Cardinal Health (CAH) Stock: Buy, Sell, or Hold?

CAH - Cardinal Health, Inc.

WHOLESALE-DRUGS, PROPRIETARIES & DRUGGISTS' SUNDRIES
$234.57
-1.45 (-0.61%) ▼
5d: -5.65%
30d: +0.18%
90d: +6.06%
HOLD
MODERATE Confidence
Protect Your CAH Gains
Analysis Updated: Sep 11, 2026 12:00 AM ET
Earnings: Oct 29, 2026
Smart Money Distribution

Options positioning is turning defensive after a sharp run-up - a pattern consistent with institutional profit-taking. View Scanner →

Signal fired Sep 4, 2026 at $247.18 · last confirmed Sep 9, 2026

Strength: 6.3/10

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Interactive Price Chart (1 Month)

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💡
Bottom Line:
📊 HOLD: CAH is fairly valued with market pricing in 0.9% annual growth. Fine to hold or accumulate slowly on dips.
See Forward Earnings Fair Value & Price Prediction →

Long-Term Wealth Forecast (2031)

Based on Analyst Consensus Growth & Historical Valuation

0% (Stagnation) 50% (Hyper Growth)
EST. PRICE IN 2031
$380.34
Based on 10.9% avg growth
INTRINSIC VALUE TODAY
$236.16
0.7% Margin of Safety

How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 18.9x Exit PE.

In-depth Analysis How we analyze

Valuation Analysis: CAH is currently trading at $234.57, which is considered slightly high relative to its 30-day fair value range of $231.78 to $241.41. The stock's valuation (Forward PE: 19.5) is in line with its historical norms (18.9). At these levels, the market is pricing in 0.9% annual earnings growth. This growth rate appears achievable given the company's track record, suggesting the valuation is rational.

Technical Outlook: Technically, CAH is in a strong uptrend. The price is currently testing key support at $232.60. A bounce from this level would confirm strength, while a break below could signal further downside.

Market Sentiment: The stock scores a mixed 48/100 on our bottoming-setup gauge, with only partial signs of a stabilized entry point. Wall Street analysts see significant upside, with an average price target of $270.94 (+15.5%). The stock is fairly positioned - fine to hold existing positions or accumulate slowly on dips, but not an urgent buy.

Quick Decision Summary

Current Position SLIGHTLY HIGH
Historical Trading Range $231.78 - $241.41
Company Quality Score 55/100 (HOLD)
Volume Confirmation HIGH
Confidence Score 63.8%

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All Signals

  • NEUTRAL: Mixed technical signals (48/100)
  • BULLISH: High volume confirmation
  • BULLISH: Trading below Wall St target ($270.94)
  • NEUTRAL: Market pricing in 0.9% annual earnings growth - fairly valued
  • NEUTRAL: Bottoming setup forming (48/100) — watch for confirmation
  • CAUTION: 5-day price weakness (-5.6%) - monitor closely

Trading Range Analysis

30-Day Trading Range $231.78 - $241.41
Current vs Trading Range SLIGHTLY HIGH

Support & Resistance Levels

Support Level $232.60
Resistance Level $249.29
Current Trend Strong Uptrend
Technical data as of Sep 11, 2026

Fundamental Context

Forward P/E (Next Year Est.) 19.46
Wall Street Target $270.94 (+15.5%)
Revenue Growth (YoY) 5.8%
Earnings Growth (YoY) 68.8%
Profit Margin 0.7%
Valuation Premium vs History +0.9% premium
PE vs Historical 19.5 vs 18.9 FAIR
Market-Implied Price Targets If current PE multiple persists
Implied Growth (YoY): +0.9% (market-implied from PE analysis)
1-Year Target $236.68 (+1%)
2-Year Target $238.81 (+2%)
3-Year Target $240.96 (+3%)
3-Yr Target (if PE normalizes) (PE: 19→19) PE COMPRESSION $234.04 (0%)
Earnings growth offset by PE compression
3-Year Scenarios Using analyst projected EPS growth
Bull: (PE: 20.2, Growth: 17.8%) $397.84 (+70%)
Base: (SPY PE: 19.5, Growth: 17.8%) $383.81 (+64%)
Bear: (PE: 16.5, Growth: 17.8%) $326.24 (+39%)
📈 Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (33x PE), but valuation improves significantly next year (19x PE) as earnings recover.
Trailing PE: 33.24 | Current EPS (TTM): $7.10
Bull Case $440.80 (+88%)
Analyst growth 69.8%, PE expands to 36.6
Base Case $400.73 (+71%)
Market implied 69.8%, PE stable at 33.2
Bear Case $160.49 (-32%)
Severe decline -20.0%, PE contracts to 28.3
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
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Last updated: September 12, 2026 4:28 AM ET
Data refreshes hourly during market hours. Next update: 5:28 AM
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Insider Activity (6 Months)
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Buys
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NEUTRAL

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Advanced CAH Option Strategies

Professional options setups generated by AI based on today's CAH price and gamma walls.

Iron Condor Bull Call Bear Put Collar

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