The article analyzes Cardinal Health (NYSE:CAH) as an investment candidate characterized by its strong profitability and recent earnings growth, contrasting it with higher-risk "story stocks" that lack revenue. Over the past year, Cardinal Health's earnings per share (EPS) increased significantly from US$5.41 to US$7.06, representing a 31% gain. While the company has achieved impressive EPS growth over the last three years starting from a low point, the analysis suggests focusing on more recent performance metrics rather than historical averages for future expectations.
Financial metrics indicate that Cardinal Health maintained relatively stable earnings before interest and tax (EBIT) margins over the last year while achieving a 10% revenue increase to US$245 billion. The article highlights insider ownership as a positive signal, noting that company insiders hold US$44 million worth of shares, which accounts for approximately 0.09% of the company but demonstrates alignment between management and shareholder interests. However, the text notes that there are two warning signs for Cardinal Health that investors should consider before making an investment decision.
The analysis concludes that while relying solely on past performance has its limitations, Cardinal Health exhibits raw earnings growth rates that suggest a business worthy of further research, particularly for growth investors valuing solid EPS expansion and insider confidence. The article ultimately presents Cardinal Health as one of several US stocks with promising growth potential and insider conviction, advising readers to review detailed charts and interactive analyst forecasts available through Simply Wall St while emphasizing that the content is general commentary and not financial advice.
🏥 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.
Cardinal Health (CAH) shares closed the session at $215.13, rising 1.11% despite underperforming the broader market, which saw the S&P 500 gain 2.51%, the Dow rise 2.85%, and the Nasdaq climb 2.8%. Over the past month, CAH stock has declined by 1.97%, a better performance than the Medical sector's 1.97% loss but worse than the S&P 500's slight decline of 1.66%, while trailing the broader index compared to the sector average which dropped 5.12%.
Market attention is focused on Cardinal Health's upcoming earnings release scheduled for April 30, 2026. Analysts project quarterly earnings per share (EPS) of $2.8, representing a 19.15% increase year-over-year, with revenue estimates at $62.42 billion, up 13.74% from the same quarter last year. On a full-year basis, Zacks Consensus Estimates forecast earnings of $10.31 per share and revenue of $259.27 billion, projecting year-over-year growth of 25.12% and 16.48%, respectively. The consensus EPS estimate has remained stagnant over the past month, and the stock currently holds a Zacks Rank of #2 (Buy).
Valuation metrics indicate Cardinal Health is trading at a Forward P/E ratio of 20.63, which reflects a premium compared to the industry average of 15.09. The PEG ratio stands at 1.37, slightly lower than the Medical - Dental Supplies industry average of 1.74. The industry itself holds a Zacks Industry Rank of 74, placing it within the top 31% of all industries among more than 250 groups. Research suggests that the top half of rated industries historically outperform the bottom half by a factor of 2 to 1, with Cardinal Health currently carrying a buy rating on the Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell).
📈 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.
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.
Cardinal Health Inc. (CAH) shares climbed 1.11% to reach $215.13 on Wednesday, marking the stock's second consecutive day of gains. The performance occurred amid a broadly positive trading session in the broader market, with the S&P 500 Index rising 2.51% to close at 6,782.81 and the Dow Jones Industrial Average advancing 2.85% to 47,909.92. Despite the upward movement and positive momentum continuing from the previous session, Cardinal Health continues to underperform the wider market index as indicated by the headline.
The article reports the specific intraday price action without detailing other financial metrics such as volume or earnings reports for this period. Data regarding the trade values provided in the text is sourced from FACTSET, with historical and current end-of-day data also supplied by that provider. All stock quotes referenced reflect local exchange time, while real-time last sale data for U.S. stocks specifically captures trades reported through Nasdaq only. The intraday data included is noted as potentially delayed by at least 15 minutes or in accordance with individual exchange requirements.
