CAH stock: buy or sell?

CAH stock price: $51.54 0.64% At close on October 18th, 2019

Updated on:
October 18th, 2019

2

Cardinal Health shares raised 0.64% to $51.54 on October 18th. Oct 18th was the fourth green day in a row, marking 10.14%.

Cardinal Health, Inc. operates as an integrated healthcare services and products company worldwide. The company's Pharmaceutical segment distributes branded and generic pharmaceutical, specialty pharmaceutical, over-the-counter healthcare, and consumer products to retailers, hospitals, and other healthcare providers.

Should I buy CAH stock?

Trading stocks requires experience and discipline, and your buying and selling decisions must come following a methodology. Having a trading strategy helps to make decisions easier, quicker and with less hesitations. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.

None of our preferred buy setups matches with Cardinal Health stock situation right now, therefore this is not a suitable entry point.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This doesn't mean CAH will fall in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems.

Is Cardinal Health stock a buy?

Everyday, hundreds of stock ratings are posted by financial analysts to indicate a particular stock's attractiveness. At Stocks2.com, we gathered 6 ratings published for CAH stock in the last 30 days.

The general sentiment of these ratings is bearish for CAH stock, with 2 negative ratings.
Is CAH a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-9-6Morgan Stanleyn/aUnderweight
2019-9-12Deutsche Bankn/aHold
2019-8-27ArgusBuyHold
2019-8-20GuggenheimNeutralBuy
2019-4-2Wolfe Researchn/aUnderperform
2019-1-17UBS Groupn/aNeutral

CAH stock analysis

Daily outlook

Cardinal Health shares raised 0.64% to $51.54 on Oct/18.

Cardinal Health shares raised 0.64% to $51.54 on October 18th. Since price and SMA200d lines crossed up on Oct/11, CAH climbed $5.49 (11.92%). On October/1, SMA50d and SMA100d crossed up triggering a rise of 9.22%.

CAH stock chart (daily)

Weekly outlook

Cardinal Health ended this week at $51.54 and rocketed an outstanding 9.85%.

Price pattern shows an uptrend with two rising tops and bottoms, and now finally trading above the $48.69 resistance. Last week CAH price bounced up over the SMA of 40 weeks that acted as support stopping new slides.

CAH stock chart (weekly)

CAH stock price history

CAH IPO was on August 4th, 1983 at $0.00 per share1. Since then, CAH stock surged a inf%, with an average of inf% per year. If you had invested right after CAH's IPO a $1,000 in CAH stock in 1983, it would worth $inf today.

1: Adjusted price after possible price splits or reverse-splits.

CAH stock historical price chart

CAH stock reached 52-week highs on November at $55.95, and all-time highs 2015-12-29 with a price of 79.83.

CAH stock price target is $48.50

How much a stock will be priced tomorrow or next week is quite unpredictable However, financial institutions invest time and resources to provide the most accurated estimations to help investors to make their decisions. The accuracy of these stock price predictions is not very high, and you should not blindly believe and make decisions only based on what this ratings or price target predictions say. For the last month we found 4 price forecasts for Cardinal Health stock:
CAH stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-9-6Morgan StanleyLowers Target$50.00$41.00-18%
2019-9-12Deutsche BankInitiatesn/a$50.00-
2019-8-20GuggenheimUpgrades$50.00$52.004%
2019-1-17UBS GroupInitiatesn/a$51.00-
(in average)$50.00$48.50-3.0%
The price prediction for Cardinal Health stock is $48.50, moving in a range between $52.00 and $41.00. In average, analysts' outlook on CAH price target is negative, downgrading the forecast by a -3.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

Cardinal Health presented phenomenal results for 2018-Q4 on February. Cardinal Health soared Earnings per Share (EPS) by 18.30%, beating analysts of $1.09. Cardinal Health posted $1.29.
CAH earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q1-n/a1.34n/a
2017-Q2-n/a1.09n/a
2017-Q32017-11-0611.099.0%
2017-Q42018-02-081.151.5131.3%
2018-Q12018-05-031.511.39-7.9%
2018-Q22018-08-060.931.018.6%
2018-Q32018-11-081.061.2921.7%
2018-Q42019-02-071.091.2918.3%
2019-Q1-n/an/an/a
2019-Q2-n/an/an/a

Annual financial results

In 2018, Cardinal Health annual sales soared a good 5.26% to $136,809.00 M USD from $129,976.00 marked in 2017. When comparing 2018 vs 2017, slightly worse, profit margin (that is, the net income divided by revenues) remained steady a -0.80% to 0.19%.

