Earnings Just Sent This Healthcare Stock to New Record Highs

By: barchartnews|2025/05/02 22:30:02
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Cardinal Health (CAH) rallied to a new record high on Thursday and closed the day 3% higher.Cardinal Health rallied after its release of positive fiscal Q3 earnings results and a hike in guidance for the full year.The company remains in a long-term 3-year uptrend.Company Description:Cardinal Health (CAH) is a nationwide drug distributor and provider of services to pharmacies, healthcare providers, and manufacturers. The company has two reporting segments: Pharmaceutical and Medical. The Pharmaceutical segment is the second-largest pharmaceutical distributor in the United States and the largest nuclear pharmacy. The Medical segment manufactures products such as single-use surgical drapes, gowns and apparel; exam and surgical gloves; fluid suction and collection systems; and sterile and non-sterile procedure kits. These products are sold directly or distributed via third-party sources in the U.S., Canada, Europe, South America and the Asia-Pacific region. The company has a market cap of $35 billion.Today’s Context:Cardinal Health on Thursday rallied sharply after its earnings report and decisively posted a new record high, extending its long-term 3-year uptrend. Management raised its EPS guidance for the current fiscal year to $8.05 to $8.16 from $7.85 to $8.00, which is above the market consensus of $7.96. Management also guided for double-digit non-GAAP EPS growth in fiscal 2026 despite tariff and macroeconomic headwinds. After the earnings report, a Citi analyst maintained his “Neutral” rating on the stock but raised his price target by 12% to $157 from $140. Further positive analyst commentary and price target hikes may follow in the next few sessions following Thursday’s earnings report. www.barchart.comWhat I’m Watching: Cardinal Health rallied 3% on Thursday and decisively posted a new record high. I found today’s Chart of the Day by using Barchart’s New Highs & Lows page and selecting stocks that have new 52-week highs. I then viewed the stocks on the list with the Flipcharts feature. What Comes Next: The record high signals the possibility of further gains, although it always pays to watch for any temporary downside correction. A downside correction could be used for an entry point.Key Technical Levels for Cardinal Health: Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.The Parabolic Time/Price (50) trading system issued a “Buy” signal on April 15 and has been long since then.Barchart’s Overall Average Opinion is a 100% “Buy.”All the Barchart Opinion indicators were a “Buy” as of Thursday, May 1.Cardinal Health has been above its 200-day moving average since August 2024.Analyst Ratings on Cardinal Health: Wall Street analysts have a consensus rating of a “Strong Buy” with a rating of 4.47 out of 5, and price targets between $130 and $161.The average price target of $145.44 is slightly below Thursday’s close of $145.53, suggesting the stock is either slightly overpriced or that analysts have yet to catch up with the stock’s upside potential.Why It Matters: A breakout to a major new high can suggest that a stock has underlying strength to push even higher, although caution is always warranted.Additional disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance and reevaluate your stop losses at least on a weekly basis. On the date of publication, Jim Van Meerten 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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