and indicate sentiment toward the company's operations.

💰 Cardinal Health currently trades at a Forward P/E ratio of 20.63, which is premium compared to the industry average of 15.09.

📈 The stock has a PEG ratio of 1.37, lower than the Medical - Dental Supplies industry average of 1.74.

🏆 Cardinal Health holds a Zacks Rank of #2 (Buy), based on its stagnant consensus EPS estimate and positive analyst sentiment.

🎯 The company belongs to the Medical - Dental Supplies industry, which ranks in the top 31% of all industries based on Zacks metrics.

📉 Investors can monitor upcoming earnings releases and estimate revisions for potential near-term share price movements.

🔗 Zacks.com provides a rating model that considers these metrics to help identify stocks with strong performance potential.

📚 The Zacks Rank system has historically shown an average annual return of 25% for #1 stocks since 1988.

Bullish Signals
  • Cardinal Health closed at $215.13, up 1.11% from previous day.
  • Analysts project quarterly EPS of $2.8 on April 30, 2026, a 19.15% YoY increase.
  • Consensus revenue estimates rise to $62.42 billion, a 13.74% quarter-over-quarter increase.
  • Full-year consensus estimates call for EPS of $10.31 and revenue of $259.27 billion.
  • Full-year EPS growth of +25.12% and revenue growth of +16.48% YoY.
  • Analysts' upward revisions express confidence in business operations and profit generation.
  • Cardinal Health carries a Zacks Rank of #2 (Buy).
  • Zacks #1 ranked stocks generated average annual returns of +25% since 1988.
  • Medical-Dental Supplies ranks top 31% with Zacks Industry Rank of 74.
  • Top 50% rated industries outperform bottom half by factor of 2 to 1.
Risk Factors
  • Cardinal Health stock dropped 1.97% last month despite sector outperformance.
  • Company trades at premium P/E of 20.63 versus industry average of 15.09.
  • Daily gain underperformed S&P 500, Dow, and Nasdaq gains.
  • Consensus EPS estimates stagnant, limiting near-term share price momentum.
Bullish Signals
  • Cardinal Health (CAH) closed at $215.13, marking a +1.11% move from the previous day.
  • Analysts project earnings per share of $2.8 for the upcoming quarter release on April 30, 2026, representing a 19.15% increase year-over-year.
  • Consensus revenue estimates for the upcoming quarter show an escalation to $62.42 billion, which is a 13.74% increase compared to the year-ago quarter.
  • Full-year Zacks Consensus Estimates call for earnings of $10.31 per share and revenue of $259.27 billion, representing year-over-year changes of +25.12% and +16.48%, respectively.
  • Upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
  • Cardinal Health currently carries a Zacks Rank of #2 (Buy), while #1 ranked stocks have generated an average annual return of +25% since 1988.
  • The Medical-Dental Supplies industry ranks in the top 31% of all industries with a current Zacks Industry Rank of 74.
  • Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Risk Factors
  • Cardinal Health (CAH) stock dropped 1.97% in the past month, outperforming the sector's decline but lagging the broader S&P 500's monthly loss of 1.66%. The company is trading at a premium forward P/E ratio of 20.63 compared to its industry average of 15.09.
  • The stock closed at $215.13, posting a +1.11% gain that underperformed the S&P 500's daily gain of 2.51%, the Dow's rise of 2.85%, and the Nasdaq's increase of 2.8%.
  • The company carries a Zacks Rank of #2 (Buy) with stagnant consensus EPS estimates over the past month, which may not reflect immediate near-term share price momentum.
Neutral 0

Cardinal Health Inc. stock rises Wednesday, still underperforms market

📈 Cardinal Health shares rose 1.11% to $215.13 on Wednesday.

📊 Stock posts second consecutive day of gains.

🌍 Rise supported by broader market strength in S&P and Dow.

📈 Cardinal Health Inc. (CAH) shares rose 1.11% to close at $215.13 on Wednesday.

📊 The stock continues a trend of gains, posting its second consecutive day of positive returns.

🌍 The broader market contributed to the rise as the S&P 500 and Dow Jones Industrial Average gained ground.