The summary reflects information from a MarketWatch report published on April 8, 2026, at 4:48 p.m. ET. While the text mentions world-class market data from Dow Jones and partnerships with Automated Insights for content delivery, these elements relate to the article's production and data sourcing rather than Cardinal Health's specific corporate activities or financial outlook. No other operational details or future projections regarding CAH are contained in the provided source text.
📈 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.
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.
Cardinal Health reported a significant increase in median worker pay in its latest executive compensation disclosure, noting that the total compensation for its median employee rose to $72,657, representing a 29% jump from $56,119 in the prior year. This shift contributed to a notable narrowing of the pay gap between the CEO and the average workforce; while CEO Jason Hollar received $19 million in total compensation for fiscal 2025, which included a $1.5 million salary, $13.4 million in stock awards, and a $3.6 million bonus, the ratio of his pay to the median employee’s pay decreased from 457:1 the previous year to 261:1 currently. The company also disclosed that total revenue decreased by 2% in fiscal 2025, which concluded on June 30, 2025, primarily due to the expiration of pharmaceutical distribution contracts affecting its pharmaceutical segment, while its medtech business maintained a 2% year-over-year sales growth. Cardinal Health’s Global Medical Products and Distribution segment ranked as the world’s 12th-largest medical device business by revenue in the company's 2025 Medtech Big 100 ranking.
Compensation figures for other top executives also showed mixed results influenced by adjustments to the company’s severance plan. CFO Aaron Alt received $6.2 million in total compensation for fiscal 2024, down 8.8% from $6.8 million the prior year, while Pharmaceutical and Specialty Solutions Segment CEO Deborah Weitzman earned $5.5 million, an 8% increase over $5.1 million previously. Chief Legal and Compliance Officer Jessica Mayer saw her compensation rise to $4.9 million from $4.7 million, though Global Medical Products and Distribution Segment CEO Stephen Mason experienced a sharp decline in pay to $4.7 million, a 36% drop from $7.3 million, due to the severance plan changes that reduced reported values for certain stock awards. The company stated that recruiting and retaining top talent is crucial in the medtech industry, but these specific compensation details are typically kept secret except when mandated by SEC disclosure rules.
Additional context provided includes a breakdown of specific compensation components for the executive team. For instance, CEO Jason Hollar’s package included $500,683 in other compensation, with most being attributed to personal use of corporate aircraft valued at $445,557. CFO Aaron Alt received $57,796 in other compensation, while Deborah Weitzman and Jessica Mayer each had approximately $30,000 in other compensation categories. All total compensation figures include company-paid portions of health insurance premiums not required in executive summaries. Investor sentiment regarding these pay practices was positive, as shareholders overwhelmingly voted in support of the company’s executive pay policies at its annual meeting on November 5, 2025. Cardinal Health noted that while the median employee is a non-exempt, full-time U.S. worker, specific job titles were not disclosed to comply with reporting standards that vary across the industry.
💰 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.
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.
📉 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.
Jim Cramer appeared on the latest episode of his show to discuss Cardinal Health, Inc. (NYSE:CAH), advising viewers to buy the stock aggressively amid concerns over rising energy costs and economic uncertainty. During a segment featuring caller Jason Hollar, who had previously recommended the company after its urology purchase, Cramer expressed strong enthusiasm for CAH, noting that he himself has started buying shares and believes the stock is "amazing" having fallen significantly from previous highs. Cramer suggested that Cardinal Health could reach a price point of $300 per share, citing no fundamental issues with the business and indicating it may be performing better than in previous discussions.
Institutional investors have also recognized Cardinal Health's strength, with Brown Advisory highlighting it as a leading contributor in its Mid-Cap Growth Strategy for the fourth quarter of 2025. According to the firm’s investor letter, Cardinal Health delivered a strong fiscal first quarter driven by improved specialty mix in pharmaceuticals, solid demand in nuclear and home health sectors, and continued margin recovery in its medical division. The company raised guidance early, with Brown Advisory noting further upside potential linked to the Solaris acquisition, which they describe as margin- and net-accretive. Financial data indicates that on March 23, 2026, Cardinal Health stock closed at $206.40 per share, having gained 55.48% over the past 52 weeks despite a one-month return of -8.66%. The company operates with a market capitalization of $48.569 billion, distributing branded and generic medicines while providing pharmacy services and manufacturing surgical products.
