Cardinal Health Stock Increase Analysis
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6 days ago
0mins
Should l Buy CAH?
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: 185.280
Low
209.00
Averages
225.18
High
244.00
Current: 185.280
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 patients in the home. The Company 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 it owns urology 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. The Company 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.
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- Johnson & Johnson Increase: The Trust purchased 65 shares of Johnson & Johnson at around $223, increasing its total to 290 shares and raising its portfolio weight from 1.3% to 1.7%, reflecting confidence in the long-term growth potential of the healthcare sector despite current market disfavor.
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Cardinal Health Increases Quarterly Dividend to $0.5158
- Dividend Increase: Cardinal Health's Board of Directors has approved an increase in the quarterly dividend to $0.5158 per share, reflecting a proactive approach to capital surplus management aimed at rewarding shareholders and boosting investor confidence.
- Payment Schedule: The new dividend will be payable on July 15, 2026, with a record date of July 1, 2026, ensuring that shareholders receive timely returns, which further strengthens the relationship between the company and its investors.
- Company Overview: Cardinal Health is a global distributor of pharmaceuticals and medical products, focusing on delivering innovative solutions that improve people's lives, showcasing its significant position and influence in the healthcare industry.
- Customer-Centric Strategy: The company's customer-centric approach drives continuous improvement, aiming to meet market demands by providing high-quality products and services, thereby maintaining a competitive edge in the rapidly evolving healthcare sector.
See More
Cardinal Health Likely to Announce Dividend Increase
- Dividend Growth Expectation: Cardinal Health is likely to announce a dividend increase in May, continuing its 31-year streak of consecutive dividend growth, with analysts projecting an annual dividend of $2.07 per share, implying a quarterly dividend of nearly $0.52, representing a 1.33% increase from the previous payout of $0.5107.
- Historical Dividend Performance: The company last declared a dividend of $0.5107 per share in February 2026, yielding 1.04%, and raised its dividend from $0.5056 to $0.5107 in May last year, reflecting a growth rate of approximately 1.01%.
- Financial Health Metrics: Cardinal Health has delivered a 5-year dividend growth rate of about 1% and maintains an annual payout ratio of 2.04%, indicating stability and sustainability in its dividend policy, with safety ratings of A-, growth ratings of B+, yield ratings of C+, and dividend consistency rated A+.
- Future Earnings Outlook: Cardinal Health is set to report its fourth-quarter 2026 financial results during market hours on August 12, 2026, which is expected to further influence investor confidence in the company's future performance.
See More
Cardinal Health Stock Increase Analysis
- 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.
See More
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- Memory Supercycle: The Roundhill Memory ETF (DRAM) attracted over $5 billion in investments within a month, including $1.1 billion on Thursday alone, indicating strong market demand for memory stocks driven by surging AI computing needs.
- Core Holdings Performance: The ETF's core holdings feature leading memory manufacturers like SK Hynix, Micron, and Samsung, allowing investors to gain broad exposure to these high-growth companies, including those not listed on U.S. exchanges.
- Market Reaction: Micron's stock surged over 200 points in a week, climbing from $542 to $747, reflecting optimistic market expectations for memory product demand, with a price-to-earnings ratio of only 9 times projected earnings for the next 12 months, highlighting its appeal as a quality stock.
- Investment Opportunities: Despite waning interest in data center stocks, investors can still capitalize on potential gains in the memory and cooling sectors by purchasing instruments like the DRAM ETF, especially as major tech companies continue to invest heavily in data centers.
See More
Market Dynamics: Oil Prices and Tech Stocks Fluctuate
- Oil Price Recovery: West Texas Intermediate crude oil prices rebounded above $97 per barrel after a morning dip, reflecting cautious optimism about future demand, which could impact related energy stocks' performance.
- Divergent Tech Stock Performance: As AI-related stocks pull back, cybersecurity software stocks like CrowdStrike and Palo Alto Networks surged, crossing $500 and $190 respectively for the first time, indicating increased market confidence in their business models and potentially attracting more investor interest.
- Boeing Stock Rise: Boeing's shares rose as CEO Kelly Ortberg is set to accompany President Trump on his trip to China, with the market anticipating a major order of up to 500 planes, although skepticism remains regarding the order's realization.
- Employment Data Expectations: Economists forecast a 65,000 increase in April's nonfarm payrolls with the unemployment rate steady at 4.3%, while average hourly earnings are expected to rise by 3.8%, providing crucial economic health indicators that could influence investor confidence.
See More
Jim Cramer's Charitable Trust Trading Update
- Goldman Sachs Trim: Jim Cramer's Charitable Trust sold 15 shares of Goldman Sachs at approximately $938 each, reducing its holdings to 170 shares and decreasing the portfolio weight from 4.5% to 4.15%, effectively locking in a 67% profit, showcasing a strategic move to capitalize on recent stock highs.
- Johnson & Johnson Increase: The Trust purchased 65 shares of Johnson & Johnson at around $223, increasing its total to 290 shares and raising its portfolio weight from 1.3% to 1.7%, reflecting confidence in the long-term growth potential of the healthcare sector despite current market disfavor.
- Healthcare Sector Confidence: Despite the underperformance of healthcare stocks, Cramer remains optimistic about Johnson & Johnson and other healthcare positions, noting that all three companies exceeded earnings expectations and raised their full-year outlooks, indicating strong fundamentals.
- Robotic Surgery System Milestone: Johnson & Johnson's Ottava robotic surgery system achieved a critical milestone in its first clinical study, paving the way for FDA approval, which supports the company's goal of double-digit revenue growth by the end of the decade.
See More
Cardinal Health Increases Quarterly Dividend to $0.5158
- Dividend Increase: Cardinal Health's Board of Directors has approved an increase in the quarterly dividend to $0.5158 per share, reflecting a proactive approach to capital surplus management aimed at rewarding shareholders and boosting investor confidence.
- Payment Schedule: The new dividend will be payable on July 15, 2026, with a record date of July 1, 2026, ensuring that shareholders receive timely returns, which further strengthens the relationship between the company and its investors.
- Company Overview: Cardinal Health is a global distributor of pharmaceuticals and medical products, focusing on delivering innovative solutions that improve people's lives, showcasing its significant position and influence in the healthcare industry.
- Customer-Centric Strategy: The company's customer-centric approach drives continuous improvement, aiming to meet market demands by providing high-quality products and services, thereby maintaining a competitive edge in the rapidly evolving healthcare sector.
See More
Cardinal Health Likely to Announce Dividend Increase
- Dividend Growth Expectation: Cardinal Health is likely to announce a dividend increase in May, continuing its 31-year streak of consecutive dividend growth, with analysts projecting an annual dividend of $2.07 per share, implying a quarterly dividend of nearly $0.52, representing a 1.33% increase from the previous payout of $0.5107.
- Historical Dividend Performance: The company last declared a dividend of $0.5107 per share in February 2026, yielding 1.04%, and raised its dividend from $0.5056 to $0.5107 in May last year, reflecting a growth rate of approximately 1.01%.
- Financial Health Metrics: Cardinal Health has delivered a 5-year dividend growth rate of about 1% and maintains an annual payout ratio of 2.04%, indicating stability and sustainability in its dividend policy, with safety ratings of A-, growth ratings of B+, yield ratings of C+, and dividend consistency rated A+.
- Future Earnings Outlook: Cardinal Health is set to report its fourth-quarter 2026 financial results during market hours on August 12, 2026, which is expected to further influence investor confidence in the company's future performance.
See More
Cardinal Health Stock Increase Analysis
- 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.
See More
