With a market cap of $51.6 billion, Cardinal Health, Inc. (CAH) is a healthcare services and products company that operates in the United States and internationally. The company distributes branded and generic pharmaceuticals, specialty drugs, and over-the-counter healthcare products while providing supply chain and pharmacy management services to hospitals, pharmacies, laboratories, and other healthcare providers.
Companies valued at $10 billion or more are generally labeled as “large-cap” stocks, and Cardinal Health fits this criterion perfectly. It operates through two main segments: Pharmaceutical and Specialty Solutions, and Global Medical Products and Distribution, while also manufacturing and distributing a wide range of medical and surgical products.
Shares of the prescription drug distributor have declined 5.4% from its 52-week high of $233.60. CAH stock has increased 11% over the past three months, outperforming the broader Dow Jones Industrials Average's ($DOWI) 3.7% drop over the same time frame.
CAH stock is up 7.1% on a YTD basis, outpacing Dow Jones' 2.9% decrease. Longer term, shares of Cardinal Health have surged 74.2% over the past 52 weeks, compared to DOWI’s 12.9% return over the same time frame.
The stock has been trading above its 50-day and 200-day moving averages since last year.
Shares of Cardinal Health jumped 9.8% on Feb. 5 after the company reported strong Q2 2026 results, with revenue rising 19% year-over-year to $65.6 billion and adjusted EPS surged 36% to $2.63. The rally was also driven by strong segment performance, particularly Pharmaceutical and Specialty Solutions revenue growing 19% to $60.7 billion and profit rising 29% to $687 million, alongside Global Medical Products and Distribution profit jumping 106% to $37 million.
Additionally, investor sentiment improved after the company raised its 2026 adjusted EPS guidance to $10.15 - $10.35 (23% - 26% growth).
In comparison, rival McKesson Corporation (MCK) has outpaced CAH stock on a YTD basis, with MCK stock gaining 15.1%. However, MCK stock has soared 47.4% over the past 52 weeks, lagging behind CAH stock.
Due to CAH’s outperformance relative to the Dow, analysts remain strongly optimistic about its prospects. Among the 16 analysts covering the stock, there is a consensus rating of “Strong Buy,” and the mean price target of $245.81 suggests a premium of 11.5% to current levels.
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.
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