Bullish Signals
  • Shares rose 1.11% to $215.13, showing positive momentum.
  • Stock gained for second day despite weak market.
Risk Factors
  • Shares rose only 1.11% vs S&P 500 gain of 2.51%.
  • Underperforming broader market despite positive trading session.
Bullish Signals
  • Cardinal Health Inc. (CAH) shares rose 1.11% to $215.13 on Wednesday, indicating positive momentum.
  • The stock posted gains for the second consecutive day, demonstrating sustained buying interest despite overall market underperformance relative to indices like the S&P 500.
Risk Factors
  • Cardinal Health Inc. (CAH) continues to underperform the broader market despite a positive trading session, with shares rising only 1.11% compared to the S&P 500 Index SPX gain of 2.51% and Dow Jones Industrial Average DJIA rise of 2.85%.
  • The stock's second consecutive day of gains does not offset its broader trend of underperformance, indicating relative weakness in the current market environment.
Neutral +5

Cardinal Health reported a big increase in median worker pay

💰 CEO compensation fell 26% to $19M after severance plan adjustments; CFO pay dropped 8.8%.

📉 Global Medical Products revenue dipped 2% due to expired contracts, while medtech sales rose 2%.

📈 Median worker pay surged 29% to $72,657, shrinking CEO-to-median pay ratio from 457:1 to 261:1.

📊 Cardinal Health reported double-digit growth in median worker pay, a significant increase from the previous year.

💰 CEO Jason Hollar's total compensation dropped 26% to $19 million following changes to the company's severance plan.

📉 The company's Global Medical Products and Distribution segment ranked as the world's 12th-largest medical device business in 2025.

📉 Total revenue decreased 2% in fiscal 2025 due to expired pharmaceutical distribution contracts, while medtech sales grew 2%.

👤 CFO Aaron Alt received $6.2 million in total compensation for fiscal 2024, down 8.8% from the prior year.

💼 Segment CEO Deborah Weitzman saw an 8% increase in pay to $5.5 million after receiving substantial stock awards and bonuses.

⚖️ Legal Officer Jessica Mayer received $4.9 million in total compensation, representing a 4% increase over the previous year.

📉 Global Medical Products and Distribution Segment CEO Stephen Mason saw a significant 36% pay drop to $4.7 million for fiscal 2025.

📈 The SEC-mandated median employee compensation rose 29% to $72,657, narrowing the ratio between CEO and median worker pay.

📉 CEO pay-to-median-worker ratio decreased from 457:1 the prior year to 261:1 following the large increase in median wages.

✈️ Most of Hollar's other compensation consisted of $445,557 worth of personal use of corporate aircraft.

🗳️ Investors overwhelmingly voted in support of the company's executive pay practices during the November 2025 annual shareholder meeting.

📝 The median employee is defined as a non-exempt, full-time employee in the U.S., though no specific job title was provided.

