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.
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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.
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