Cardinal Health, Inc. (CAH) Hits Fresh High: Is There Still Room to Run?

Shares of Cardinal Health (CAH) have been strong performers lately, with the stock up 6.6% over the past month. The stock hit a new 52-week high of $218.93 in the previous session. Cardinal has gained 6.5% since the start of the year compared to the 0.5% gain for the Zacks Medical sector and the 2.1% return for the Zacks Medical - Dental Supplies industry.What's Driving the Outperformance?The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on October 30, 2025, Cardinal reported EPS of $2.55 versus consensus estimate of $2.21.For the current fiscal year, Cardinal is expected to post earnings of $10.01 per share on $258.99 in revenues. This represents a 21.48% change in EPS on a 16.36% change in revenues. For the next fiscal year, the company is expected to earn $11.15 per share on $279.66 in revenues. This represents a year-over-year change of 11.39% and 7.98%, respectively.Valuation MetricsThough Cardinal has recently hit a 52-week high, what is next for Cardinal? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.Cardinal has a Value Score of A. The stock's Growth and Momentum Scores are A and D, respectively, giving the company a VGM Score of A.In terms of its value breakdown, the stock currently trades at 21.9X current fiscal year EPS estimates, which is a premium to the peer industry average of 17.9X. On a trailing cash flow basis, the stock currently trades at 18.8X versus its peer group's average of 13X. Additionally, the stock has a PEG ratio of 1.49. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making Cardinal an interesting choice for value investors.Zacks RankWe also need to consider the stock's Zacks Rank, as this is even more important than the company's VGM Score. 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 passes the test. 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 Align Technology, Inc. (ALGN). ALGN has a Zacks Rank of #2 (Buy) and a Value Score of B, a Growth Score of C, and a Momentum Score of B.Earnings were strong last quarter. Align Technology, Inc. beat our consensus estimate by 10.13%, and for the current fiscal year, ALGN is expected to post earnings of $11.00 per share on revenue of $4.02 billion.Shares of Align Technology, Inc. have gained 2.2% over the past month, and currently trade at a forward P/E of 14.87X and a P/CF of 18.2X.The Medical - Dental Supplies industry may rank in the bottom 70% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for CAH and ALGN, even beyond their own solid fundamental situation.Radical New Technology Could Hand Investors Huge GainsQuantum Computing is the next technological revolution, and it could be even more advanced than AI.While some believed the technology was years away, it is already present and moving fast. 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(ALGN): 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