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How to Buy Cardinal Health, Inc. (CAH) Shares - Investment in Cardinal Health, Inc. (CAH) Stock

24 August 2025
4 min to read
How to buy Cardinal Health, Inc. (CAH) shares – Investment in Cardinal Health, Inc. (CAH) stock

Thinking about investing in one of America's healthcare backbone companies? Cardinal Health, Inc. (CAH) connects pharmaceutical manufacturers with hospitals and pharmacies across the nation. With aging populations and rising prescription demand, this distribution giant offers both stability and growth potential for savvy investors.

📈 Cardinal Health Stock: Current Price and Market Position

As of August 24, 2025, Cardinal Health, Inc. (CAH) trades at $148.10 on the NYSE. The company just reported strong Q4 earnings on August 12, 2025, beating EPS estimates but showing mixed revenue results.

Mark your calendar: November 7, 2025 is critical – that’s when Cardinal Health releases its next quarterly earnings. Historically, these reports create significant price movements.

How Earnings Reports Impact CAH Stock

Date Event Price Reaction Key Takeaway
Aug 12, 2025 Q4 FY2025 Earnings -2.33% decline EPS beat but revenue miss
May 1, 2025 Q3 FY2025 Results +6% weekly gain Strong across all segments
Feb 2025 Previous Quarter +8% post-earnings Consistent outperformance

The pattern shows that while Cardinal Health typically beats earnings estimates, the market reacts strongly to revenue performance and guidance updates.

📊 6-Month Price Performance Analysis

Cardinal Health has demonstrated impressive resilience amid market volatility:

February 2024: ~$132.80 (post-holiday consolidation)
March 2024: ~$136.85 (early year momentum)
April 2024: ~$140.86 (steady upward trend)
May 2024: ~$153.97 (acquisition excitement)
June 2024: ~$167.49 (52-week high reached)
Current (Aug 2024): $148.10 (13% correction from peak)

Key Trend Insight: The stock gained approximately 17% from February to June 2024, then experienced a healthy correction. This pattern suggests strong underlying fundamentals with occasional profit-taking opportunities.

The 52-week range of $106.54 – $168.44 shows significant volatility, but the current price sits comfortably above the yearly average of $132.88.

🔮 Price Forecast: 2025-2030 Outlook

Based on current analyst projections and company guidance:

  • 2025 Year-End: $150-155 range (modest growth from current levels)
  • 2026 Projection: $160-170 (benefiting from recent acquisitions)
  • 2028 Outlook: $175-190 (specialty business expansion)
  • 2030 Forecast: $200-220 (long-term healthcare tailwinds)

Verdict: BUY – The recent pullback from June highs presents an attractive entry point for long-term investors.

⚠️ Investment Risks to Consider

Every investment carries risks, and Cardinal Health is no exception:

  • Acquisition Integration Risk: The company’s $1 billion debt issuance for Solaris Health and other acquisitions creates execution risk
  • Valuation Concerns: P/E ratio of 25.15x is rich compared to healthcare peers
  • Regulatory Pressure: Healthcare distribution faces ongoing scrutiny around drug pricing
  • Contract Volatility: Recent OptumRx contract expiration caused revenue headwinds

🟢 Positive Signals for 2025

Despite risks, several factors support investment:

  • Strong Guidance: Raised FY2026 EPS guidance to $9.10-$9.30 indicates management confidence
  • Specialty Expansion: The Specialty Alliance platform positions CAH in higher-margin services
  • Industry Tailwinds: Aging population and 7.1 billion prescriptions in 2024 support demand
  • Dividend Safety: 1.3% yield with conservative 31% payout ratio provides income stability

📰 Significant News Impact Analysis

Cardinal Health has been strategically active in 2025:

  • The Specialty Alliance Launch: Created a multi-specialty platform including GI Alliance and new urology expansions through acquisitions of Urology America and Potomac Urology (Investor Day Announcement)
  • Advanced Therapies Report: Released inaugural report highlighting cell and gene therapy growth potential, positioning in emerging markets (Q3 Earnings Report)
  • Technology Innovation: Launched Kendall DL Multi System for patient monitoring and One Voice Initiative for independent pharmacy support

🎯 Beginner Trader Action Plan

What to do today? Here’s my professional advice:

  1. Start Small: Begin with a position representing ≤5% of your portfolio
  2. Dollar-Cost Average: Add to your position on monthly intervals regardless of price
  3. Set Earnings Alerts: Mark November 7, 2025 on your calendar for potential entry opportunities
  4. Monitor Technicals: Watch for support around $145 and resistance at $155 for optimal entries

Humorous take: “Trading CAH is like waiting for prescription refills – sometimes you need patience, but the medicine usually works eventually!”

✅ How to Buy Cardinal Health, Inc. (CAH) Shares – Step by Step

Step Action Why It Matters
1 Choose a Trading Platform Ensure it offers NYSE-listed stocks and fractional shares
2 Complete Account Funding Start with an amount you’re comfortable potentially losing
3 Search for “CAH” Use the ticker symbol, not just the company name
4 Select Order Type Use limit orders to control your entry price
5 Review and Confirm Check commission fees and settlement details

💡 Why Pocket Option Appeals to New Investors

For those starting their investment journey, Pocket Option offers several advantages:

  • Minimum Deposit: Just $5 allows you to test strategies with minimal risk
  • Rapid Verification: 1-minute KYC process using any government ID
  • Withdrawal Options: Over 100 methods including cryptocurrencies and e-wallets
  • Educational Resources: Access the Pocket Option blog for ongoing market insights

🏥 Cardinal Health in 2025: Healthcare Distribution Leader

Cardinal Health operates through two main segments generating over $222 billion in annual revenue:

  • Pharmaceutical Distribution: 90% of revenue, connecting drug manufacturers with healthcare providers
  • Medical Products: Growing segment focused on surgical and medical equipment distribution

The company employs 57,700 people worldwide and has strategically pivoted toward higher-margin specialty services through recent acquisitions and platform expansions.

Interesting Fact: In 2025, Cardinal Health launched The Specialty Alliance that now supports over 2,200 providers across 28 states – creating one of the largest specialty care networks in the country while maintaining their core distribution dominance.

FAQ

What is Cardinal Health's dividend yield?

Cardinal Health currently offers a 1.3% dividend yield with a conservative 31% payout ratio, providing stable income alongside growth potential.

How often does Cardinal Health report earnings?

The company reports quarterly earnings, with the next announcement scheduled for November 7, 2025 following the recent August 12, 2025 report.

What are the main risks of investing in CAH stock?

Key risks include acquisition integration challenges, regulatory pressures in healthcare distribution, valuation concerns at current levels, and contract volatility with major customers.

How has CAH stock performed compared to the healthcare sector?

Cardinal Health has significantly outperformed, returning +35.33% over the past year while the healthcare sector declined -27.5% during the same period.

What makes Cardinal Health different from other healthcare stocks?

CAH operates as a critical infrastructure company in healthcare distribution rather than direct care provision, providing essential services between manufacturers and providers with relatively stable demand patterns.

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