Cardinal Health Shares Rally 2.61% Despite 48.19% Volume Drop to $0.26 Billion, Ranking 382nd in Market Activity

On August 8, 2025, Cardinal Health (CAH) saw a 2.61% rise in share price despite a 48.19% drop in trading volume to $0.26 billion, ranking 382nd in market activity. The stock’s performance follows ongoing strategic developments ahead of its Q4 2025 earnings report scheduled for August 12. Analysts highlight sustained momentum in the Pharmaceutical segment, driven by strong branded drug volumes and specialty physician practices, alongside recovery in the Medical segment supported by improved supply chain execution. The expansion of its Outcomes platform to over 40,000 pharmacies is expected to boost incremental revenues, while the Nuclear and Precision Health Solutions business benefits from resilient demand.

Recent infrastructure investments, including a new at-Home Solutions distribution center in Fort Worth, Texas, and a facility in Boylston, Massachusetts, underscore the company’s focus on enhancing supply chain resilience. These projects, equipped with automation technologies, aim to strengthen distribution capabilities and meet growing customer needs. Despite these positives, macroeconomic uncertainties and potential tariff impacts remain risks to Q4 revenue growth. The company maintains its full-year adjusted EPS guidance of $7.20–$7.35, with Q4 estimates suggesting a 10.3% year-over-year EPS increase to $2.03 and 1.3% revenue growth to $60.67 billion.

Valuation metrics show CAH trading at a forward P/E of 16.5x, a premium to the industry average of 15.9x. While outperforming peers like Becton Dickinson and Cencora, it remains cheaper than McKesson. Year-to-date, CAH’s shares have gained 29.7%, outperforming both the S&P 500 and the Zacks Medical sector. Cost discipline under the Medical Improvement Plan and share repurchases are expected to support margin stability, though SG&A normalization and IT investments may moderate gains.

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