Cardinal Health Stock Trim Strategy
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 10 2026
0mins
Source: CNBC
- 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.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy CAH?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on CAH
Wall Street analysts forecast CAH stock price to fall
11 Analyst Rating
10 Buy
1 Hold
0 Sell
Strong Buy
Current: 226.280
Low
209.00
Averages
225.18
High
244.00
Current: 226.280
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 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.
Cardinal Health Continues Growth with Stock Price Surge
- Outstanding Stock Performance: Cardinal Health achieved a remarkable 74% stock price increase in 2025, followed by a 7.9% rise year-to-date in 2026, reflecting sustained investor confidence in its growth strategy, significantly outperforming peers McKesson and Cencora.
- Enhanced Profitability: In its fiscal Q3 2026 earnings report, the company reported a 35% EPS growth and raised its earnings guidance again, underscoring management's confidence in sustained operational momentum despite macro uncertainties and pricing pressures.
- Strong Specialty Pharmaceutical Business: Cardinal Health's Pharmaceutical and Specialty Solutions segment saw an 11% revenue increase to $56.1 billion and an 18% profit rise in Q3, with expectations for specialty sales to exceed $50 billion in fiscal 2026, indicating robust growth potential in the market.
- Rapid Expansion of New Businesses: The company's
See More
Recap of CNBC Investing Club Monthly Meeting
- Portfolio Analysis: During the June Monthly Meeting, Jim Cramer and Jeff Marks provided an in-depth analysis of 35 portfolio stocks, highlighting their preference for Intel due to its significant upside potential in data center CPU growth, particularly in the context of competition with TSMC.
- Tech Giants Restructuring: Cramer noted a reordering of the 'Magnificent Seven,' with newcomers like SpaceX and the yet-to-go-public Anthropic and OpenAI emerging as formidable competitors, indicating intensified market competition, especially in the AI sector.
- Strengths of Alphabet and Apple: Alphabet is positioned advantageously in the AI era with its YouTube and Waymo businesses, while Apple leverages its ecosystem of over 2.5 billion iPhone users to strengthen its AI partnership with Alphabet, showcasing both companies' robust market positions.
- Market Dynamics and Investment Strategy: Despite challenges faced by Meta and Microsoft, Cramer advises maintaining investments in Amazon and Nvidia, believing that the latter's GPU demand will continue to grow, and that Amazon's cloud business remains highly profitable.
See More
Market Volatility and Portfolio Performance Overview
- Market Volatility Overview: The S&P 500 experienced significant volatility over the past three weeks, recording its worst session in eight months on June 5, just after reaching record highs, indicating shifts in market sentiment and investor uncertainty.
- Portfolio Performance: Among 34 stocks, 19 have risen since the May meeting, with Arm's stock soaring 38.2% driven by strong AI demand and the release of a new Nvidia chip, highlighting the potential for a rebound in tech stocks.
- Bank Stocks Recovery: Wells Fargo's shares increased by 13.9%, reflecting the financial sector's status as the best-performing group in the S&P 500, although it remains down nearly 7% year-to-date, suggesting a cautious recovery amid potential earnings volatility.
- Underperforming Stocks: Amazon's stock fell 10.8%, primarily due to concerns over AI investments, despite securing a $17.5 billion loan for AI development, raising questions about its future financial health and investor confidence.
See More
Market Momentum Broadens Beyond AI
- Market Performance Surge: As of Tuesday, the equal-weighted S&P 500 has risen 10.4% this year, compared to a 9.7% increase in the market cap-weighted version, indicating that the equal-weight index is on track to outperform the traditional S&P 500 for the first time since 2022, reflecting broad market interest in emerging technologies.
- Geopolitical Influence: Citigroup strategist Scott Chronert pointed out that easing tensions between the U.S. and Iran are driving broader market gains, with market optimism significantly boosted by the positive sentiment surrounding current Iran negotiations.
- Healthcare Sector Opportunities: Despite the S&P 500 healthcare sector declining over 1% this year, UBS's Gerry Fowler believes the sector's appeal is increasing, particularly in the U.S., where themes reflecting accelerating growth are becoming as attractive as long-standing AI capex beneficiaries.
