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CAH vs MCK
Which Stock Would AI Choose? Cardinal Health (CAH) vs. McKesson (MCK) Stock Comparison
Key Takeaways
- Two healthcare distribution giants: Cardinal Health (CAH) and McKesson (MCK) both operate large pharmaceutical distribution networks while expanding into higher-margin specialty and oncology services.
- Momentum favors CAH: Cardinal Health has recently traded near new 52-week highs, while McKesson has remained below its early-2026 peak.
- Scale differs meaningfully: McKesson generates materially higher total revenue, while Cardinal Health has delivered a faster recent growth rate in adjusted earnings per share (EPS).
- Both are expanding in specialty care: CAH has built out gastroenterology and urology platforms, while MCK has grown its oncology and multispecialty network.
- Valuation and positioning diverge: Each stock carries distinct catalysts and risk factors that shape its current market positioning.
Introduction
Cardinal Health and McKesson are two of the largest pharmaceutical distributors in the United States, yet they increasingly compete as diversified healthcare services platforms. Both have used acquisitions to move beyond low-margin distribution into specialty, oncology, and provider services that offer more attractive economics. For investors, this is a classic stock comparison: two companies with similar industry exposure but different scale, growth profiles, and near-term momentum. Traders evaluating relative performance and long-term investors assessing market positioning will find the contrast useful, particularly given that the two names have recently followed different price trajectories despite shared industry tailwinds and headwinds.
CAH Overview and Recent Performance
Cardinal Health, Inc. (CAH) distributes pharmaceuticals and medical products while building a specialty-services footprint through acquisitions such as GI Alliance (gastroenterology), Urology America, and Solaris. For its fiscal year ended June 30, 2026, the company reported revenue of $254.2 billion, up 14% year over year, and non-GAAP diluted EPS of $11.26, up 37%. Its largest segment, Pharmaceutical and Specialty Solutions, drove much of the growth.
In recent weeks, the stock has exhibited notable strength, reaching a new 52-week high and outperforming the broader market on a year-to-date basis. Management issued fiscal 2027 non-GAAP EPS guidance of $12.40 to $12.60, implying 13–15% growth, and the board authorized an additional $5 billion in share repurchases. Sentiment has been supported by consistent earnings beats and growing confidence in the company's specialty build-out, though headwinds such as Inflation Reduction Act drug-pricing adjustments and brand-drug price declines remain relevant considerations.
MCK Overview and Recent Performance
McKesson Corporation (MCK) is the largest U.S. pharmaceutical distributor by revenue and has been expanding its oncology, multispecialty, and biopharma services businesses. For its fiscal year ended March 31, 2026, the company reported revenue of $403.4 billion, up 12%, and adjusted diluted EPS of $39.11, up 18%. It operates across North American Pharmaceutical, Oncology & Multispecialty, Prescription Technology Solutions, and Medical-Surgical Solutions segments.
Recent market activity has been more mixed for MCK. The stock rose after an agreement in principle to extend its pharmaceutical distribution partnership with CVS Health through June 2032, but it still trades below its 52-week high set earlier in 2026. The company reaffirmed fiscal 2027 adjusted EPS guidance and its long-term EPS growth target of 13–16%. McKesson is also advancing a planned separation of its Medical-Surgical Solutions segment and has announced a planned Precision Medicine Group acquisition, signaling continued portfolio reshaping.
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Head-to-Head Comparison
Both companies share a core pharmaceutical-distribution business, but their growth strategies differ in emphasis. McKesson commands greater overall scale and has tilted toward oncology and multispecialty provider networks, while Cardinal Health has focused its specialty expansion on gastroenterology and urology platforms alongside nuclear and precision health solutions.
On recent momentum, CAH has shown stronger relative price performance, trading near record levels, whereas MCK has lagged its own highs. From a growth standpoint, Cardinal Health's adjusted EPS growth of 37% in its latest fiscal year outpaced McKesson's 18%, though McKesson's larger base and long-term EPS growth target of 13–16% reflect a more mature, steady trajectory.
Risk profiles also differ. Both face drug-pricing regulation, manufacturer price declines, and GLP-1 (glucagon-like peptide-1) medication volume swings. McKesson adds execution risk around its planned Medical-Surgical separation and acquisitions, while Cardinal Health carries integration risk from its rapid specialty build-out. Valuation and dividend growth trajectories further distinguish the two, giving investors distinct trade-offs between scale, momentum, and capital-return profiles.
