Cardinal Health Stock Increase Analysis
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 04 2026
0mins
Source: CNBC
- Share Increase: We purchased 50 shares of Cardinal Health (CAH) at approximately $199, raising the total holdings in Jim Cramer's Charitable Trust to 525 shares, which increases the portfolio weight from 2.50% to 2.75%, reflecting confidence in the company.
- Earnings Report Reaction: Despite a revenue miss and $184 million in impairment charges in Cardinal's quarterly report, both management and analysts remain optimistic about the company's ability to grow earnings per share in the low-to-mid teens over the long term.
- Earnings Estimates Raised: Following the earnings report, many analysts raised their fiscal year 2027 earnings per share estimates from about $11.60 to $11.91, indicating increased market confidence in the company's future profitability.
- Attractive Valuation: Cardinal Health shares are currently trading at roughly 16.5 times next 12 months' earnings estimates, down from about 20 times in early March, suggesting that the current valuation is attractive for long-term investment.
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Analyst Views on CAH
Wall Street analysts forecast CAH stock price to rise
11 Analyst Rating
10 Buy
1 Hold
0 Sell
Strong Buy
Current: 221.160
Low
209.00
Averages
225.18
High
244.00
Current: 221.160
Low
209.00
Averages
225.18
High
244.00
About CAH
Cardinal Health, Inc. is a global healthcare services and products company. The Company is engaged in providing customized solutions for hospitals, healthcare systems, pharmacies, ambulatory surgery centers, clinical laboratories, physician offices and others. It also provides pharmaceuticals and medical products. Its segments include Pharmaceutical and Specialty Solutions and Global Medical Products and Distribution (GMPD). The Pharmaceutical and Specialty Solutions segment distributes branded and generic pharmaceuticals, specialty pharmaceuticals and over-the-counter healthcare and consumer products in the United States, as well as owns a urology management services organization (MSO). Its GMPD segment manufactures, sources and distributes Cardinal Health branded medical, surgical and laboratory products, which are sold in the United States, Canada, Europe, Asia and other markets. It connects patients, providers, payers, pharmacists and manufacturers for integrated care coordination.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Market Capitalization Comparison: MetLife vs. Cardinal Health
- Market Cap Comparison: MetLife Inc. has a market capitalization of $56.35 billion, compared to Cardinal Health, Inc. at $51.80 billion, indicating MetLife's relative strength in the market, which may attract more large investors.
- Investor Misconceptions: Many novice investors mistakenly compare companies solely based on stock price, but market capitalization provides a more accurate assessment of company value, aiding investors in making informed decisions.
- Market Positioning Impact: Market capitalization not only affects a company's ranking among peers but also determines which mutual funds and ETFs are willing to hold the stock, particularly as large funds prefer companies with market caps exceeding $10 billion.
- Stock Performance: As of last Friday's close, MetLife's stock rose approximately 1.3%, while Cardinal Health's increased by about 0.8%, reflecting positive market sentiment towards MetLife, which may further drive its market cap growth.
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- Successful SpaceX IPO: SpaceX's initial public offering (IPO) performed exceptionally well, with shares rising over 25%, generating $100 million in fees for Goldman Sachs and Morgan Stanley, further solidifying these banks' reputations in the capital markets.
- Tech Stock Volatility: Intel's stock surged over 25% following Google's order for over 3 million tensor processing units, while Bank of America upgraded its rating to buy, indicating increased market confidence in its semiconductor business.
- Software Stocks Under Pressure: Salesforce and Microsoft saw declines of over 11% and 7% respectively this week, reflecting concerns about the future of the software industry, particularly after a prior rebound, leading investors to question their profitability outlook.
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Jim Cramer Reduces Procter & Gamble Holdings
- Share Reduction: Jim Cramer's Charitable Trust sold 75 shares of Procter & Gamble (PG) at approximately $150 each, reducing its holdings to 375 shares and decreasing its portfolio weight from 1.75% to 1.5% to prepare for future market volatility.
- Market Strategy Shift: This sale aims to capitalize on the market's rotation into defensive stocks, with Procter & Gamble, a consumer products powerhouse, expected to act as a hedge when concerns about AI and tech valuations rise.
- Performance Expectations: According to FactSet, Procter & Gamble anticipates approximately 2.5% growth in organic sales and adjusted earnings-per-share (EPS) for fiscal 2027, indicating stability amid market turbulence.