Bullish Signals
  • Cardinal Health is the world's 12th-largest medical device business.
  • CEO-to-median employee pay gap decreased from 457:1 to 261:1.
  • Median total compensation for all employees increased by 29% to $72,657.
  • Medtech business grew sales by 2% year over year.
  • Investors overwhelmingly approved executive pay practices at the annual meeting.
  • CEO Jason Hollar's compensation decreased by 26% to $19 million.
  • Segment CEO Deborah Weitzman saw an 8% increase in total compensation.
  • Chief Legal Officer Jessica Mayer received a 4% compensation increase to $4.9M.
Risk Factors
  • Revenue down 2% due to expired pharma contracts.
  • Ranked 12th in Medtech Big 100, below competitors.
  • Recruiting hard amid secret executive compensation figures.
  • CEO pay fell 26%, from $25.7M to $19M.
  • Anonymous median employee pay limits benchmarking.
Bullish Signals
  • Cardinal Health's Global Medical Products and Distribution segment ranked as the world's 12th-largest medical device business by revenue, highlighting its strong market position in the medtech industry.
  • The company reported double-digit growth in median worker pay for fiscal 2025, with the U.S. Securities and Exchange Commission requiring a disclosure of the CEO-to-median employee pay gap.
  • Median total compensation for all employees other than the CEO increased significantly to $72,657 from $56,119 the previous year, representing a 29% increase.
  • Cardinal Health's medtech business grew sales by 2% year over year despite a slight decrease in total revenue of 2% driven by pharmaceutical contract expirations.
  • Investors overwhelmingly voted in support of the company's executive pay practices at its annual shareholder meeting on Nov. 5, 2025, indicating confidence in governance.
  • The CEO-to-median employee pay gap decreased from 457:1 to 261:1 after implementing changes to executive compensation, narrowing inequality between leadership and staff.
  • CEO Jason Hollar's total compensation decreased by 26% to $19 million primarily due to adjustments in stock awards, which may improve long-term financial flexibility.
  • Segment CEO Deborah Weitzman saw an 8% increase in total compensation to $5.5 million, reflecting strong performance within the Pharmaceutical and Specialty Solutions segment.
  • Chief Legal and Compliance Officer Jessica Mayer received a 4% increase in total compensation to $4.9 million for fiscal 2025, signaling appreciation for her leadership.
  • Global Medical Products and Distribution Segment CEO Stephen Mason's salary remained consistent at $741,932 despite overall compensation decrease, indicating stable base pay structures.
Risk Factors
  • Total revenue decreased 2% in fiscal 2025 due to the expiration of pharmaceutical distribution contracts affecting its pharmaceutical segment.
  • Cardinal Health's Global Medical Products and Distribution segment ranked only as the world's 12th-largest medical device business in the 2025 Medtech Big 100 ranking, indicating a lower market position relative to competitors.
  • Recruiting and retaining top talent at executive and engineering levels is crucial but remains difficult as employee compensation figures are largely kept secret, limiting transparency for investors.
  • CEO Jason Hollar's total compensation dropped 26% from $25.7 million in fiscal 2024 to $19 million in fiscal 2025, reflecting significant reductions in payout despite increased overall employee pay.
  • The median employee pay disclosure does not provide a specific job title, creating uncertainty about the role's seniority and potential impact on industry compensation benchmarks.
Somewhat Bullish +45

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

📉 CAH stock dropped 1.71% today but outperformed major indices and lagged peers slightly last month.

📅 Earnings expected April 30, with analysts forecasting $2.80 EPS and $62.42B revenue.

💰 Stock trades at a low Forward P/E of 15.48 vs 19.37 industry average.

📊 Holds Zacks Rank #2 (Buy) with an analyst price target of $252.60.

🔭 Strong undervaluation supported by lower PEG (1.24) and Price-to-Cash-Flow ratios.

📉 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
  • Projected EPS growth of 19.15% for next quarter.
  • Revenue expected to rise 13.74% year-over-year.
  • Full-year earnings forecast at $10.31 per share with +25.12% growth.
  • Holds Zacks Rank #2 Buy rating.
  • Graded 'A' for value and trades below industry P/E average.
  • P/CF ratio of 15.27 significantly undercuts sector peers.
  • Analysts rate overweight with mean target price of $252.60.
Risk Factors
  • Stock down 6.57%, underperforming peers lost 4.99%.
  • Forward P/E of 20.49 trades at premium to 16.08 average.
  • Earnings miss on April 30, 2026 ($2.8) would be negative.
  • No recent Zacks EPS change removes upside catalyst.
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.
Somewhat Bullish +50

Jim Cramer on Cardinal Health: “I Want You to Buy It and Buy It, Get This, Aggressively”

📈 Shares rose 55% in a year, trading at $206 with strong recent revenue growth.

💊 Diversified health business includes medicine distribution and surgical products driving margins.

🛡 Hedge fund portfolios holding Cardinal Health increased to 60 by Q4 2026.

📣 Jim Cramer urged investors to "buy aggressively" Cardinal Health (CAH) during a CNBC interview despite his previous admission of entering the position too early for some trusts.

💊 The host highlighted Cardinal Health's diversified business model, which includes distributing branded and generic medicines alongside medical and surgical products.

📈 While Cramer predicted significant upside potential, he noted that Cardinal Health stock had "fallen really hard," creating an opportunity for buyers.

💰 Financial data indicates CAH shares closed at $206.40 on March 23, 2026, with a 52-week gain of 55.48% despite a -8.66% one-month return.

🏛 Brown Advisory's fourth-quarter 2025 investor letter credited Cardinal Health as a leading contributor to their Mid-Cap Growth Strategy.

⚖️ Cardinal Health delivered a strong fiscal first quarter according to the firm, driven by improved specialty mix and continued margin recovery in its Medical segment.

