Cardinal Health (CAH) Shares Soar 0.25% on Mizuho's Price Target Hike

Cardinal Health (CAH) shares surged to a record high today, with an intraday decline of 0.25%.

The strategy of buying CAH shares after they reached a recent high and holding for 1 week yielded moderate returns over the past 5 years, with a 7.82% average annual gain. This approach capitalized on the stock's upward momentum, but the returns were somewhat conservative due to the short holding period.

High Recent Performance: Cardinal Health (CAH) reached a high stock price in May 2025, driven by strong fiscal Q3 earnings and an optimistic full-year EPS guidance.

One-Week Holding Performance:

- Average Annual Return: From May 2025 to May 2025, the strategy yielded an average annual return of 7.82%. This is a conservative return given the short holding period, indicating that the stock's upward momentum was not fully capitalized upon.

- Peak to Peak Comparison: Over the same period, the S&P 500 Index gained 12.7%, and the SPDR S&P Health Care Services ETF gained 8.2%. CAH's performance lagged the broader market but outpaced the health care services ETF, positioning it well within its sector.

Earnings and Revenue Analysis: CAH's adjusted EPS of $2.35 for Q1 CY2025 exceeded analyst estimates by 9.4%, contributing to the positive returns. However, revenue fell slightly short of expectations, which may have capped the strategy's upside.

Market Sentiment and Dividends: The company's consistent dividend payments, supported by a strong financial position, likely contributed to investor confidence, though the high recent stock price may have reduced the dividend yield, impacting long-term investors.

Tariff-Related Risks and Operational Efforts: CAH's proactive measures to mitigate tariff-related costs and focus on cost control efforts and investments in U.S. manufacturing and automation suggest a resilient operational strategy, which could have supported long-term holding confidence.

In conclusion, while the strategy of buying CAH shares after a recent high and holding for 1 week yielded positive returns, the conservative nature of these returns suggests that investors looking for higher gains may need to consider longer holding periods or more aggressive strategies. The company's strong financial performance, consistent dividend payments, and strategic operational efforts provide a stable foundation for investment, but the high recent stock price and potential regulatory changes may introduce risks that longer-term holders should be aware of.

Mizuho Securities has raised its price target for Cardinal Health shares from $142.00 to $150.00, maintaining an "outperform" rating. This adjustment reflects the firm's confidence in the company's future performance and growth prospects.

Cardinal Health has announced a quarterly dividend payable on July 15, 2025. This dividend payout is part of the company's ongoing commitment to returning value to its shareholders, further enhancing investor confidence.

Over the past 30 days, Cardinal Health's fiscal 2025 earnings per share estimates have increased by 2% to $8.09. This upward revision in earnings estimates is a positive indicator of the company's financial health and operational efficiency. Additionally, Cardinal Health has consistently surpassed earnings estimates in the trailing four quarters, with an average surprise of 910.3%. This consistent outperformance has contributed to the stock's upward movement and positive market sentiment.