Hedge fund holdings reflect modest but positive sentiment toward Cardinal Health, with 60 hedge fund portfolios holding shares at the end of the fourth quarter compared to 55 in the previous quarter, up from a lower count prior. While Renaissance Investment Management reported that its Large Cap Growth Strategy underperformed due to market concentration in mega-cap technology companies during the fourth quarter of 2025, it acknowledged that healthcare distribution trends remained resilient. However, Insider Monkey and other sources note that while CAH is viewed as an investment with potential, certain AI stocks are currently seen as offering greater upside potential with less downside risk, particularly within a broader strategy focusing on undervalued positions benefiting from tariff policies and onshoring trends.
📈 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.
Jim Cramer's Charitable Trust is increasing its position in Cardinal Health (CAH) by purchasing an additional 25 shares at approximately $210 per share. This trade follows Wednesday's market activity, raising the trust's total holdings to 475 shares and adjusting the stock's weighting from around 2.5% to roughly 2.6%. The investment thesis centers on Cardinal Health being an out-of-favor stock with minimal exposure to geopolitical risks, specifically noting that the company makes most of its revenue distributing branded and generic pharmaceuticals, specialty drugs, and over-the-counter consumer products in the United States. Consequently, the trust believes the stock has oversold itself, having dropped about 9% since the onset of the Iran conflict, which limits meaningful upside impact from that macro trend.
Beyond geopolitical stability, Cardinal Health is supported by strong growth fundamentals, particularly in its Pharmaceutical and Specialty Solutions business. Sales of GLP-1 medications have provided a significant tailwind, contributing an additional 6 percentage points to revenue growth in the most recent quarter. With earnings per share expected to increase roughly 25% in the current fiscal year, the trust views the recent price weakness as an opportunity to build the position. The company recently announced that Gregory Kenny, who joined the board in 2007 and became chairman in 2018, is retiring effective immediately to be replaced by director Patricia Hemingway Hall. While sudden board changes can unsettle investors, Cardinal stated this decision was not tied to disagreements over operations or policies, and Kenny's simultaneous resignation from Ingredion suggests a personal reason for his departure.
Despite the leadership transition, Cardinal Health reaffirmed its confidence in its fiscal 2026 outlook in an 8-K filing, aiming to ease investor concerns regarding a potential earnings slowdown following Kenny's exit. The company is scheduled to report earnings on April 30. As a subscriber to the CNBC Investing Club with Jim Cramer, members receive trade alerts before Jim executes trades for his charitable trust. Jim adheres to specific timing rules: waiting 45 minutes after a trade alert and 72 hours if he has discussed the stock on CNBC TV before purchasing or selling. The article concludes with standard disclaimers noting that no fiduciary obligation exists between the publisher and the reader, outcomes are not guaranteed, and data provided is subject to terms of use regarding market data delays.
📈 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.
✅ 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.
Jim Cramer's Charitable Trust is increasing its stake in Cardinal Health (CAH) by purchasing an additional 50 shares at approximately $214 per following Wednesday's trading activity. This transaction brings the charitable trust's total holdings of CAH to 450 shares, raising the company's weighting in the portfolio from 2.27% to 2.55%. The investment decision is driven by the stock's perceived immunity to geopolitical risks stemming from the ongoing conflict in the Middle East, specifically citing that Cardinal Health generates nearly 100% of its revenue within the United States.
