Cardinal Health, Inc. (CAH) Hit a 52 Week High, Can the Run Continue?

A strong stock as of late has been Cardinal Health (CAH). Shares have been marching higher, with the stock up 7.9% over the past month. The stock hit a new 52-week high of $166.03 in the previous session. Cardinal has gained 39.9% since the start of the year compared to the -4.9% move for the Zacks Medical sector and the -0.9% return for the Zacks Medical - Dental Supplies industry.What's Driving the Outperformance?The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on May 1, 2025, Cardinal reported EPS of $2.35 versus consensus estimate of $2.15 while it missed the consensus revenue estimate by 0.27%.For the current fiscal year, Cardinal is expected to post earnings of $8.16 per share on $223.11 billion in revenues. This represents a 8.37% change in EPS on a -1.71% change in revenues. For the next fiscal year, the company is expected to earn $9.14 per share on $245.33 billion in revenues. This represents a year-over-year change of 12% and 9.96%, respectively.Valuation MetricsCardinal may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.Cardinal has a Value Score of B. The stock's Growth and Momentum Scores are D and A, respectively, giving the company a VGM Score of B.In terms of its value breakdown, the stock currently trades at 20.3X current fiscal year EPS estimates, which is a premium to the peer industry average of 17.2X. On a trailing cash flow basis, the stock currently trades at 15.7X versus its peer group's average of 15X. Additionally, the stock has a PEG ratio of 1.85. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.Zacks RankWe also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Cardinal currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Cardinal fits the bill. Thus, it seems as though Cardinal shares could still be poised for more gains ahead.How Does CAH Stack Up to the Competition?Shares of CAH have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is McKesson Corporation (MCK). MCK has a Zacks Rank of #2 (Buy) and a Value Score of A, a Growth Score of A, and a Momentum Score of F.Earnings were strong last quarter. McKesson Corporation beat our consensus estimate by 3.16%, and for the current fiscal year, MCK is expected to post earnings of $37.23 per share on revenue of $405.8 billion.Shares of McKesson Corporation have gained 1.4% over the past month, and currently trade at a forward P/E of 19.58X and a P/CF of 18.76X.The Medical - Dental Supplies industry is in the top 12% of all the industries we have in our universe, so it looks like there are some nice tailwinds for CAH and MCK, even beyond their own solid fundamental situation.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Cardinal Health, Inc. (CAH): Free Stock Analysis Report McKesson Corporation (MCK): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks