Are Wall Street experts positive about Cardinal Health's stock value?
Cardinal Health Inc. (CAH), a leading healthcare services and products company, is looking at a positive outlook for the next couple of years. The company, which specialises in pharmaceutical distribution and medical supply manufacturing, has shown resilience and growth in the healthcare sector.
Recent Developments and Analyst Predictions
The Cardinal Health Foundation has recently invested $5 million in the expansion of the Equity Rx program, a move that signals the company's commitment to improving healthcare accessibility [1].
Analysts have a generally positive outlook for CAH. The average twelve-month price target is around $158.07, with some forecasts as high as $190.00. Technical forecasts expect an 11.76% rise over the next 3 months, with a price range between $174.89 and $193.78 [2].
Among 18 tracked analysts, 14 rate Cardinal Health as "buy", with 4 holds and no sell ratings, reflecting a consensus of confidence in the stock’s near to mid-term prospects [3][4]. Morgan Stanley reiterated its "Overweight" rating for CAH, signaling continued confidence in the company's growth prospects [6]. On July 16, Morgan Stanley raised its price target for Cardinal Health from $181 to $190 [7].
Financial Performance and Growth Expectations
Cardinal Health reported a strong Q4 with adjusted EPS of $2.08, above estimates, though revenue slightly missed expectations ($60.16B vs. $60.92B). For fiscal 2026, the company’s adjusted EPS forecast increased to a range of $9.30 to $9.50, implying a 13% to 15% growth. All five operating segments are showing double-digit profit growth, signaling robust operational execution [4].
Earnings and revenue are forecast to grow at about 9.9% and 8.2% per year, respectively, through upcoming years with EPS growth around 11.6% annually, indicating steady but moderate long-term growth [5].
Stock Technicals and Market Sentiment
The stock is currently trading below some moving averages (50-day SMA at $159.72, above current price), with a bearish short-term sentiment and a Fear & Greed index pointing toward "Fear" (39). However, recent price action shows positive days exceeding negative ones (16 green days out of 30) [1]. The beta of 0.67 suggests relatively lower volatility than the overall market, which can appeal to investors seeking stability albeit limiting outsized returns [3].
CAH's Performance in the Market
CAH has outpaced the S&P 500 Index's 21.9% gains over the past year, and the company's market cap is currently $37.4 billion [8]. The consensus rating for CAH stock is a "Strong Buy." CAH shares have soared 53.9% over the past 52 weeks [9].
Investment Implications
Investors may view current price levels as an opportunity given the projected gains and the company’s resilience in the healthcare sector. However, it's essential to note that the current market sentiment is somewhat bearish and the stock exhibits near-term volatility.
Disclaimer
All information and data in this article are solely for informational purposes. Kritika Sarmah did not have positions in any of the securities mentioned in the article. For more information, view the website's Disclosure Policy here.
Sources
- Yahoo Finance
- Seeking Alpha
- MarketWatch
- Business Wire
- Zacks Investment Research
- MarketWatch
- Seeking Alpha
- MarketWatch
- Yahoo Finance
- Given the $5 million investment by the Cardinal Health Foundation in the Equity Rx program and analysts' positive outlook, there may be opportunities for investing in Cardinal Health Inc. (CAH) to support improving healthcare accessibility.
- As CAH showcases double-digit profit growth in all five operating segments, one might consider investing in this technology-driven business that specializes in finance, investing, and business within the healthcare sector.