🤖 The article includes promotional content suggesting that AI stocks may offer greater upside potential than traditional healthcare plays like Cardinal Health.

📊 Hedge fund sentiment remains positive with 60 portfolios holding Cardinal Health at the end of Q4 2026, up from 55 in the prior quarter.

🔄 Fiscal second quarter revenue for Cardinal Health increased 19% year-over-year to reach $66 billion according to the article's data.

📉 Brown Advisory acknowledged their strategy lagged the Russell Midcap Growth Index in Q4 2025 due to not holding Palantir Technologies (PLTR).

📰 The article was originally published by Insider Monkey and references external reports on dividend stocks and hedge fund investor letters.

⚠️ Renaissance Investment Management's Large Cap Growth Strategy underperformed the S&P 500 in Q4 2025 due to market concentration in AI mega-cap tech companies.

Bullish Signals
  • Jim Cramer recommends Cardinal Health (CAH) as an amazing stock.
  • Target price projection reaches $300 following strong urology purchase catalyst.
  • Fiscal Q1 results driven early guidance increase with more upside.
  • Solid nuclear and home health demand supports margin recovery.
  • Hedge fund ownership grew from 55 to 60 portfolios in Q4.
  • F2026 revenue surged 19% YoY to $66 billion.
  • Stock gained 55.48% over the past 52 weeks.
Risk Factors
  • Cramer admits buying Cardinal Health too soon.
  • Stock fell hard during Cramer's discussion.
  • Brown Advisory lagged Q4 2025 due to selection issues.
  • Renaissance underperformed S&P 500 in Q4 2025.
  • Cardinal Health absent from top 40 hedge fund list.
  • One-month return was -8.66% as of March 23, 2026.
  • $48.569B market cap may reduce undervalued status.
Bullish Signals
  • Jim Cramer recommended Cardinal Health (CAH) for aggressive buying, describing it as an 'amazing stock' that has improved since their last discussion despite falling hard.
  • Cramer specifically highlighted the urology purchase as a major positive catalyst and projected the stock could rise to $300.
  • Fiscal first quarter results were strong enough to prompt an early guidance increase with further upside potential following the margin- and net-accretive Solaris acquisition.
  • Cardinal Health delivered solid demand in nuclear and home health segments with continued margin recovery in Medical operations.
  • Hedge fund ownership increased, rising from 55 portfolios in the previous quarter to 60 hedge fund portfolios holding the stock by the end of the fourth quarter.
  • Second quarter of fiscal 2026 revenue increased 19% year-over-year to $66 billion, demonstrating robust growth trajectory.
  • The stock has gained 55.48% over the past 52 weeks with a market capitalization of $48.569 billion.
Risk Factors
  • Jim Cramer admitted he 'got too enthusiastic' about Cardinal Health and bought it 'too soon for the trust,' indicating a potential misjudgment of entry timing despite his bullish stance.
  • The stock fell significantly ('fell really hard') during Cramer's discussion, suggesting volatility or downward pressure prior to his recommendation.
  • Brown Advisory Mid-Cap Growth Strategy lagged the Russell Midcap® Growth Index in Q4 2025 due to stock selection issues, potentially impacting exposure to Cardinal Health within that portfolio.
  • Despite being a top contributor for Brown Advisory, Renaissance Investment Management underperformed the S&P 500 and Russell 1000 Growth Index in Q4 2025, highlighting broader market weakness affecting growth strategies.
  • Cardinal Health was notably absent from the list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026, despite 60 portfolios holding it at Q4 end.
  • One-month return for Cardinal Health stood at -8.66% as of March 23, 2026, indicating recent significant price depreciation.
  • Market capitalization reached $48.569 billion, which may suggest the stock is becoming less undervalued compared to earlier claims.
Bullish +73

We're adding to an out-of-favor stock with limited exposure to Iran war upheaval

📈 Jim Cramer's trust buys more shares at $210, boosting holdings to 475.

💊 Major US pharma revenue limits exposure despite a recent 9% stock decline.

🚀 EPS expected to surge 25% due to rising GLP-1 medication sales.

🏛 Chairman Gregory Kenny retires immediately amid leadership changes unrelated to operations.

