Analysts at Citigroup have issued a fresh “Buy” rating for Cardinal Health, Inc. (CAH), signaling confidence in the company’s potential for significant price appreciation. With the stock currently trading at $202.49 and a price target set at $244 by Citigroup’s Daniel Grosslight, the recommendation suggests an attractive entry point for investors looking at both short and long-term horizons.
Recent Price Action
Over the past week, CAH’s stock has faced some pressure, slipping by 1.27 points or 0.63%, with a current price of $202.49. This comes amid moderate trading activity, reaching a volume of 290,308 shares against an average of 2,282,096 shares, indicating a potential disconnect between investor sentiment and trading activity. Over the last 52 weeks, the stock reached a high of $208.28, only 5.79 points shy of its current level, while the low was significantly lower at $69.80. CAH’s stability is underscored by a beta of 0.654, suggesting it is less volatile than the broader market, which may appeal to risk-averse investors.
Historical Performance
Cardinal Health’s stock has demonstrated a resilient performance in various timeframes. Over the past 30 days, the stock gained 1.84%, while its more impressive quarterly return stands at 29.26%, reflecting a robust recovery as industries rebound from pandemic-induced volatility. Over the last year, CAH has delivered an impressive 71.57% return, indicating strong underlying momentum against a backdrop of recovering healthcare demand. Analyzing volatility, the stock exhibited weekly volatility of 2.03% and monthly volatility of 1.45%, suggesting relatively stable performance compared to more erratic securities.
Earnings Analysis
On October 30, 2025, Cardinal Health reported earnings per share (EPS) of $2.55, outperforming analyst expectations of $2.18 by a notable 16.97%. This marks a positive trend in the company’s earnings quality, especially when juxtaposed against the previous quarter’s results, where it reported an EPS of $2.08 compared to estimates of $2.04, delivering a smaller surprise factor of 1.96%. Such consistent earnings beats not only enhance the company’s credibility among analysts but also reflect efficient operational execution in a competitive landscape.
Consensus Ratings
The consensus sentiment towards CAH remains overwhelmingly positive, with a total of eight ratings issued in the past 90 days. Seven analysts have rated the stock as a “Buy,” while one has issued a “Hold” rating—there are no “Sell” ratings. The average price target stands at approximately $221.63, with analysts predicting potential upward movement toward the high target of $244. This consensus suggests a strong belief in Cardinal Health’s market presence and financial stability.
Stock Grading and Fundamental View
Cardinal Health holds a Stocks Telegraph grading score of 51, indicating sound fundamentals and a positive overall investment profile. This score denotes a good balance between financial health and market performance, making CAH an attractive option for investors seeking growth opportunities in the healthcare sector.
Conclusion
With a favorable analyst outlook, robust earnings performance, and a solid historical return trajectory, Cardinal Health presents itself as a compelling investment opportunity, particularly for those prioritizing long-term growth. While the stock carries inherent risks associated with the healthcare industry and broader market fluctuations, its lower volatility and consistent performance make it a suitable match for conservative investors seeking a defensive position in their portfolios. As CAH navigates its next growth phase, the stock is undoubtedly worth monitoring for insights into potential market shifts and investment strategy adjustments.