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Dublin, Ohio-based Cardinal Health, Inc. (CAH) is a manufacturer, distributor and provider of pharmaceuticals, medical & laboratory products, and performance & data solutions for healthcare facilities. With a market cap of $28.6 billion, Cardinal’s operations span over 30 countries, employing over 48,000 people across the globe.
Companies worth $10 billion or more are generally described as "large-cap stocks," Cardinal Health fits this bill perfectly. Given the company’s extensive global operations, its valuation above this mark is not surprising. It focuses on bringing out scaled solutions that navigate the complexities of the healthcare sector.
Cardinal recently touched its all-time high of $126.23 on Dec. 4 and is currently trading 6.4% below that peak. CAH stock has gained 4.4% over the past three months, lagging behind the Dow Jones Industrials Average’s ($DOWI) 5.9% gains during the same time frame.
Over the longer term, Cardinal’s performance looks even grimmer. CAH stock has gained 17.2% on a YTD basis and 9.3% over the past year, compared to DOWI’s 16.3% gains in 2024 and 18.2% returns over the past 52 weeks.
To confirm the recent uptrend, CAH has been trading above its 50-day moving average since late July and above its 200-day moving average since mid-August with some notable fluctuations.
Cardinal Health’s stock prices surged over 7% after the release of its impressive Q1 results on Nov. 1. While the company’s revenues took a slight hit due to the expiration of OptumRx contracts, its revenues excluding OptumRx skyrocketed 15.2% year-over-year to $52.3 billion, which surpassed Wall Street’s expectations by a notable 2%. Furthermore, the company also observed an impressive growth in profitability, with its non-GAAP operating earnings surging 12.2% year-over-year to $625 million, driven by the notable gains from the Pharmaceutical and Specialty Solutions segment. Meanwhile, its adjusted non-GAAP EPS grew by 9.3% compared to the year-ago quarter to $1.88, which surpassed analysts’ estimates by 14.6%, boosting investors’ confidence.
Cardinal Health has outpaced its peer Cencora, Inc.’s (COR) 13.1% gains on a YTD basis while underperforming COR’s 14% returns over the past year.
Among the 15 analysts covering the CAH stock, the consensus rating is a “Moderate Buy.” The mean price target of $129.75 represents a 9.9% premium to current price levels.