✅ Management remains confident in the 2026 outlook with earnings set for April 30.

📈 Jim Cramer's Charitable Trust is acquiring additional shares of Cardinal Health (CAH) at approximately $210 per share.

📊 The new purchase increases total holdings to 475 shares, raising the portfolio weight from around 2.5% to roughly 2.6%.

📉 CAH stock has declined about 9% since the onset of the Iran conflict, which the investment team views as an attractive entry point.

💊 The company generates majority revenue from distributing pharmaceuticals and healthcare products in the U.S., limiting geopolitical exposure.

🚀 EPS growth is forecasted at roughly 25% for the current fiscal year, driven partly by a surge in GLP-1 medication sales.

🏛️ Chairman Gregory Kenny is retiring effective immediately after 17 years on the board, replaced by director Patricia Hemingway Hall.

🔍 Management confirms the leadership change was personal and not due to any operational disagreements with Kenny.

💼 Kenny also resigned from Ingredion's board simultaneously, reinforcing that the departure was unrelated to Cardinal Health specifically.

✅ In an 8-K filing, Cardinal stated it remains confident in its fiscal 2026 outlook despite recent volatility.

📅 The company is scheduled to report its next earnings on April 30 to address investor concerns about potential slowdowns.

Risk Factors
  • Stock down 9% since Iran conflict started.
  • Board chairman Gregory Kenny retiring after 2007 tenure.
  • Concerns over earnings slowdown following leadership shift.
  • Company jumped gun too early on position.
Bullish Signals
  • Cardinal Health has pulled back roughly 9% since the start of the conflict with Iran, presenting a buying opportunity with limited exposure to geopolitical tensions.
  • With no real exposure to the war and earnings per share expected to grow roughly 25% in its current fiscal year, investors are encouraged to build up the position into its recent weakness.
  • Sales of GLP-1 medications have been a nice tailwind to its Pharmaceutical and Specialty Solutions business, adding 6 percentage points of revenue growth in the company's most recent quarter.
  • Cardinal Health remains confident in its fiscal 2026 outlook, which helps ease concerns regarding potential sudden earnings slowdowns from leadership changes.
  • The company will report earnings on April 30, providing a near-term catalyst for investors.
Risk Factors
  • The stock has already pulled back roughly 9% since the start of the conflict with Iran, indicating recent weakness.
  • A sudden retirement from board chairman Gregory Kenny, who had been on the board since 2007 and chair since 2018, can be unsettling to investors.
  • While the company expressed confidence in its fiscal 2026 outlook, this follows concerns of a potential sudden earnings slowdown triggered by the leadership change.
  • The article notes that they may have 'jumped the gun too early' on the position, suggesting timing risks were taken before full validation of the investment thesis.
Slightly Bullish +25

We're buying more shares of a company immune from the Iran war uncertainty

📈 Jim Cramer's trust buys more Cardinal Health shares at $214 each.

💼 Holdings rise to 450 shares, increasing portfolio weight to 2.55%.

🛡 CAH is favored as a domestic-only play immune to regional conflicts.

⚖ Management confirms commodity spikes won't impact FY2026 earnings meaningfully.

📈 Jim Cramer's Charitable Trust is purchasing additional shares of Cardinal Health (CAH) at approximately $214 each following Wednesday's trade.

💼 The charitable trust will increase its holdings to 450 shares, raising the stock's portfolio weighting from 2.27% to 2.55%.

🛡️ CAH is favored because it generates nearly 100% of its revenue within the United States, making it immune to geopolitical tensions related to the Iran conflict.

⛽ Recent oil price spikes and Middle East uncertainty caused energy stocks to sell off, driving a S&P 500 decline of more than 0.5%.

📉 The health care sector has been the second-worst-performing sector this month due to concerns over geopolitical impacts on economic growth.

🛑 Cardinal Health's stock sentiment has soured following announcements that two major competitors, McKesson and Cencora, announced their CFOs' retirements.

🤲 Management reassured analysts at Leerink that recent commodity spikes will be immaterial to the company's fiscal year 2026 earnings.

📉 The S&P Short Range Oscillator momentum indicator remains technically oversold at -5.18%, suggesting potential market rebound opportunities.

🕒 Trade executions by Jim Cramer follow specific timing rules, such as waiting 45 minutes after sending trade alerts before making moves in the charitable trust.

