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Headquartered in Dublin, Ohio, Cardinal Health, Inc. (CAH) is a healthcare services and products company known for its dedication to improving the cost-effectiveness and quality of healthcare delivery. Valued at $24.52 billion by market cap, Cardinal Health plays a crucial role in the healthcare supply chain, offering innovative solutions in pharmaceuticals, medical products, and supply chain management.
CAH’s shares have significantly underperformed the broader market over the past 52 weeks. The stock has surged 9.5% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 19.6%. Also, in 2024, shares of CAH are marginally down compared to SPX's 12% gains on a YTD basis.
Zooming in further, CAH has outpaced the S&P Healthcare Services SPDR’s (XHS) 2.8% gains over the past 52 weeks but lags behind the exchange-traded fund’s return of about 6.8% on a YTD basis.
Cardinal Health's stock experienced a slight increase following its stronger-than-expected Q3 earnings report on May 2 and an improved profit forecast for 2024, thanks to strong demand for specialty drugs despite missing revenue estimates. However, the stock fell by about 4% as the preliminary outlook for fiscal year 2025 came in below analysts' expectations. This weaker future guidance overshadowed the positive quarterly results, leading to a decline in the stock price.
For the current fiscal year, ending in June 2025, analysts expect CAH’s EPS to grow by 2.7% to $7.55. The company's earnings surprise history is promising. It beat the consensus estimate in each of the last four quarters.
Among the 15 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on five “Strong Buy” ratings, one “Moderate Buy,” eight “Holds,” and one “Strong Sell.”
On Jul. 11, Wells Fargo analyst Steve Baxter maintained a “Sell” rating on Cardinal Health with a price target of $95, which indicates that the stock trades at a premium.
The mean price target of $112.36 represents a premium of 11.6% to CAH’s current levels. The street-high price target of $130 implies that the stock could rally 29.1%.
On the date of publication, Rashmi Kumari 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.
