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StocksUpdated×3•Originally published 28 April 2026•Updated 30 April 2026•

1 min read

William Blair Initiates Coverage on Cardinal Health and McKesson with Outperform Ratings

Key Facts

1William Blair initiated coverage on CAH with an Outperform rating despite valuations suggesting the stock is significantly overvalued.

2McKesson received an Outperform rating from William Blair, while noting $3.8 million in recent insider selling.

William Blair has initiated coverage on healthcare distributors Cardinal Health (CAH) and McKesson (MCK) with 'Outperform' ratings, citing strong sector momentum. Cardinal Health recently raised its fiscal-year adjusted earnings guidance for the second time this year, a move that helped investors overlook the company's mixed quarterly performance. This follows a previous earnings beat where the company reported $3.17 per share against a $2.8 estimate. Meanwhile, Tenet Healthcare (THC) contributed to the sector's positive outlook with earnings of $4.82 per share, surpassing analyst expectations. McKesson also maintained its optimistic rating despite recent reports of insider selling activity. These updates underscore analyst confidence in the dominant market positions and long-term growth potential of these pharmaceutical distribution leaders.

about 1 month ago

Version History

Version 3about 1 month ago

What changed: Cardinal Health has increased its full-year earnings guidance for the second time in 2024, offsetting concerns regarding mixed results in its latest quarterly report.

Version 2about 1 month ago

What changed: Updated the story to include specific earnings figures for CAH and the inclusion of THC's quarterly earnings beat.

Version 1about 1 month ago

What changed: Updated the story to include Cardinal Health's strong Q3 earnings beat and its subsequent upward revision of full-year financial guidance.