- Software Sector Recovery: Although the iShares Expanded Tech-Software Sector ETF is down 13% year-to-date, it has gained over 14% in the second quarter, indicating improved earnings revisions in the software sector that could provide additional growth momentum.
See More
SpaceX's Successful IPO Sparks Market Rally
- Record-Breaking IPO: SpaceX closed at $161 per share, a 19% increase from its fixed offering price of $135, achieving a market value exceeding $2.1 trillion and becoming the sixth-largest public company in the U.S., indicating strong market appetite for its massive IPO.
- Positive Market Reaction: Ahead of SpaceX's debut, Jim Cramer's optimistic comments alleviated market fears about demand, resulting in a 0.5% rise in the S&P 500 and a 0.3% increase in the Nasdaq, reflecting renewed investor confidence in tech stocks.
- Continued AI Investment Growth: Corning's multi-billion dollar optical fiber supply deal with Amazon boosts its optical communications division, highlighting the increasing demand for fiber optics in data centers and solidifying the company's position in the rapidly evolving AI market.
- Inflation Data Impact: Despite the consumer price index rising 4.2% year-over-year in May, the highest in three years, Jim Cramer attributed this mainly to rising oil prices due to the Iran conflict, with the market largely expecting the Federal Reserve to maintain interest rates in the upcoming meeting, indicating cautious optimism about future economic policies.
See More
Humana Stock Shows Signs of Overbought Risk
- Stock Performance Review: Humana's stock has more than doubled since the market bottomed during the U.S.-Iran war on March 30, yet it was identified as one of the overbought stocks in the S&P 500 by the end of the week, indicating potential downside risk.
- Market Volatility Analysis: Despite choppy trading in major U.S. indexes over the past five sessions, the S&P 500 managed to rise for the 10th time in 11 weeks, reflecting complex investor sentiment influenced by geopolitical developments and the SpaceX IPO.
- Healthcare Sector Resilience: UBS noted that the healthcare sector outperformed the S&P 500 on 85% of the days when the benchmark fell by 1% or more over the past year, demonstrating the sector's resilience amid market turbulence.
- Analyst Rating Adjustments: Bank of America raised its price target for J.M. Smucker to $132, implying about a 14% potential upside from Friday's close, reflecting optimistic market expectations for the company's future performance.
See More
Cardinal Health Continues Growth with Stock Price Surge
- Outstanding Stock Performance: Cardinal Health achieved a remarkable 74% stock price increase in 2025, followed by a 7.9% rise year-to-date in 2026, reflecting sustained investor confidence in its growth strategy, significantly outperforming peers McKesson and Cencora.
- Enhanced Profitability: In its fiscal Q3 2026 earnings report, the company reported a 35% EPS growth and raised its earnings guidance again, underscoring management's confidence in sustained operational momentum despite macro uncertainties and pricing pressures.
- Strong Specialty Pharmaceutical Business: Cardinal Health's Pharmaceutical and Specialty Solutions segment saw an 11% revenue increase to $56.1 billion and an 18% profit rise in Q3, with expectations for specialty sales to exceed $50 billion in fiscal 2026, indicating robust growth potential in the market.
- Rapid Expansion of New Businesses: The company's
See More
Recap of CNBC Investing Club Monthly Meeting
- Portfolio Analysis: During the June Monthly Meeting, Jim Cramer and Jeff Marks provided an in-depth analysis of 35 portfolio stocks, highlighting their preference for Intel due to its significant upside potential in data center CPU growth, particularly in the context of competition with TSMC.
- Tech Giants Restructuring: Cramer noted a reordering of the 'Magnificent Seven,' with newcomers like SpaceX and the yet-to-go-public Anthropic and OpenAI emerging as formidable competitors, indicating intensified market competition, especially in the AI sector.
- Strengths of Alphabet and Apple: Alphabet is positioned advantageously in the AI era with its YouTube and Waymo businesses, while Apple leverages its ecosystem of over 2.5 billion iPhone users to strengthen its AI partnership with Alphabet, showcasing both companies' robust market positions.
- Market Dynamics and Investment Strategy: Despite challenges faced by Meta and Microsoft, Cramer advises maintaining investments in Amazon and Nvidia, believing that the latter's GPU demand will continue to grow, and that Amazon's cloud business remains highly profitable.