Tickeron AI Verdict
Based on observable factors such as trend consistency, earnings momentum, and relative positioning, Tickeron's AI would likely lean toward Cardinal Health (CAH) in the current environment. The stock's recent climb to new 52-week highs, faster adjusted EPS growth, and constructive forward guidance suggest stronger near-term trend consistency than McKesson's more mixed price action. That said, McKesson's larger scale, long-dated customer contracts, and diversified oncology platform provide stability that could appeal under a different risk regime. The assessment is probabilistic rather than definitive: CAH currently shows the more favorable momentum profile, while MCK offers a steadier, more diversified long-term footprint.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is CAH is a Buy and MCK is a Buy.
CAH in upward trend: 10-day moving average moved above 50-day moving average on October 13, 2026
The 10-day moving average for CAH crossed bullishly above the 50-day moving average on October 13, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 10 of 12 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 83%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 01, 2026. You may want to consider a long position or call options on CAH as a result. In 56 of 85 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 66%.
The Moving Average Convergence Divergence (MACD) for CAH just turned positive on October 02, 2026. Looking at past instances where CAH's MACD turned positive, the stock continued to rise in 27 of 41 cases over the following month. The odds of a continued upward trend are 66%.
CAH moved above its 50-day moving average on October 08, 2026 date and that indicates a change from a downward trend to an upward trend.
Following a +2.55% 3-day Advance, the price is estimated to grow further. Considering data from situations where CAH advanced for three days, in 264 of 396 cases, the price rose further within the following month. The odds of a continued upward trend are 67%.
Bearish Trend Analysis
The 10-day RSI Indicator for CAH moved out of overbought territory on October 23, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 41 similar instances where the indicator moved out of overbought territory. In 21 of the 41 cases, the stock moved lower in the following days. This puts the odds of a move lower at 51%.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 14 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where CAH declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 43%.
CAH broke above its upper Bollinger Band on October 15, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for CAH entered a downward trend on October 08, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron Profit vs. Risk Rating rating for this company is 3 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 75, placing this stock better than average.
The Tickeron Price Growth Rating for this company is 7 (best 1 - 100 worst), indicating outstanding price growth. CAH’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is 12 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of 25 (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (-20.045) is normal, around the industry mean (12.135). CAH has a moderately high P/E Ratio (34.329) as compared to the industry average of (10.801). Projected Growth (PEG Ratio) (1.105) is also within normal values, averaging (2.016). Dividend Yield (0.008) settles around the average of (0.142) among similar stocks. P/S Ratio (0.217) is also within normal values, averaging (4.260).
The Tickeron Seasonality Score of 43 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron SMR rating for this company is 99 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
MCK in upward trend: 10-day moving average moved above 50-day moving average on October 05, 2026
The 10-day moving average for MCK crossed bullishly above the 50-day moving average on October 05, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 9 of 11 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 82%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 01, 2026. You may want to consider a long position or call options on MCK as a result. In 63 of 94 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 67%.
The Moving Average Convergence Divergence (MACD) for MCK just turned positive on October 05, 2026. Looking at past instances where MCK's MACD turned positive, the stock continued to rise in 38 of 52 cases over the following month. The odds of a continued upward trend are 73%.
MCK moved above its 50-day moving average on October 01, 2026 date and that indicates a change from a downward trend to an upward trend.
Following a +2.52% 3-day Advance, the price is estimated to grow further. Considering data from situations where MCK advanced for three days, in 254 of 383 cases, the price rose further within the following month. The odds of a continued upward trend are 66%.
Bearish Trend Analysis
The 10-day RSI Indicator for MCK moved out of overbought territory on October 23, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 57 similar instances where the indicator moved out of overbought territory. In 24 of the 57 cases, the stock moved lower in the following days. This puts the odds of a move lower at 42%.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 14 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where MCK declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 43%.
MCK broke above its upper Bollinger Band on October 05, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for MCK entered a downward trend on October 06, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron Profit vs. Risk Rating rating for this company is 8 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 75, placing this stock better than average.
The Tickeron Valuation Rating of 12 (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (-27.519) is normal, around the industry mean (12.169). MCK has a moderately high P/E Ratio (26.730) as compared to the industry average of (10.631). Projected Growth (PEG Ratio) (1.616) is also within normal values, averaging (2.016). Dividend Yield (0.004) settles around the average of (0.142) among similar stocks. P/S Ratio (0.265) is also within normal values, averaging (4.260).