The broader market context features significant uncertainty regarding the potential escalation of the Iran war, with energy prices rising—Brent international crude nearing a high since July 2022 and West Texas Intermediate hovering around $100 per barrel—which has contributed to an S&P 500 decline of more than 0.5%. Cramer's Charitable Trust views the market as technically oversold, with the S&P Short Range Oscillator momentum indicator at minus-5.18%, well below the minus-4% threshold, suggesting a potential rebound on positive news. While the healthcare sector has underperformed this month despite defensive expectations, management from Cardinal Health recently reassured analysts at Leerink that commodity spikes will be immaterial to its fiscal year 2026 earnings.
The investment rationale acknowledges that sentiment in the drug distributor group has soured due to consecutive CFO retirements at McKesson on March 5 and Cencora on March 17, though these events are considered coincidental rather than a red flag. This was further supported by Cencora reaffirming its full-year earnings per share adjusted guidance range. Although Cardinal Health started as an earlier purchase that the trust acknowledges was made slightly early, the team is continuing to add to the position on weakness because of its insulation from overseas geopolitical tensions. Jim Cramer notes specific trading protocols for subscribers to his CNBC Investing Club, including waiting 45 minutes after a trade alert or 72 hours if the stock has been discussed on CNBC TV before executing trades in the charitable trust portfolio.
📈 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.
📈 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.
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.
Cardinal Health (CAH) is featured as the Investor's Business Daily Stock of the Day, highlighted for its strong technical momentum and positive business developments. The company, a major drug wholesaler serving pharmacies, hospitals, and clinics, recently raised its guidance for fiscal year 2026, projecting adjusted earnings of "at least $10" per share, up from the previous expectation of $9.65 to $9.85. Analyst Michael Cherny at Leerink Partners praised this guidance increase as a confirmation of ongoing upside drivers, noting that even accounting for the uptick, there remains significant potential with the higher earnings floor.
Key growth drivers include deep investment in Cardinal's specialty business, particularly in oncology and autoimmune therapies, where it expects above-trend revenue growth to continue through fiscal 2028 with a forecasted sales figure of $1 billion. This specialty segment is expected to grow at a 30% compound annual rate in 2026 alone. Additionally, Cardinal is expanding its at-home business, specifically focusing on diabetes care and wearable devices like continuous glucose monitors, bolstered by a partnership with grocery chain Publix and the recent $1.1 billion acquisition of Advanced Diabetes Supply Group.
Analysts also view Cardinal's ability to navigate pricing pressures under the Inflation Reduction Act favorably. While pharmaceutical companies face price negotiations that could impact their sales, Cardinal's diversified model and strong relationships help mitigate concerns about how distributors will be affected by drug price cuts. Technical analysis supports this bullish outlook, with the stock showing a relative strength rating of 90 and recent performance placing it in the top 10% over its 12-month history, though shares have recently dipped below a specific buy point at $214.93 following their rise off the 21-day exponential moving average.
📊 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.
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.
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.
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.
Your Privacy
We use cookies to:
Deliver and maintain our services, protect against spam, fraud and abuse
Measure audience engagement and site statistics to understand how our services are used (Google Analytics)
Remember your quiz progress and tailor the knowledge base to your skill level (optional)
You can accept all cookies or configure your preferences. You can change them at any time via the "Manage Cookies" link in the footer.
Manage cookie preferences
Necessary cookiesAlways active
Required for the website to function. These cannot be disabled.
Cookie
Purpose
Duration
PHPSESSID
Session identifier for login, security tokens, and site functionality
Session
cookie_consent
Stores your cookie preferences
1 year
Analytics cookies
Help us understand how visitors interact with our website using Google Analytics. These cookies collect information anonymously.
Cookie
Purpose
Duration
_ga
Distinguishes unique visitors (Google Analytics)
2 years
_ga_*
Maintains session state (Google Analytics)
2 years
Personalization cookies
Remember your quiz progress and work out your investing level so we can recommend knowledge-base articles and the right reading depth for you. Stored only on your device.
Cookie
Purpose
Duration
bes_user_level
Your quiz-derived investing level, used to tailor content
