Cardinal Health Shows Promise Amid Mixed Performance in Market
At a market capitalization of $30.3 billion, Cardinal Health, Inc. (CAH) specializes in healthcare services and products. Based in Dublin, Ohio, the company distributes a variety of pharmaceutical and medical supplies to healthcare providers, pharmacies, and manufacturers worldwide.
Recent Stock Performance
Over the last 52 weeks, CAH’s stock has lagged behind the overall market. While CAH has increased by 19.4%, the S&P 500 Index ($SPX) has surged 35.7%. In 2024, CAH shares gained 24.3%, fairly close to the SPX’s 25.5% increase year-to-date.
Despite this underperformance, CAH stock has surpassed the Health Care Select Sector SPDR Fund’s (XLV) 15.6% rise over the past year and a 7.7% increase year-to-date.
Strong Q1 Results Boost Confidence
On November 1, CAH shares jumped 7% following strong Q1 2025 results. The company reported an adjusted EPS of $1.88 and revenues of $52.3 billion. Additionally, Cardinal Health raised its fiscal 2025 earnings guidance, projecting adjusted EPS between $7.75 and $7.90, exceeding earlier estimates. This performance, particularly in its Pharmaceutical and Other segments, enhanced investor confidence.
For the current fiscal year ending in June 2025, analysts anticipate CAH’s EPS to grow nearly 4% year-over-year to $7.83. Notably, the company has a strong history of earnings surprises, having outperformed consensus estimates in the last four quarters.
Analyst Ratings Highlight Opportunities
Among 15 analysts covering CAH stock, the consensus rating stands at “Moderate Buy.” This includes five “Strong Buy” ratings, one “Moderate Buy,” eight “Holds,” and one “Strong Sell.”
Morgan Stanley analyst Erin Wright maintained a “Buy” rating on November 13, setting a price target of $127. She highlighted the company’s strategic acquisitions of GI Alliance and Advanced Diabetes Supply Group, which are expected to fuel revenue and profit growth.
As it stands, CAH shares are trading above the average price target of $124.31, with a Street-high price target of $139, indicating a modest potential upside of 10.9% from current levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