🔄 Previous investments included buying several times since the war's breakout despite early mistakes starting the position slightly too soon.

Bullish Signals
  • 100% US revenue shields Cardinal Health from geopolitical risk.
  • Commodity spikes deemed immaterial to Cardinal's FY2026 earnings.
  • Trust boosts Cardinal position due to war uncertainty insulation.
  • Cencora reaffirms full-year EPS adjusted guidance easing concerns.
Risk Factors
  • Healthcare ranks second-worst sector amid geopolitical growth fears.
  • Two drug distributor CFOs retired signaling leadership instability.
  • Entry point deemed suboptimal after admitting starting too early.
  • Trading delays of 45 mins or 72 hrs may miss opportunities.
  • Cardinal Health's 100% US revenue limits diversification against domestic risks.
Bullish Signals
  • Cardinal Health generates nearly 100% of its revenue within the United States, making it immune to geopolitical tensions and energy price volatility caused by Middle East conflict.
  • Management told analysts at Leerink that recent commodity spikes will be immaterial to fiscal year 2026 earnings despite rising oil prices.
  • The company offers insulation from war-related uncertainty, prompting the Charitable Trust to increase its position weighting from 2.27% to 2.55% following Wednesday's trade.
  • Cencora reaffirmed its full-year earnings per share (EPS) adjusted guidance range on Tuesday, easing concerns about an impending shortfall after CEO and CFO announcements.
Risk Factors
  • Healthcare is the second-worst-performing sector in the market this month, raising concerns about defensive groups failing to perform well when geopolitical tensions impact economic growth.
  • Sentiment in the drug distributor group has soured after not one, but two finance chiefs announced their retirement (McKesson's CFO on March 5 and Cencora's CFO on March 17), indicating potential leadership instability.
  • The investment strategy involves building up a position despite acknowledging the mistake of 'starting a little too early,' suggesting the current entry point may be suboptimal.
  • Jim Cramer's Charitable Trust execution rules create delays in trading—waiting 45 minutes after trade alerts and 72 hours if discussed on CNBC—which could result in missing immediate market opportunities or reacting to news already priced in.
  • Cardinal Health's insulation from geopolitical tensions relies heavily on generating nearly 100% of its revenue within the United States, which may limit diversification benefits if domestic conditions deteriorate.
Bullish +75

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

Cardinal Health is valued attractively with low PEG and superior P/CF ratios versus peers.

Analysts forecast robust growth, projecting quarterly EPS of $2.33 and revenue of $64.3B.

The stock holds a Zacks "Buy" rank #2 with an overweight consensus rating.

- 📈 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
  • Stock surged +1.25%, outperforming the S&P 500.
  • Analysts forecast EPS of $2.33 for Q4 2026.
  • Quarterly revenue projected to reach $64.33 billion.
  • Full-year earnings estimated at $9.93 per share.
  • Zacks Rank #2 signals strong analyst confidence.
  • Stock holds an 'A' grade for Value.
  • Forward P/E of 15.48 trades below industry average.
  • PEG ratio of 1.24 underlines strong growth potential.
  • P/CF ratio of 15.27 reflects attractive cash outlook.
  • Analysts rate CAH 'overweight' with $252.60 target.
Risk Factors
  • Stock trades $41 below analyst targets, implying over 20% downside potential.
  • Forward P/E of 15.48 shows high volatility between 13.69 and 20.15.
  • Lower current P/E suggests market anticipates weaker performance or correction.
  • Rapid re-rating risk exists if earnings miss premium analyst expectations.
  • Stock recently returned to median valuation, ending a deep discount period.
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.
Bullish +75

IBD Stock Of The Day: Why Cardinal Health's Momentum Is 'Special' — And Not Over Yet - Investor's Business Daily

📊 Cardinal Health raised FY 2026 adjusted earnings guidance to at least $10 per share.

💰 The company expects over $50 billion in specialty products sales for fiscal 2026.

🚀 Shares jumped 3% on momentum as analysts project continued upside in pharma and diabetes segments.

⚖ Cardinal Health navigates IRA price cuts while expanding its national distribution network.

📈 The stock holds a Relative Strength Rating of 90, ranking in the top 10%.