See More
Market Volatility and Portfolio Performance Overview
- Market Volatility Overview: The S&P 500 experienced significant volatility over the past three weeks, recording its worst session in eight months on June 5, just after reaching record highs, indicating shifts in market sentiment and investor uncertainty.
- Portfolio Performance: Among 34 stocks, 19 have risen since the May meeting, with Arm's stock soaring 38.2% driven by strong AI demand and the release of a new Nvidia chip, highlighting the potential for a rebound in tech stocks.
- Bank Stocks Recovery: Wells Fargo's shares increased by 13.9%, reflecting the financial sector's status as the best-performing group in the S&P 500, although it remains down nearly 7% year-to-date, suggesting a cautious recovery amid potential earnings volatility.
- Underperforming Stocks: Amazon's stock fell 10.8%, primarily due to concerns over AI investments, despite securing a $17.5 billion loan for AI development, raising questions about its future financial health and investor confidence.
See More
Market Momentum Broadens Beyond AI
- Market Performance Surge: As of Tuesday, the equal-weighted S&P 500 has risen 10.4% this year, compared to a 9.7% increase in the market cap-weighted version, indicating that the equal-weight index is on track to outperform the traditional S&P 500 for the first time since 2022, reflecting broad market interest in emerging technologies.
- Geopolitical Influence: Citigroup strategist Scott Chronert pointed out that easing tensions between the U.S. and Iran are driving broader market gains, with market optimism significantly boosted by the positive sentiment surrounding current Iran negotiations.
- Healthcare Sector Opportunities: Despite the S&P 500 healthcare sector declining over 1% this year, UBS's Gerry Fowler believes the sector's appeal is increasing, particularly in the U.S., where themes reflecting accelerating growth are becoming as attractive as long-standing AI capex beneficiaries.
- Software Sector Recovery: Although the iShares Expanded Tech-Software Sector ETF is down 13% year-to-date, it has gained over 14% in the second quarter, indicating improved earnings revisions in the software sector that could provide additional growth momentum.
See More
SpaceX's Successful IPO Sparks Market Rally
- Record-Breaking IPO: SpaceX closed at $161 per share, a 19% increase from its fixed offering price of $135, achieving a market value exceeding $2.1 trillion and becoming the sixth-largest public company in the U.S., indicating strong market appetite for its massive IPO.
- Positive Market Reaction: Ahead of SpaceX's debut, Jim Cramer's optimistic comments alleviated market fears about demand, resulting in a 0.5% rise in the S&P 500 and a 0.3% increase in the Nasdaq, reflecting renewed investor confidence in tech stocks.
- Continued AI Investment Growth: Corning's multi-billion dollar optical fiber supply deal with Amazon boosts its optical communications division, highlighting the increasing demand for fiber optics in data centers and solidifying the company's position in the rapidly evolving AI market.
- Inflation Data Impact: Despite the consumer price index rising 4.2% year-over-year in May, the highest in three years, Jim Cramer attributed this mainly to rising oil prices due to the Iran conflict, with the market largely expecting the Federal Reserve to maintain interest rates in the upcoming meeting, indicating cautious optimism about future economic policies.
See More
Humana Stock Shows Signs of Overbought Risk
- Stock Performance Review: Humana's stock has more than doubled since the market bottomed during the U.S.-Iran war on March 30, yet it was identified as one of the overbought stocks in the S&P 500 by the end of the week, indicating potential downside risk.
- Market Volatility Analysis: Despite choppy trading in major U.S. indexes over the past five sessions, the S&P 500 managed to rise for the 10th time in 11 weeks, reflecting complex investor sentiment influenced by geopolitical developments and the SpaceX IPO.
- Healthcare Sector Resilience: UBS noted that the healthcare sector outperformed the S&P 500 on 85% of the days when the benchmark fell by 1% or more over the past year, demonstrating the sector's resilience amid market turbulence.
- Analyst Rating Adjustments: Bank of America raised its price target for J.M. Smucker to $132, implying about a 14% potential upside from Friday's close, reflecting optimistic market expectations for the company's future performance.
See More