To have an updated view of the financial situation of Cardinal Health, we have calculated the trailing twelve month (TTM) sales and income figures. TTM values are the sum of the last 4 quarters and aproximate to an annual fiscal report ending in 2018-Q4 that can be compared to 2018 fiscal year results. Annual Cardinal Health TTM sales up to December 2018 were $141,935.00 and earnings were $-38.00 M USD. When comparing this TTM figures with the last reported annuality, we can esteem Cardinal Health business evolution since June 2018: Annual sales up to December, compared to lastest yearly report, inched a decent 3.75%. Regarding profit margin, Cardinal Health stayed steady -0.21% to 0.19%

CAH annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$101,090 M-$335 M0.3%-
2014$91,080 M-9.90%$1,160 M1.3%246.27%
2015$102,531 M12.57%$1,215 M1.2%4.74%
2016$121,546 M18.55%$1,427 M1.2%17.45%
2017$129,976 M6.94%$1,288 M1.0%-9.74%
2018$136,809 M5.26%$256 M0.2%-80.12%
TTM $141,935 M3.75%$-38.00 M-0.0%-114.84%

Quarterly financial results

Cardinal Health reported $37,740.00 million in sales for 2018-Q4, a 7.18% improvement compared to previous quarter. Reported quarter earnings marked $280.00 M with a profit margin of 0.74%. Profit margin stayed constant a -0.94% compared to previous quarter when profit margin was 1.68%. When comparing revenues to same quarter last year, Cardinal Health sales marked a very good increase and jumped a 7.26%.
CAH quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q1$31,820 M-$381.00 M1.2%-
2017-Q2$32,970 M3.61%$274.00 M0.8%-28.08%
2017-Q3$32,641 M-1.00%$115.00 M0.4%-58.03%
2017-Q4$35,186 M7.80%$1,053.00 M3.0%815.65%
2018-Q1$33,633 M-4.41%$255.00 M0.8%-75.78%
2018-Q2$35,349 M5.10%$-1,166.00 M-3.3%-557.25%
2018-Q3$35,213 M-0.38%$593.00 M1.7%-150.86%
2018-Q4$37,740 M7.18%$280.00 M0.7%-52.78%

Cardinal Health ownership

When you are planning to invest in a stock, it's worth to have a look its ownership structure.

Cardinal Health shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 0.32% of all shares.

Bearish positions for CAH stock account 0.00%, no big difference from last month.

The following table compares ownership indicators for other stocks related to Cardinal Health:

CAHABCCVSHLFHSIC
Market cap$15.1 B$18.7 B$86.0 B$5.6 B$9.3 B
Total shares292.4 M208.3 M1,300.0 M141.2 M148.3 M
Float shares297.7 M151.0 M1,300.0 M80.4 M138.3 M
  - Institutional holdings (%)92.4%68.0%83.8%15.7%105.9%
  - Insider holdings (%)0.3%27.1%0.2%39.2%1.2%
Shares in short selling0.0%0.0%0.0%0.0%0.0%

CAH summary

Friday, October 18th, 2019
Open$51.07
Close$51.54
Day range$50.74 - $51.67
Previous close$51.21
Session gain0.64%
Average true range$1.29
50d mov avg$45.55
100d mov avg$45.11
200d mov avg$46.39
Daily pattern
Weekly pattern lb02c

Cardinal Health performance

Performance as an absolute value is never valid if it's not benchmarked against competitors or related stocks in the industry. We compared Cardinal Health against , CVS Health, Herbalife Nutrition, Henry Schein, McKesson, Owens & Minor, Patterson Companies, Premier and Teleflex in the following table:
Stock3m6m12m
CAHCardinal Health15.72%14.38%0.98%
ABC5.31%24.95%-1.56%
CVSCVS Health19.34%28.04%-7.83%
HLFHerbalife Nutriti...-3.56%-22.02%-27.46%
HSICHenry Schein-6.95%2.13%-2.94%
MCKMcKesson9.94%34.27%16.42%
OMIOwens & Minor170.45%111.87%-51.72%
PDCOPatterson Compani...-12.58%-15.90%-21.43%
PINCPremier-15.70%3.32%-26.27%
TFXTeleflex-1.92%18.75%35.51%

Cardinal Health competitors

We selected a few stocks to conform a list of Cardinal Health competitors to check if you are interested in investing in CAH:

Latest CAH stock news