Summary

• Cardinal Health (CAH) shows strong technical buy signals, with a 3.95% gain since the Trend Seeker buy signal on 3/18 and consistent price appreciation.

• The company operates globally, providing a wide range of healthcare services and products, including pharmaceuticals, medical supplies, and radiopharmaceuticals.

• Barchart's technical indicators highlight CAH's positive momentum, with the stock trading above its 20, 50, and 100-day moving averages and a 21.42% gain in the last year.

• Analysts are bullish, with multiple strong buy ratings and price targets suggesting potential gains, supported by CAH's stable drug distribution business and growing biopharma exposure.

The Chart of the Day belongs to the healthcare company Cardinal Health (CAH) . I found the stock by using Barchart's powerful screening functions to find stocks with the highest technical buy signals, highest Weighted Alpha, superior current momentum and having a Trend Seeker buy signal then used the Flipchart feature to review the charts for consistent price appreciation. Since the Trend Seeker signaled a buy on 3/18 the stock gained 3.95%.

CAH Price vs Daily Moving Averages:

CAH (Barchart)

Cardinal Health, Inc. operates as a healthcare services and products company in the United States, Canada, Europe, Asia, and internationally. It provides customized solutions for hospitals, healthcare systems, pharmacies, ambulatory surgery centers, clinical laboratories, physician offices, and patients in the home. The company operates in two segments: Pharmaceutical and Specialty Solutions, and Global Medical Products and Distribution. It distributes branded and generic pharmaceutical, specialty pharmaceutical, and over-the-counter healthcare and consumer products, as well as medical supplies. The company also provides services to pharmaceutical manufacturers and healthcare providers for specialty pharmaceutical products; offers pharmacy management services to hospitals; operates pharmacies, including pharmacies in community health centers; and repackages generic pharmaceuticals and over-the-counter healthcare products. In addition, it manufactures, sources, and distributes Cardinal Health branded medical, surgical, and laboratory products and devices that include exam and surgical gloves; needles, syringe, and sharps disposals; compression solution, incontinence, nutritional delivery, and wound care products; single-use surgical drapes, gowns, and apparel products; fluid suction and collection systems; urology products; operating room supply products; and electrode product lines. Further, the company distributes a range of national brand products, including medical, surgical, and laboratory products; provides supply chain services and solutions to hospitals, ambulatory surgery centers, clinical laboratories, and other healthcare providers; and assembles and sells sterile, and non-sterile procedure kits. Additionally, it manufactures, prepares, delivers, and distributes radiopharmaceuticals and related treatments; and optimizes direct shipments through integrated technology solutions. The company was incorporated in 1979 and is headquartered in Dublin, Ohio. 

Barchart's Opinion Trading systems are listed below. Please note that the Barchart Opinion indicators are updated live during the session every 20 minutes and can therefore change during the day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report.

Barchart Technical Indicators:

• 100% technical buy signals
• 30.43+ Weighted Alpha
• 21.42% gain in the last year
• Trend Seeker buy signal
• Above its 20, 50 and 100 day moving averages
• 9 new highs and up 7.20% in the last month
• Relative Strength Index 71.79%
• Technical support level at $134.57
• Recently traded at $136.65 with 50 day moving average of $128.13

Fundamental Factors:

• Market Cap $32.37 billion
• P/E 17.17
• Dividend yield 1.51%
• Revenue expected to grow 8.67% next year
• Earnings estimated to increase 5.66% this year and an additional 12.66% next year

Analysts and Investor Sentiment -- I don't buy stocks because everyone else is buying but I do realize that if major firms and investors are dumping a stock it's hard to make money swimming against the tide:

• Wall Street analysts issued 11 strong buy and 4 hold opinions on the stock with price targets between $116 and $156 with a consensus of $141 for a 4% gain
• Value Line has a price target of $138 for a 5% gain
• CFRAs MarketScope give the stock a buy rating with a price target of $146 for a 7% gain and comments:" Our Buy recommendation reflects CAH's attractive upside potential, supported by its defensive drug distribution business providing stability across economic cycles. The growing exposure to biopharma and oncology markets positions it well, with CMS projecting 6.0% prescription drug spending growth through 2032 ."
• MorningStar thinks the stock is 15% over valued but comments:" Strong Prescription Trend and Growing Specialty Business Add Fuel to Cardinal's Momentum."
• There are 1,528 investors rating the stock on Motley Fool and 1,382 think the stock will beat the market while 146 think it won't
• 46,280 investors monitor the stock on Seeking Alpha which rates the stock a hold while Seeking Alpha rates the stock a hold

Additional disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance and reevaluate your stop losses at least on a weekly basis.