Cardinal Health CAH recently announced the ongoing construction of a new distribution center in Fort Worth, TX, to support its at-Home Solutions business.

Similar to the distribution centers recently launched in South Carolina and Ohio, this new facility incorporates advanced robotics and automation technology. These innovations enhance efficiency by supporting employees in tasks such as picking, packing, and shipping while also improving speed and workplace safety.

Likely Trend of CAH Stock Following the News

Following the announcement, shares of the company closed flat at $124.7 yesterday. In the past three months, CAH’s shares have gained 11.4% compared with the industry’s 4.9% growth. The S&P 500 has increased 0.9% in the same time frame.

Cardinal Health's opening of a new distribution center in Fort Worth, TX, can boost its stock price in the long run by improving efficiency, reducing delivery times, and meeting growing demand in the healthcare sector. This expansion strengthens the company's infrastructure, supports revenue growth, and showcases confidence in future operations. These factors are likely to attract investor interest as they align with sustained business growth and market leadership.

Meanwhile, CAH currently has a market capitalization of $30.02 billion. Its earnings yield is 6.3%, which is higher than the industry’s yield of 5.5%. In the last reported quarter, CAH delivered an earnings surprise of 14.63%.

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More on CAH’s New Distribution Center in Texas

Cardinal Health's new 340,000-square-foot distribution center in Fort Worth is likely to consolidate two existing warehouses, increasing inventory capacity by 74,000 square feet while maintaining the current workforce. Once operational, it is likely to handle 10,000 daily shipments to homes nationwide, streamlining operations and improving service efficiency.

The facility integrates advanced technologies, including 74 robots, an automated conveyor system, and custom box-making machines that produce 500 boxes per hour with minimal waste. A cloud-based warehouse management system powered by artificial intelligence (AI) will unify operations, ensuring flexibility and efficiency across inventory, labor, and transportation management.

The new distribution center is set to significantly enhance Cardinal Health's at-Home Solutions business by consolidating operations and increasing inventory capacity to better handle growing demand. Advanced robotics, automated systems, and AI-driven management will streamline package handling and shipping. This improved efficiency and scalability will strengthen the business’s ability to deliver medical supplies directly to patients' homes, boosting reliability and customer satisfaction while reducing costs and positioning Cardinal Health for sustained growth in home healthcare solutions.

Per the news release, the distribution center is anticipated to be fully operational in the summer of 2025.

CAH’s Notable Distribution Network

Cardinal Health is strategically expanding its U.S. operations to better serve healthcare providers and patients by investing in new facilities and technology solutions. In September 2024, CAH announced the opening of a new distribution center in Greenville, SC. In the same month, CAHand Australia-based Telix recently entered a deal, selecting CAH as a commercial radiopharmaceutical distributor to supply finished unit doses of Telix's PET agent, Zircaix, for the imaging of kidney cancer in the United States, subject to regulatory approval.

In August 2024, CAH announced plans to open a new state-of-the-art distribution center in Walton Hills, OH, to support its medical products and distribution business in the United States. In 2023, the company opened two distribution centers in Central Ohio and a medical products replenishment center in New York, bolstering inventory levels and supply chain efficiency.

CAH’s Zacks Rank & Other Stocks to Consider

CAH presently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the broader medical space are Masimo MASI, Accuray ARAY and Abbott Laboratories ABT.

Masimo, carrying a Zacks Rank #2 at present, has an estimated growth rate of 11.8% for 2025. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

MASI’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 17.10%. Its shares have risen 31.7% against the industry’s 1% decline in the past six months.

Accuray, carrying a Zacks Rank #2 at present, has an estimated growth rate of 1200% for 2025. Its earnings missed estimates in three of the trailing four quarters and met in one, delivering an average negative surprise of 141.97%.

ARAY’s shares have gained 8.8% against the industry’s 1% decline in the past six months.

Abbott, carrying a Zacks Rank of 2 at present, has an estimated earnings growth rate of 10% for 2025. It delivered a trailing four-quarter average earnings surprise of 1.64%.

ABT’s shares have risen 8.5% in the past six months compared with the industry’s 7.2% growth.

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