Cardinal Health, Inc. (CAH) Soars to 52-Week High, Time to Cash Out?

Have you been paying attention to shares of Cardinal Health (CAH)? Shares have been on the move with the stock up 29.4% over the past month. The stock hit a new 52-week high of $210.33 in the previous session. Cardinal has gained 77.1% since the start of the year compared to the 6.3% move for the Zacks Medical sector and the 13.8% 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 October 30, 2025, Cardinal reported EPS of $2.55 versus consensus estimate of $2.21 while it beat the consensus revenue estimate by 8.39%.For the current fiscal year, Cardinal is expected to post earnings of $9.86 per share on $258.58 in revenues. This represents a 19.66% change in EPS on a 16.18% change in revenues. For the next fiscal year, the company is expected to earn $10.9 per share on $277.02 in revenues. This represents a year-over-year change of 10.53% and 7.13%, 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). 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 A. The stock's Growth and Momentum Scores are A and C, respectively, giving the company a VGM Score of A.In terms of its value breakdown, the stock currently trades at 21.3X current fiscal year EPS estimates, which is a premium to the peer industry average of 15X. On a trailing cash flow basis, the stock currently trades at 18X versus its peer group's average of 12X. Additionally, the stock has a PEG ratio of 1.52. 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 supersedes any trend on the style score front. Fortunately, Cardinal currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.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 meets the list of requirements. 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 D.Earnings were strong last quarter. McKesson Corporation beat our consensus estimate by 10.54%, and for the current fiscal year, MCK is expected to post earnings of $38.42 per share on revenue of $408.3 billion.Shares of McKesson Corporation have gained 8% over the past month, and currently trade at a forward P/E of 22.54X and a P/CF of 22.29X.The Medical - Dental Supplies industry is in the top 22% 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.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the favorite stock to gain +100% or more in the months ahead. They includeStock #1: A Disruptive Force with Notable Growth and ResilienceStock #2: Bullish Signs Signaling to Buy the DipStock #3: One of the Most Compelling Investments in the MarketStock #4: Leader In a Red-Hot Industry Poised for GrowthStock #5: Modern Omni-Channel Platform Coiled to SpringMost of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. While not all picks can be winners, previous recommendations have soared +171%, +209% and +232%.Download Atomic Opportunity: Nuclear Energy's Comeback free today.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