- Rating Adjustment: Following a 4% increase in P&G's stock price in June, contrasting with a 7% decline in the tech sector, Cramer downgraded P&G to a hold-equivalent rating, suggesting a more positive outlook if the stock retraces or growth accelerates.
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Key Takeaways from Wednesday's Investing Club Meeting
- Market Dynamics Impact: Stocks fell on Wednesday as investors weighed a relatively favorable inflation report against President Trump's comments on Iran, with the consumer price index meeting expectations but rising energy prices still pressuring the market, particularly affecting tech stocks.
- FedEx Freight Stock Volatility: FedEx Freight shares dropped 4.5% after Amazon announced plans to expand its trucking services; however, Jim remains optimistic about the company's independent prospects, believing it can unlock more value by focusing on its LTL business.
- Nvidia Stock Performance: Nvidia shares fell another 3% as investors raised cash for upcoming IPOs and AI-related investments; Jim noted that this weakness is more about market dynamics than any deterioration in Nvidia's fundamentals, maintaining a positive long-term outlook.
- Rapid Fire Stock Review: Stocks mentioned at the end of the video included Cracker Barrel, Cava, Chewy, Casey's General Stores, and Pfizer, highlighting the Investing Club's focus on a diversified portfolio.
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Cardinal Health Stock Trim Strategy
- Share Reduction: We sold 100 shares of Cardinal Health at approximately $219, resulting in the Charitable Trust holding 425 shares, which reduces the portfolio weighting from 3.00% to 2.45%, preparing for potential market volatility.
- Cash Position Adjustment: This sale aims to bring our cash position closer to Jim's 12% target, reflecting our cautious stance ahead of Friday's SpaceX IPO while locking in gains from outperforming stocks this year.
- Performance Review: Despite a slight pullback, Cardinal Health has gained nearly 10% since our March purchase, outperforming the S&P 500's 2% increase, indicating a market shift towards healthcare and defensive sectors.
- Rating Downgrade: We downgraded Cardinal Health's rating from a buy-equivalent 1 to a 2, as the position remains slightly in the red, although we added 50 shares when the price dropped to around $200, demonstrating confidence in its potential rebound.
See More
Investors Take Profits, Tech Stocks Pull Back
- Market Pullback Reasons: Stocks are retreating as investors take profits in technology and AI infrastructure stocks, particularly after the S&P 500 rose about 1% shortly after the open before reversing, indicating market fragility.
- Investment Strategy Adjustment: To prepare for the upcoming SpaceX IPO, investors are freeing up capital, prompting us to trim positions in Goldman Sachs and Qnity Electronics on Monday to lock in substantial gains, reflecting market sensitivity to new supply.
- Dividend Adjustment Impact: FedEx announced a 5% increase in its annual dividend, but due to a one-time adjustment related to the FedEx Freight spin-off, the new quarterly payment is $1.22 per share, down from $1.45 in April, although the yield remains around 1.5%, demonstrating the company's commitment to shareholder returns.
- Economic Data Focus: The most significant economic readout this week is the May consumer price index, expected to rise 0.5% month-over-month and 4.2% year-over-year, with the core index projected to increase 2.9% year-over-year, which will influence market expectations regarding the Fed's future rate hikes, especially following a strong jobs report.
See More
Market Capitalization Comparison: MetLife vs. Cardinal Health
- Market Cap Comparison: MetLife Inc. has a market capitalization of $56.35 billion, compared to Cardinal Health, Inc. at $51.80 billion, indicating MetLife's relative strength in the market, which may attract more large investors.
- Investor Misconceptions: Many novice investors mistakenly compare companies solely based on stock price, but market capitalization provides a more accurate assessment of company value, aiding investors in making informed decisions.
- Market Positioning Impact: Market capitalization not only affects a company's ranking among peers but also determines which mutual funds and ETFs are willing to hold the stock, particularly as large funds prefer companies with market caps exceeding $10 billion.
- Stock Performance: As of last Friday's close, MetLife's stock rose approximately 1.3%, while Cardinal Health's increased by about 0.8%, reflecting positive market sentiment towards MetLife, which may further drive its market cap growth.
See More
Market Rises on Optimism Over Iran Peace Deal
- Market Recovery: After two consecutive days of losses, the S&P 500 index rose on Friday afternoon, reflecting optimism regarding the Iran peace deal, although the likelihood of an agreement remains uncertain, which is expected to positively impact investor confidence.
- Successful SpaceX IPO: SpaceX's initial public offering (IPO) performed exceptionally well, with shares rising over 25%, generating $100 million in fees for Goldman Sachs and Morgan Stanley, further solidifying these banks' reputations in the capital markets.
