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Cardinal Health, Inc. (CAH) Stock Analysis

SellModerate Confidence

Healthcare · Medical Distribution

Earnings in 0 days (2026-04-30). Expect elevated volatility around the report — consider waiting for post-earnings price action before new entries.

Sell if holding. Engine safety override at $187.03: Quality below floor (3.5 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.6/10 and A.R:R 3.1:1 is above the 1.5:1 BUY gate. Specifically: Elevated put/call ratio: 6.57; Below-average business quality; Negative price momentum.

Cardinal Health is a global healthcare services and products company with two segments: Pharmaceutical and Specialty Solutions (drug distribution) and Global Medical Products and Distribution (manufacturing and sourcing of medical devices and surgical supplies).

$187.03+19.3% A.UpsideScore 5.6/10#2 of 5 Medical Distribution
Stop $180.23Target $223.44(analyst − 10%)A.R:R 3.1:1
Analyst target$248.27+32.7%15 analysts
$223.44our TP
$187.03price
$248.27mean
$275

Sell if holding. Engine safety override at $187.03: Quality below floor (3.5 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.6/10 and A.R:R 3.1:1 is above the 1.5:1 BUY gate. Specifically: Elevated put/call ratio: 6.57; Below-average business quality; Negative price momentum. Chart setup: No recognized chart pattern (not a breakout, bounce, continuation, recovery, falling knife, or range) — technicals mixed. Score 5.6/10, moderate confidence.

Passes 4/6 gates (favorable risk/reward ratio, clean insider activity, no SEC red flags, semi cycle peak clear). Fails on weak momentum and earnings proximity 0d<=7d. Suitability: moderate.

Thesis

Rewards
No bull case signals
Risks
Concentration risk — Supplier: sole supplier
Quality below floor (3.5 < 4.0)

Key Metrics

P/E (TTM)29.1
P/E (Fwd)17.5
Mkt Cap$47.7B
EV/EBITDA14.2
Profit Mgn0.7%
ROE
Rev Growth18.8%
Beta0.65
Dividend1.01%
Rating analysts22

Quality Signals

Piotroski F6/9

Options Flow

P/C6.57bearish
IV45%normal
Max Pain$160-14.5% vs spot

Concentration Risks(10-K Item 1A)

  • HIGHSuppliersole supplier
    10-K Item 1A: 'we procure certain components and raw materials from a sole supplier'

Material Events(8-K, last 90d)

  • 2026-03-23Item 5.02LOW
    Board Chair Gregory B. Kenny retired effective March 20, 2026; Patricia A. Hemingway Hall appointed Board Chair immediately. No disagreement with Company on any matter cited.
    SEC filing →
  • 2026-03-05Item 5.02LOW
    Chief Accounting Officer Mary Scherer notified intent to retire in February 2027. Company initiating search for successor; Scherer to continue as CAO through transition.
    SEC filing →

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer

Rating Breakdown

2 floor-breakers

Quality below the gate floor. Component breakdown shows what dragged the score down.static

Gross Margin
0.0
Net Margin
0.3
Operating Margin
0.5
Roa
2.3
Current Ratio
3.6
Moat
5.0
Piotroski F
6.7
Fcf Quality
10.0
Excellent cash conversion: 328% FCF/NINo competitive moat

Price action weak — below key moving averages, no momentum carry. Needs a base before trend-continuation setups apply.static

Macd
0.0
Ma Position
2.2
Rsi
3.0
Volume
3.5
Obv
10.0
Capitulation risk (RSI 24, below 200MA)Volume accumulation (rising OBV)Below 200-MA but MA still rising (+4.1%/30d) — pullback in uptrend, not confirmed weakness
GatesMomentum 3.7<4.5EARNINGS PROXIMITY 0d<=7dA.R:R 3.1 ≥ 1.5Insider activity: OKNo SEC red flagsSEMI CYCLE PEAK CLEARSuitability: Moderate
RSI
24 · Oversold
20D MA 50D MA 200D MAGOLDEN CROSSSupport $185.80Resistance $217.77

Price Targets

$180
$223
A.Upside+19.5%
A.R:R3.1:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeSteady

Risk Alerts

! Quality below floor (3.5 < 4.0)
! Momentum score 3.7/10 — below 4.5 minimum
! EARNINGS_PROXIMITY:0d<=7d

Earnings

B
B
B
B
4/4 beats
Next Earnings2026-04-30 (0d)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is CAH stock a buy right now?

Sell if holding. Engine safety override at $187.03: Quality below floor (3.5 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.6/10 and A.R:R 3.1:1 is above the 1.5:1 BUY gate. Specifically: Elevated put/call ratio: 6.57; Below-average business quality; Negative price momentum. Chart setup: No recognized chart pattern (not a breakout, bounce, continuation, recovery, falling knife, or range) — technicals mixed. Prior stop was $180.23. Score 5.6/10, moderate confidence.

What is the CAH stock price target?

Take-profit target: $223.44 (+19.3% upside). Prior stop was $180.23. Stop-loss: $180.23.

What are the risks of investing in CAH?

Concentration risk — Supplier: sole supplier; Quality below floor (3.5 < 4.0).

Is CAH overvalued or undervalued?

Cardinal Health, Inc. trades at a P/E of 29.1 (forward 17.5). TrendMatrix value score: 6.5/10. Verdict: Sell.

What do analysts say about CAH?

22 analysts cover CAH with a consensus score of 4.2/5. Average price target: $248.

What does Cardinal Health, Inc. do?Cardinal Health is a global healthcare services and products company with two segments: Pharmaceutical and Specialty...

Cardinal Health is a global healthcare services and products company with two segments: Pharmaceutical and Specialty Solutions (drug distribution) and Global Medical Products and Distribution (manufacturing and sourcing of medical devices and surgical supplies).

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