Cardinal Health (CAH) Stock Slides as Market Rises: Facts to Know Before You Trade

Cardinal Health (CAH) stock recently declined 1.64% to $154.31, underperforming the broader market, despite a 3.05% gain over the past month. The company is projected to report strong earnings on October 30, 2025, with an estimated 18.09% increase in quarterly EPS to $2.22 and a 12.96% rise in revenue to $59.05 billion, alongside robust full-year growth forecasts. With a Zacks Rank of #2 (Buy) and recent positive estimate revisions, CAH trades at a Forward P/E of 16.66, a premium to its industry, but its PEG ratio of 1.33 suggests favorable growth prospects within the top-tier Medical - Dental Supplies industry.

Analysis

Cardinal Health (CAH) shares closed down 1.64% at $154.31, underperforming the S&P 500's 1.56% gain on the latest trading day. Despite this daily dip, the stock demonstrated stronger momentum over the past month, rising 3.05% and surpassing both the Medical sector's 2.08% and the S&P 500's 0.41% gains. The company's upcoming earnings report on October 30, 2025, projects robust growth, with EPS estimated at $2.22, an 18.09% year-over-year increase, and revenue expected to reach $59.05 billion, up 12.96%.

Analyst sentiment remains positive, evidenced by a 0.03% upward revision in the Zacks Consensus EPS estimate over the last 30 days, and CAH currently holds a Zacks Rank of #2 (Buy). Full-year Zacks Consensus Estimates further reinforce this optimism, forecasting EPS of $9.42 (+14.32% YoY) and revenue of $249.31 billion (+12.01% YoY). These positive estimate revisions are historically linked to near-term stock price performance.

From a valuation perspective, CAH trades at a Forward P/E of 16.66, which is a premium compared to its industry average of 14. However, its PEG ratio of 1.33 is favorable, sitting below the Medical - Dental Supplies industry average of 1.46, suggesting reasonable valuation considering its expected growth trajectory. The Medical - Dental Supplies industry itself is strong, ranking in the top 34% of all industries with a Zacks Industry Rank of 82.

Key Decisions for Investors

• Investors should closely monitor Cardinal Health's upcoming October 30, 2025 earnings report for confirmation of the projected 18.09% EPS and 12.96% revenue growth.
• Evaluate the sustainability of CAH's growth trajectory and its ability to justify its premium Forward P/E of 16.66 relative to the industry average, despite a favorable PEG ratio of 1.33.
• Consider the positive analyst estimate revisions and Zacks Rank #2 (Buy) as potential indicators of continued strength within the top-tier Medical - Dental Supplies industry.