Cardinal Health (NYSE:CAH) was upgraded by Zacks Investment Research from a “strong sell” rating to a “hold” rating in a research report issued on Tuesday.

According to Zacks, “In recent times, Cardinal Health has witnessed encouraging performance in the Medical segment. The Pharmaceutical segment has continued to register strong growth in the Specialty business and gained a large number of Pharmaceutical Distribution customers. Further, the company is banking on strategic buyouts to drive growth. Also, the company’s supply agreements represent significant long-term opportunities. On the flip side, profits in the Pharmaceutical segment have been hurt by generic pharmaceutical pricing issues. Huge investments in Pharmaceutical IT platform and lackluster generics performance are likely to mar Cardinal Health’s operational efficiencies in the upcoming quarters. Cordis-related tax rate increase has also been a major dampener. Recently, the company closed the divestiture of Cardinal Health China distribution. Overall, Cardinal Health underperformed its industry in a year's time.”

A number of other research firms also recently issued reports on CAH. TheStreet raised shares of Cardinal Health from a “c+” rating to a “b-” rating in a report on Tuesday, March 13th. Leerink Swann set a $65.00 price objective on shares of Cardinal Health and gave the stock a “buy” rating in a report on Saturday, May 5th. Argus raised shares of Cardinal Health from a “hold” rating to a “buy” rating and set a $85.00 price objective on the stock in a report on Monday, April 2nd. Barclays cut their price objective on shares of Cardinal Health from $74.00 to $68.00 and set an “equal weight” rating on the stock in a report on Monday, April 16th. Finally, Royal Bank of Canada set a $62.00 price objective on shares of Cardinal Health and gave the stock a “hold” rating in a report on Friday, May 4th. Four analysts have rated the stock with a sell rating, ten have assigned a hold rating and four have given a buy rating to the company. The company has an average rating of “Hold” and an average target price of $67.80.

Shares of CAH stock opened at $49.50 on Tuesday. The firm has a market cap of $15.27 billion, a price-to-earnings ratio of 9.17, a price-to-earnings-growth ratio of 1.42 and a beta of 1.01. The company has a debt-to-equity ratio of 1.20, a current ratio of 1.10 and a quick ratio of 0.54. Cardinal Health has a 12 month low of $48.28 and a 12 month high of $78.89.

Cardinal Health (NYSE:CAH) last announced its quarterly earnings results on Thursday, May 3rd. The company reported $1.39 EPS for the quarter, missing the Zacks’ consensus estimate of $1.51 by ($0.12). The business had revenue of $33.63 billion for the quarter, compared to the consensus estimate of $33.61 billion. Cardinal Health had a net margin of 1.26% and a return on equity of 23.39%. analysts forecast that Cardinal Health will post 4.92 EPS for the current year.

Large investors have recently modified their holdings of the stock. Vident Investment Advisory LLC purchased a new position in shares of Cardinal Health in the 4th quarter worth about $579,000. Russell Investments Group Ltd. boosted its holdings in shares of Cardinal Health by 103.7% in the 1st quarter. Russell Investments Group Ltd. now owns 1,280,457 shares of the company’s stock worth $80,241,000 after buying an additional 651,833 shares during the last quarter. Stone Ridge Asset Management LLC purchased a new position in shares of Cardinal Health in the 4th quarter worth about $354,000. Vulcan Value Partners LLC boosted its holdings in shares of Cardinal Health by 3.5% in the 4th quarter. Vulcan Value Partners LLC now owns 4,786,270 shares of the company’s stock worth $293,255,000 after buying an additional 161,654 shares during the last quarter. Finally, Knights of Columbus Asset Advisors LLC boosted its holdings in shares of Cardinal Health by 15.0% in the 1st quarter. Knights of Columbus Asset Advisors LLC now owns 10,729 shares of the company’s stock worth $672,000 after buying an additional 1,400 shares during the last quarter. 91.97% of the stock is currently owned by institutional investors.

Cardinal Health Company Profile

Cardinal Health, Inc operates as an integrated healthcare services and products company worldwide. The company's Pharmaceutical segment distributes branded and generic pharmaceutical, specialty pharmaceutical, over-the-counter healthcare, and consumer products to retailers, hospitals, and other healthcare providers.

Get a free copy of the Zacks research report on Cardinal Health (CAH)

For more information about research offerings from Zacks Investment Research, visit Zacks.com

Analyst Recommendations for Cardinal Health (NYSE:CAH)

Receive News & Ratings for Cardinal Health Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Cardinal Health and related companies with MarketBeat.com's FREE daily email newsletter.