Cardinal Health (CAH) Continues to Benefit from Rising Demand

Brown Advisory, an investment management company, released its “Brown Advisory Mid-Cap Growth Strategy” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The strategy underperformed its benchmark, the Russell Midcap® Growth Index, in the third quarter of 2025, which increased approximately 3%.  In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Brown Advisory Mid-Cap Growth Strategy highlighted stocks such as Cardinal Health, Inc. (NYSE:CAH). Cardinal Health, Inc. (NYSE:CAH) is a healthcare services and products company. The one-month return for Cardinal Health, Inc. (NYSE:CAH) was -4.96%, and its shares gained 68.33% over the last 52 weeks. On December 18, 2025, Cardinal Health, Inc. (NYSE:CAH) stock closed at $199.10 per share, with a market capitalization of $47.305 billion.

Brown Advisory Mid-Cap Growth Strategy stated the following regarding Cardinal Health, Inc. (NYSE:CAH) in its third quarter 2025 investor letter:

"Cardinal Health, Inc. (NYSE:CAH), one of the three major U.S. drug distributors, continues to benefit from rising demand for complex specialty and biologic therapies, where it is expanding value-added service offerings. The company also serves adjacent markets such as third party logistics and the fast-growing nuclear medicine space. Its medical distribution business remains an execution turnaround story, with new management narrowing service gaps with peers and showing early progress in improving margins."

Cardinal Health, Inc. (NYSE:CAH) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 55 hedge fund portfolios held Cardinal Health, Inc. (NYSE:CAH) at the end of the third quarter, compared to 59 in the previous quarter. In the first quarter of fiscal 2026, Cardinal Health, Inc. (NYSE:CAH) revenue increased 22% year-over-year to $64 billion. While we acknowledge the potential of Cardinal Health, Inc. (NYSE:CAH) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Cardinal Health, Inc. (NYSE:CAH) and shared the list of best stocks to buy for the long term. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.