Cardinal Health Stock Accelerates Past Market: Key Metrics Investors Should Track

Cardinal Health (CAH) shares gained momentum in the latest session, rising 1.93% to settle at $202.95—outpacing the broader S&P 500’s 0.88% advance. The Dow climbed 0.38% while the tech-focused Nasdaq added 1.31%. However, this recent strength masks a challenging month for the healthcare distributor, which has declined 4.23% over the past 30 days, underperforming the Medical sector’s 1.2% gain and lagging the S&P 500’s 2.48% appreciation.

Earnings Outlook: Strong Growth Trajectory Ahead

The forthcoming earnings announcement will be crucial for investors evaluating CAH’s momentum. Wall Street consensus forecasts the company will report quarterly EPS of $2.31, representing a robust 19.69% increase year-over-year. Revenue expectations stand even more impressive at $64.07 billion, reflecting a 15.94% surge compared to the same quarter last year.

For the full fiscal year, analyst consensus points to earnings per share of $9.86 and total revenue of $258.58 billion—both signaling significant growth, with earnings advancing 19.66% and revenue climbing 16.18% from the prior year period.

Valuation Assessment: Premium Positioning

When examining valuation metrics, Cardinal Health commands a Forward P/E ratio of 20.19, which represents a notable premium relative to its industry peer average of 17.72. The stock’s PEG ratio currently sits at 1.45, a metric that contextualizes valuation against projected earnings growth. The Medical - Dental Supplies sector averages a PEG ratio of 2.36, suggesting CAH trades at a more attractive valuation relative to its growth profile.

The broader Medical - Dental Supplies industry carries a Zacks Industry Rank of 151, positioning it in the bottom 39% of all 250+ tracked industries. This ranking reflects that top-tier industries outperform lower-ranked peers by approximately 2-to-1 margins.

Analyst Sentiment and Stock Rating

Recent estimate revisions provide insight into analyst positioning. Over the past month, the consensus EPS estimate for CAH has shifted downward by 0.17%, suggesting modest caution among the research community. Currently, Cardinal Health carries a Zacks Rank of #3 (Hold), placing it in a neutral category within the rating framework. The Zacks Rank system, which scores from #1 (Strong Buy) to #5 (Strong Sell), has demonstrated strong performance historically—#1-rated stocks have averaged annual returns of +25% since 1988.

As investors monitor Cardinal Health through upcoming trading sessions, these fundamental metrics and sentiment indicators will remain essential benchmarks for evaluating the stock’s near-term trajectory.