- Tech Stock Volatility: Intel's stock surged over 25% following Google's order for over 3 million tensor processing units, while Bank of America upgraded its rating to buy, indicating increased market confidence in its semiconductor business.
- Software Stocks Under Pressure: Salesforce and Microsoft saw declines of over 11% and 7% respectively this week, reflecting concerns about the future of the software industry, particularly after a prior rebound, leading investors to question their profitability outlook.
See More
Jim Cramer Reduces Procter & Gamble Holdings
- Share Reduction: Jim Cramer's Charitable Trust sold 75 shares of Procter & Gamble (PG) at approximately $150 each, reducing its holdings to 375 shares and decreasing its portfolio weight from 1.75% to 1.5% to prepare for future market volatility.
- Market Strategy Shift: This sale aims to capitalize on the market's rotation into defensive stocks, with Procter & Gamble, a consumer products powerhouse, expected to act as a hedge when concerns about AI and tech valuations rise.
- Performance Expectations: According to FactSet, Procter & Gamble anticipates approximately 2.5% growth in organic sales and adjusted earnings-per-share (EPS) for fiscal 2027, indicating stability amid market turbulence.
- Rating Adjustment: Following a 4% increase in P&G's stock price in June, contrasting with a 7% decline in the tech sector, Cramer downgraded P&G to a hold-equivalent rating, suggesting a more positive outlook if the stock retraces or growth accelerates.
See More
Key Takeaways from Wednesday's Investing Club Meeting
- Market Dynamics Impact: Stocks fell on Wednesday as investors weighed a relatively favorable inflation report against President Trump's comments on Iran, with the consumer price index meeting expectations but rising energy prices still pressuring the market, particularly affecting tech stocks.
- FedEx Freight Stock Volatility: FedEx Freight shares dropped 4.5% after Amazon announced plans to expand its trucking services; however, Jim remains optimistic about the company's independent prospects, believing it can unlock more value by focusing on its LTL business.
- Nvidia Stock Performance: Nvidia shares fell another 3% as investors raised cash for upcoming IPOs and AI-related investments; Jim noted that this weakness is more about market dynamics than any deterioration in Nvidia's fundamentals, maintaining a positive long-term outlook.
- Rapid Fire Stock Review: Stocks mentioned at the end of the video included Cracker Barrel, Cava, Chewy, Casey's General Stores, and Pfizer, highlighting the Investing Club's focus on a diversified portfolio.
See More
Cardinal Health Stock Trim Strategy
- Share Reduction: We sold 100 shares of Cardinal Health at approximately $219, resulting in the Charitable Trust holding 425 shares, which reduces the portfolio weighting from 3.00% to 2.45%, preparing for potential market volatility.
- Cash Position Adjustment: This sale aims to bring our cash position closer to Jim's 12% target, reflecting our cautious stance ahead of Friday's SpaceX IPO while locking in gains from outperforming stocks this year.
- Performance Review: Despite a slight pullback, Cardinal Health has gained nearly 10% since our March purchase, outperforming the S&P 500's 2% increase, indicating a market shift towards healthcare and defensive sectors.
- Rating Downgrade: We downgraded Cardinal Health's rating from a buy-equivalent 1 to a 2, as the position remains slightly in the red, although we added 50 shares when the price dropped to around $200, demonstrating confidence in its potential rebound.
See More
Investors Take Profits, Tech Stocks Pull Back
- Market Pullback Reasons: Stocks are retreating as investors take profits in technology and AI infrastructure stocks, particularly after the S&P 500 rose about 1% shortly after the open before reversing, indicating market fragility.
- Investment Strategy Adjustment: To prepare for the upcoming SpaceX IPO, investors are freeing up capital, prompting us to trim positions in Goldman Sachs and Qnity Electronics on Monday to lock in substantial gains, reflecting market sensitivity to new supply.
- Dividend Adjustment Impact: FedEx announced a 5% increase in its annual dividend, but due to a one-time adjustment related to the FedEx Freight spin-off, the new quarterly payment is $1.22 per share, down from $1.45 in April, although the yield remains around 1.5%, demonstrating the company's commitment to shareholder returns.
- Economic Data Focus: The most significant economic readout this week is the May consumer price index, expected to rise 0.5% month-over-month and 4.2% year-over-year, with the core index projected to increase 2.9% year-over-year, which will influence market expectations regarding the Fed's future rate hikes, especially following a strong jobs report.
See More
