Cardinal Health and FMC Corporation have been highlighted as Zacks Bull and Bear of the Day

For Immediate Release

Chicago, IL – February 23, 2026 – Zacks Equity Research shares Cardinal Health CAH as the Bull of the Day and FMC Corporation FMC as the Bear of the Day. In addition, Zacks Equity Research provides analysis on JPMorgan JPM, Bank of America BAC and Citigroup C.

Here is a synopsis of all five stocks:

Bull of the Day:

Cardinal Health, a Zacks Rank #1 (Strong Buy), operates as a healthcare services and products company in the United States and internationally. The company is essentially a middleman in the medical supply chain, as it purchases and delivers medications and devices to healthcare facilities such as hospitals and pharmacies.

The stock recently broke out to a 52-week high on increasing volume. Shares continue to display relative strength as buying pressure accumulates in this market leader.

Cardinal Health is part of the Zacks Medical – Dental Supplies industry group, which currently ranks in the top 32% out of approximately 250 Zacks Ranked Industries. Because it is ranked in the top half of all Zacks Ranked Industries, we expect this group to outperform the market over the next 3 to 6 months.

Stocks in this industry are relatively undervalued based on traditional valuation metrics. A leading component of this group, Cardinal Health is also projected to experience above-average earnings growth, which signifies a powerful combination that should lead to higher prices in the future.

Historical research studies suggest that approximately half of a stock's price appreciation is due to its industry grouping. In fact, the top 50% of Zacks Ranked Industries outperforms the bottom 50% by a factor of more than 2 to 1.

It's no secret that investing in stocks that are part of leading industry groups can give us a leg up relative to the market. By focusing on leading stocks within the top 50% of Zacks Ranked Industries, we can dramatically improve our stock-picking success.

Company Description

Cardinal Health is one of the world's largest healthcare services and products providers. The company serves nearly 90% of U.S. hospitals, delivers more than 43,000 pharmaceutical shipments daily, and manages a broad portfolio of medical, surgical, and laboratory products.

In addition, the drug wholesaler offers customized solutions for pharmacies, ambulatory surgery centers, clinical laboratories, and physician offices. It dispenses branded and generic pharmaceutical, specialty pharmaceutical, and over-the-counter healthcare and consumer products. Cardinal Health also delivers specialty drug distribution services in areas such as oncology, gastroenterology, and rheumatology.

Earnings Trends and Future Estimates

Cardinal Health has shown a consistent ability to deliver positive earnings surprises; the leading healthcare company surpassed the earnings mark in each of the past 14 quarters. The nationwide drug distributor delivered a trailing four-quarter average surprise of over 9%, reflecting strong execution.

This track record aligns perfectly with the power of the Zacks Rank system, which prioritizes stocks showing upward earnings revisions.

Earlier this month, Cardinal Health posted a double-beat report relative to our consensus expectations, with sales soaring 18.8% from the year-ago period to $65.6 billion, alongside a sizable 36.3% year-over-year growth rate in adjusted EPS ($2.63). It also raised its full-year outlook following the strong quarter, signaling confidence in its underlying businesses. Cardinal Health expects its specialty products to generate more than $50 billion in sales during the current fiscal year.

The Ohio-based company has been the beneficiary of improving earnings estimate revisions as of late. Looking into fiscal 2026, analysts have raised their EPS estimates by 4.35% in the past 60 days. The Zacks Consensus Estimate now stands at $10.31 per share, reflecting over 25% growth relative to the prior year.

Let's Get Technical

Cardinal Health's stock performance is reflective of the fundamental story as shares have surged to a series of 52-week highs. Only stocks that are in extremely powerful uptrends are able to make this type of price move and widely outperform the market. This is the kind of stock we want to include in our portfolio – one that is trending well and receiving positive earnings estimate revisions.

Notice how shares remain above upward-sloping 50-day (blue line) and 200-day (red line) moving averages. The stock has advanced nearly 80% over the past year, and momentum appears to be continuing this year. With both strong fundamentals and technicals, CAH stock is poised to continue its outperformance.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. As we know, Cardinal Health has recently witnessed positive revisions. As long as this trend remains intact (and CAH continues to deliver earnings beats), the stock will likely continue its bullish run throughout this year.

Bottom Line

Backed by a leading industry group and robust history of earnings beats, it's not difficult to see why this company is a compelling investment. Currently, CAH stock carries a Zacks Rank #1 (Strong Buy), driven by favorable estimate momentum.

Solid institutional buying should continue to provide a tailwind for the stock price. Robust fundamentals combined with a strong technical trend certainly justify adding shares to the mix. If you haven't already done so, be sure to put Cardinal Health on your shortlist.

Bear of the Day:

FMC Corporation, an agricultural sciences company, provides crop protection solutions to farmers in North America, Latin America, Europe, the Middle East, Africa, and Asia. The company develops and sells crop protection chemicals such as insecticides, herbicides, and fungicides.

Its biological and seed treatment products are used in agriculture to enhance crop yield and control a range of insects, weeds, and disease. FMC also participates in non-agricultural markets for pest control. The farming solutions provider markets its products through its own sales organization, as well as through alliance partners and independent distributors.

Key challenges remain for FMC in 2026. Major credit rating agencies – including S&P Global, Fitch, and Moody's – downgraded FMC to junk status recently, driven by weak financial metrics, debt pressures, and a challenging agricultural market. In response to the pressure, the company reduced its dividend by $250 million annually late last year.

As we'll see, FMC reported a significant revenue miss in the latest quarter and is experiencing a sustained agricultural downcycle. Weaker prices, partly due to competition for key portfolio products, are expected to continue to weigh on sales.

