Is Wall Street Bullish or Bearish on Cardinal Health Stock?

Valued at a market cap of $30.3 billion, Dublin, Ohio-based Cardinal Health, Inc. (CAH) is a healthcare services and products company. The company provides distribution services and manufactures a wide range of pharmaceutical and medical products, serving healthcare providers, pharmacies, and manufacturers across the globe.

Shares of the prescription drug distributor have underperformed the broader market over the past 52 weeks. CAH has risen 19.4% over this time frame, while the broader S&P 500 Index ($SPX) has gained 35.7%. In 2024, CAH stock surged 24.3%, compared to SPX's 25.5% YTD gain.

However, CAH stock has outperformed the Health Care Select Sector SPDR Fund's (XLV) 15.6% rise over the past 52 weeks and a 7.7% increase on a YTD basis.

www.barchart.com

Shares of Cardinal Health surged 7% on Nov. 1 due to stronger-than-expected Q1 2025 results, with adjusted EPS of $1.88 and revenue of $52.3 billion. The company raised its fiscal 2025 earnings guidance, projecting adjusted EPS between $7.75 and $7.90, above previous estimates. Additionally, the company reported solid performance in its Pharmaceutical and Other segments, including robust growth in OptiFreight Logistics, boosting investor confidence.

For the current fiscal year, ending in June 2025, analysts expect CAH's EPS to grow nearly 4% year-over-year to $7.83. The company's earnings surprise history is promising. It beat the consensus estimates in 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.”

www.barchart.com

On Nov. 13, Morgan Stanley analyst Erin Wright maintained a “Buy” rating on Cardinal Health with a price target of $127, citing the company's strategic acquisitions of GI Alliance and Advanced Diabetes Supply Group, which are expected to drive revenue and profit growth. 

As of writing, CAH is trading above the mean price target of $124.31. The Street-high price target of $139, implies a modest potential upside of 10.9% from the current price levels. 

More news from Barchart

• 3 Nuclear Energy Stocks to Scoop Up Now for Long-Term Upside
• Procore Technologies Sees Surge in Unusual Options Activity: A Trifecta of Bets
• 3 Reasons to Buy Cisco Stock After 1Q Earnings
• Luminar Stock: Buy, Sell, or Hold After Earnings?

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.