Dublin, Ohio-based Cardinal Health, Inc. (CAH) is a healthcare services and products company with a market cap of $35.4 billion. It provides customized solutions for hospitals, healthcare systems, pharmacies, ambulatory surgery centers, clinical laboratories, physician offices, and patients in the home. 

Companies worth $10 billion or more are typically classified as “large-cap stocks,” and Cardinal Health fits the label perfectly, with its market cap exceeding this threshold, underscoring its size, influence, and dominance within the medical distribution industry. The company focuses particularly on complex, high-need therapeutic areas and aims to differentiate itself via analytics, technology platforms, and value-added services. With decades of experience, global operations, and deep relationships across the healthcare ecosystem, CAH stands out as a trusted, full-spectrum supply chain and specialty solutions partner.

Despite its notable strength, this healthcare services provider has slipped 11.9% from its 52-week high of $168.44, reached on Jul. 1. Moreover, shares of CAH have declined 8.6% over the past three months, considerably lagging behind the S&P 500 Index’s ($SPX) 9.5% rise during the same time frame.

Nonetheless, in the longer term, CAH has rallied 31% over the past 52 weeks, outperforming SPX's 17.3% uptick over the same time period. Moreover, on a YTD basis, shares of CAH are up 25.5%, compared to SPX’s 12.3% return.

To confirm its recent bearish trend, CAH has been trading below its 50-day moving average since late July. However, it has been trading above its 200-day moving average over the past year. 

On Aug. 12, shares of Cardinal Health plunged 7.2% after its mixed Q4 earnings release. While the company’s adjusted EPS of $2.08 surged 13% from the year-ago quarter and surpassed the consensus estimates of $2.03, its revenue of $60.2 billion fell short of analyst expectations by a small margin. This revenue miss, despite a marginal year-over-year rise, might have dampened investor confidence. 

CAH has lagged behind its rival, McKesson Corporation’s (MCK) 33.4% rise over the past 52 weeks. However, it has outpaced MCK’s 21.7% return on a YTD basis. 

Despite CAH’s recent underperformance, analysts remain highly optimistic about its prospects. The stock has a consensus rating of "Strong Buy” from the 15 analysts covering it, and the mean price target of $179.73 suggests a 21.1% premium to its current price levels.