📊 Cardinal Health (CAH) is featured as Investor's Business Daily's Stock of the Day, highlighted for its special momentum in the biopharma industry.

💰 The company raised fiscal year 2026 guidance for adjusted earnings to "at least $10" per share, surpassing the previous expectation of $9.65 to $9.85.

📈 Leerink Partners analyst Michael Cherny described the stock's momentum as special and stated that the company is not done delivering positive results.

🚀 Shares jumped nearly 3% on January 13 following the earnings guidance increase, reflecting confidence in ongoing upside drivers.

💊 Cardinal Health expects its specialty products business to generate over $50 billion in sales during fiscal year 2026, which ends June 30.

🧬 Analysts note that the company is investing deeply in its specialty portfolio, specifically targeting oncology, autoimmune, and urology segments.

🚚 The company expanded its at-home business focusing on diabetes care and wearable devices like continuous glucose monitors following the $1.1 billion acquisition of Advanced Diabetes Supply Group.

🤝 Cardinal Health confirmed it has successfully navigated contracting with major pharmaceutical companies to mitigate impacts from price cuts under the Inflation Reduction Act.

🏢 JPMorgan analysts highlighted the expansion of Cardinal's national distribution network with 11 centers designed to scale capacity for continued growth.

⚖️ The stock currently has a Relative Strength Rating of 90, placing its 12-month performance in the top 10% of all stocks on MarketSurge.

📉 While shares recently traded below the January 15 buy point of $214.93, they are rebounding off their 21-day exponential moving average.

👨‍💼 Michael Cherny reiterated an outperform rating, citing confirmed guidance increases and room to grow as evidence of strong performance under current leadership.

🔮 Leerink Partners projects fiscal year 2026 earnings between $11.08 and $11.28 per share, driven primarily by the pharmaceutical business segment.

Bullish Signals
  • CAH named 'IBD Stock Of The Day' for strong momentum.
  • Raised FY26 EPS guidance to at least $10 per share.
  • Specialty sales forecasted to exceed $50 billion in FY26.
  • Analysts project FY26 earnings could reach $11.08-$11.28 per share.
  • JPMorgan expects above-trend revenue growth in specialty oncology segments.
  • At-Home Solutions expected to hit $1B sales by FY28.
  • Expanded distribution network with 11 centers to scale capacity.
  • Successfully navigated IRA pricing impacts on distributor concerns.
  • Akquired Advanced Diabetes Supply Group for $1.1 billion.
  • Ratings score of 90 places CAH in top 10%.
Risk Factors
  • Shares fell below $214.93 breakout level.
  • FY26 guidance raised only 2%.
Bullish Signals
  • Cardinal Health (CAH) received 'IBD Stock Of The Day' recognition, indicating strong technical momentum and positive market sentiment.
  • The company raised its guidance for fiscal year 2026 adjusted earnings to at least $10 per share, up from a previous expectation of $9.65-$9.85.
  • Specialty products are forecasted to generate more than $50 billion in sales during fiscal year 2026, signaling sustained demand and growth potential.
  • Analyst Michael Cherny projects fiscal year 2026 earnings could reach $11.08-$11.28 per share, driven largely by the pharma business.
  • JPMorgan analysts highlight deep investment in specialty segments including oncology, autoimmune, and urology with expectations for above-trend revenue growth.
  • The at-Home Solutions business is forecast to bring in $1 billion in fiscal year 2028 sales, representing a 20% CAGR with significant 30% growth projected for 2026.
  • Cardinal Health has expanded its national network of 11 distribution centers to scale capacity for continued at-home solution growth.
  • The company successfully navigated contracting challenges under the Inflation Reduction Act, easing concerns about pricing impacts on distributors.
  • Acquisition of Advanced Diabetes Supply Group for $1.1 billion and a partnership with Publix are strengthening the at-home business focused on diabetes care.
  • Cardinal Health achieved a strong Relative Strength Rating of 90, placing its 12-month performance in the top 10% of all stocks.
Risk Factors
  • Cardinal Health shares have recently fallen below the technical breakout buy point of $214.93, indicating a failed attempt to break out from its flat base pattern.
  • The company raised its fiscal year 2026 earnings guidance by only 2.5%, which suggests limited upside potential from what was already expected by analysts.