With Cardinal Health Stock Surging, Have You Considered The Downside?
Cardinal Health (CAH) stock is up 30.3% in 21 trading days. The rally reflects strong earnings, strategic acquisitions, and supply chain tech, but big moves like this often invite a tougher question: is the stock truly resilient when markets reverse?
Before judging its downturn reslience, let’s look at where Cardinal Health stands today.
- Size: Cardinal Health is a $49 Bil company with $223 Bil in revenue currently trading at $207.90.
- Fundamentals: Last 12 month revenue growth of -1.9% and operating margin of 1.0%.
- Liquidity: Has Debt to Equity ratio of 0.17 and Cash to Assets ratio of 0.07
- Valuation: Cardinal Health stock is currently trading at P/E multiple of 31.7 and P/EBIT multiple of 21.4
These metrics point to a Weak operational performance, alongside Moderate valuation – making the stock Unattractive. For details, see Buy or Sell CAH Stock
That brings us to the key consideration for investors chasing this rally: how resilient is CAH stock if markets turn south? This is where our downturn resilience framework comes in. Suppose CAH stock falls 20-30% to $146 – can investors comfortably hold on? Turns out, the stock has fared worse than the S&P 500 index during various economic downturns, based on (a) how much the stock fell and, (b) how quickly it recovered. Below, we dive deeper into each such downturn.
2022 Inflation Shock
- CAH stock fell 26.0% from a high of $62.02 on 4 May 2021 to $45.87 on 1 December 2021 vs. a peak-to-trough decline of 25.4% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 12 April 2022
- Since then, the stock increased to a high of $207.90 on 20 November 2025 $207.90
| CAH | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -26.0% | -25.4% |
| Time to Full Recovery | 132 days | 464 days |
2020 Covid Pandemic
- CAH stock fell 32.1% from a high of $60.42 on 20 February 2020 to $41.00 on 23 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 26 March 2021
| CAH | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -32.1% | -33.9% |
| Time to Full Recovery | 368 days | 148 days |
2018 Correction
- CAH stock fell 48.8% from a high of $83.80 on 15 March 2017 to $42.93 on 24 December 2018 vs. a peak-to-trough decline of 19.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 8 May 2023
| CAH | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -48.8% | -19.8% |
| Time to Full Recovery | 1596 days | 120 days |
2008 Global Financial Crisis
- CAH stock fell 62.3% from a high of $53.89 on 24 April 2007 to $20.32 on 20 November 2008 vs. a peak-to-trough decline of 56.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 10 October 2013
| CAH | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -62.3% | -56.8% |
| Time to Full Recovery | 1785 days | 1480 days |
Feeling jittery about CAH stock? Consider portfolio approach.
The Best Investors Think In Portfolios
Stocks soar and sink – the key is staying invested. A balanced portfolio keeps you in the market, boosts gains and reduces single stock risk
The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.