Why Cardinal Health (CAH) is a Top Value Stock for the Long-Term

Cardinal Health (CAH) is highlighted by Zacks as a top long-term value stock, achieving a Zacks Rank #2 (Buy) and strong Style Scores (VGM A, Value A). This positive outlook is underpinned by attractive valuation metrics, including a forward P/E of 16.83, recent upward revisions by seven analysts to its FY2026 earnings estimate to $9.41 per share, and a consistent +9.2% average earnings surprise. The recommendation leverages Zacks' proprietary methodology, which has a historical track record of identifying outperforming stocks, positioning CAH as a noteworthy consideration for institutional investors.

Analysis

Cardinal Health (CAH) is presented with a strongly positive outlook, primarily driven by quantitative signals from the Zacks rating system. The company has been assigned a Zacks Rank of #2 (Buy), supported by top-tier Style Scores, including an 'A' for both Value and the composite VGM score. This valuation signal is substantiated by a forward P/E ratio of 16.83. The bullish sentiment is further reinforced by positive momentum in analyst earnings estimates; seven analysts have revised their fiscal 2026 earnings estimates upward in the last 60 days, causing the Zacks Consensus Estimate to increase by $0.20 to $9.41 per share. This trend is complemented by a strong operational track record, evidenced by an average positive earnings surprise of 9.2%. The analysis rests on the foundation of CAH's dominant market position as a key healthcare services provider, serving nearly 90% of U.S. hospitals and operating a vast distribution network, including specialized nuclear pharmacy services.

Key Decisions for Investors

• Given the 'A' rating for Value and a forward P/E of 16.83, value-oriented investors should consider the stock's current valuation metrics to be attractive.
• The primary driver of the 'Buy' rating is upward earnings estimate revisions, so investors should closely monitor future analyst estimate trends and company guidance to validate the continuation of this positive momentum.
• Considering the company's consistent average earnings surprise of +9.2%, investors may want to factor in the potential for continued outperformance relative to consensus expectations in upcoming quarters.