The Tickeron Price Growth Rating for this company is 13 (best 1 - 100 worst), indicating outstanding price growth. MCK’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is 61 (best 1 - 100 worst), pointing to average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Seasonality Score of 75 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron SMR rating for this company is 100 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
CAH | MCK | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 32 | 46 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 25 Undervalued | 12 Undervalued | |
PROFIT vs RISK RATING 1..100 | 3 | 8 | |
SMR RATING 1..100 | 99 | 100 | |
PRICE GROWTH RATING 1..100 | 7 | 13 | |
P/E GROWTH RATING 1..100 | 12 | 61 | |
SEASONALITY SCORE 1..100 | 43 | 75 |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
MCK's Valuation (12) in the Medical Distributors industry is in the same range as CAH (25). This means that MCK’s stock grew similarly to CAH’s over the last 12 months.
CAH's Profit vs Risk Rating (3) in the Medical Distributors industry is in the same range as MCK (8). This means that CAH’s stock grew similarly to MCK’s over the last 12 months.
CAH's SMR Rating (99) in the Medical Distributors industry is in the same range as MCK (100). This means that CAH’s stock grew similarly to MCK’s over the last 12 months.
CAH's Price Growth Rating (7) in the Medical Distributors industry is in the same range as MCK (13). This means that CAH’s stock grew similarly to MCK’s over the last 12 months.
CAH's P/E Growth Rating (12) in the Medical Distributors industry is somewhat better than the same rating for MCK (61). This means that CAH’s stock grew somewhat faster than MCK’s over the last 12 months.
| CAH | MCK | |
|---|---|---|
| RSI ODDS (%) | 2 days ago 51% | 2 days ago 42% |
| Stochastic ODDS (%) | 2 days ago 53% | 2 days ago 43% |
| Momentum ODDS (%) | 2 days ago 66% | 2 days ago 67% |
| MACD ODDS (%) | 2 days ago 66% | 2 days ago 73% |
| TrendWeek ODDS (%) | 2 days ago 44% | 2 days ago 39% |
| TrendMonth ODDS (%) | 2 days ago 65% | 2 days ago 70% |
| Advances ODDS (%) | 9 days ago 67% | 5 days ago 66% |
| Declines ODDS (%) | 2 days ago 43% | 2 days ago 43% |
| BollingerBands ODDS (%) | 2 days ago 45% | 2 days ago 55% |
| Aroon ODDS (%) | 2 days ago 36% | 2 days ago 31% |
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is overvalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
CAH’s FA Score shows that 4 FA rating(s) are green while MCK’s FA Score has 3 green FA rating(s).
- CAH’s FA Score: 4 green, 1 red.
- MCK’s FA Score: 3 green, 2 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
CAH’s TA Score shows that 5 TA indicator(s) are bullish while MCK’s TA Score has 5 bullish TA indicator(s).
- CAH’s TA Score: 5 bullish, 5 bearish.
- MCK’s TA Score: 5 bullish, 5 bearish.
Price Growth
CAH (@Medical Distributors) experienced а -1.77% price change this week, while MCK (@Medical Distributors) price change was -0.41% for the same time period.
The average weekly price growth across all stocks in the @Medical Distributors industry was -6.43%. For the same industry, the average monthly price growth was -9.59%, and the average quarterly price growth was -25.28%.
Reported Earning Dates
CAH is expected to report earnings on Nov 05, 2026.
MCK is expected to report earnings on Nov 04, 2026.
Industries' Descriptions
@Medical Distributors (-6.43% weekly)Healthcare distribution market can be segmented into pharmaceutical product distribution services, medical device distribution services, and biopharmaceutical product distribution services. In addition to serving as intermediaries, many medical distributors also purchase and take legal ownership of pharmaceuticals and manage inventory and credit risk. According to a Deloitte report, pharmaceutical distributors’ core services of efficient product distribution, inventory management, financial risk management, and information-sharing generate $33 billion-$53 billion in value annually to the U.S. health care ecosystem. Some prominent players in the overall medical distribution industry include McKesson Corporation, AmerisourceBergen Corporation, Cardinal Health, Inc. and Patterson Companies, Inc.
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CAH and
Correlation & Price change
A.I.dvisor indicates that over the last year, CAH has been loosely correlated with MCK. These tickers have moved in lockstep 65% of the time. This A.I.-generated data suggests there is some statistical probability that if CAH jumps, then MCK could also see price increases.
| Ticker / NAME | Correlation To CAH | 1D Price Change % | ||
|---|---|---|---|---|
| CAH | 100% | -2.37% | ||
| MCK - CAH | 65% Loosely correlated | -1.14% | ||
| COR - CAH | 58% Loosely correlated | -2.21% | ||
| HSIC - CAH | 12% Poorly correlated | -1.21% | ||
| AHG - CAH | 5% Poorly correlated | +2.46% | ||
| FOCL - CAH | 3% Poorly correlated | +0.48% | ||
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