Tariff charges and higher costs are also expected to impact the company's margins. The lack of growth potential in the year ahead simply doesn't warrant a bullish stance.

The Zacks Rundown

A Zacks Rank #5 (Strong Sell) stock, FMC Corp. is a component of the Zacks Agriculture – Operations industry group, which currently ranks in the bottom 23% out of approximately 250 Zacks Ranked Industries. As such, we expect this industry group as a whole to underperform the market over the next 3 to 6 months.

Stocks in the bottom tiers of industries can often be intriguing short candidates. While individual stocks have the ability to outperform even when they're part of a lagging industry, the inclusion in a weaker group serves as a headwind for any potential rallies and the journey forward is that much more difficult.

FMC stock has widely underperformed the market over the past year. A recent uptick off the lows of 2025 presents a compelling short opportunity.

History of Earnings Misses & Deteriorating Outlook

FMC missed the earnings mark in the latest quarterly report, breaking a string of past beats and signaling caution ahead. Adjusted earnings of $1.20 per share sank 33% relative to the $1.79/share in the prior-year period.

During the fourth quarter, FMC posted revenues of $1.08 billion, falling about 6% shy of the $1.15 billion estimate. The top-line figure plunged 11.5% versus the year-ago quarter. Falling short of projections is a recipe for underperformance, and FMC is no exception.

The agrochemicals company has been on the receiving end of negative earnings estimate revisions as of late. Looking into the current quarter, analysts cut estimates by a whopping 246.67% in the past 60 days. The Zacks Consensus EPS Estimate is now -$0.22 per share, translating to a -222.2% decline relative to the same period in the prior year. Revenues are anticipated to drop -8.5% during the quarter to $723.9 million.

Falling earnings estimates are a huge red flag and need to be respected. Negative growth year-over-year is the type of trend that bears like to see.

Technical Outlook

As illustrated below, FMC stock is in a sustained downtrend. Notice how the stock has been widely underperforming the major indices. Also note that shares are trading below a downward-sloping 200-day (red line) moving average – another good sign for the bears.

FMC stock has experienced what is known as a "death cross," whereby the stock's 50-day moving average (blue line) crosses below its 200-day moving average. Shares would have to make an outsized move to the upside and show increasing earnings estimate revisions to warrant taking any long positions. The stock has fallen nearly 60% in the past year alone.

Final Thoughts

A deteriorating fundamental and technical backdrop show that this stock is not set to make its way to new highs anytime soon. The fact that FMC stock is included in one of the worst-performing industry groups adds yet another headwind to a long list of concerns.

A shaky earnings history and falling future earnings estimates will likely serve as a ceiling to any potential rallies, nurturing the stock's downtrend. Recent credit and brokerage downgrades have the stock fighting an uphill battle.

Potential investors may want to give this stock the cold shoulder, or perhaps include it as part of a short or hedge strategy. Bulls will want to steer clear of FMC until the situation shows major signs of improvement.

Additional content:

Will JPMorgan's Bets on Branches Translate to Revenue Growth?

JPMorgan is leaning into an old-school growth lever in a digital era: physical distribution. The bank plans to open more than 160 new branches across more than 30 U.S. states in 2026, paired with renovations of hundreds of existing locations and roughly 1,100 new hires. This is part of the company's broader branch expansion plan announced in 2024 to open more than 500 branches by 2027.

JPM's strategy is to expand wallet share in markets where its presence is underpenetrated. New branches are expected to be front doors for acquiring primary checking relationships and retail deposits, the funding base that drives balance sheet growth and recurring net interest income (NII) over time. Additionally, the bank's goal is to lift its share of U.S. retail deposits, underscoring how branch density can translate into durable funding advantages.

JPMorgan's branches also serve as distribution for higher-fee products. In-person interactions can accelerate adoption of credit cards, mortgages, small-business services and wealth offerings, including J.P. Morgan-branded financial centers (21 already operating and 10 to be opened this year) aimed at mass-affluent customers. This cross-sell potential is beneficial as it helps the company to diversify revenue beyond NII and keep customer churn low.

JPMorgan's footprint expansion targets fast-growing regions and communities where peers have pulled back, allowing the bank to seed relationships early and scale over time. If executed well, each new site can evolve from acquisition outpost to full-service advisory hub. More branches in new neighborhoods can compound into more deposits, more product adoption and a wider revenue base — the building blocks of sustained top-line growth.

What JPM's Peers are Doing to Expand Cross-Sell Opportunities

The two closest peers of JPM are Bank of America and Citigroup.

Bank of America's new BofA Rewards ties loyalty to checking, turning basic accounts into a cross-sell gateway. By incentivizing direct deposit and bill pay, Bank of America intends to deepen primary-bank relationships, boost card adoption and spend, nudge asset consolidation across BofA/Merrill and pull more loan activity, lifting fees, payments and NII.

Citigroup is widening cross-sell by combining its U.S. retail bank with wealth, aligning Citigold and mass-market clients in one pipeline. Citigroup is also uplifting U.S. consumer cards as a core unit, helping bankers bundle deposits, cards, lending and advice through a centralized client organization across digital channels.

JPMorgan's Price Performance, Valuation and Estimates

JPMorgan's shares have gained 16.6% over the past six months.

From a valuation standpoint, JPM trades at a 12-month trailing price-to-tangible book (P/TB) of 3.04X, below the industry average.

The Zacks Consensus Estimate for JPMorgan's 2026 earnings indicates a 5.5% rise on a year-over-year basis, while 2027 earnings are expected to grow at a rate of 7.6%. In the past week, earnings estimates for 2026 and 2027 have moved upward.

JPM currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

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