A #1-Ranked Stock Hiding in Plain Sight

Dear WallStreetZen Member,

This week, our Smart Leverage Alert centers on Cardinal Health (CAH).

This company represents one of the backbones of American healthcare by moving medications and supplies to hospitals and pharmacies nationwide. It’s been quietly delivering some of its strongest results in years … Yet the market still hasn't given it credit.

In the last quarter, Cardinal Health grew adjusted EPS 35% year over year to $3.17, beating Wall Street's $2.79 estimate, and raised full-year guidance again. But a single non-cash accounting charge dragged the headline number lower, and investors have stayed fixated on that instead of the business underneath it.

Within that disconnect lies the potential opportunity. The market treats CAH like a sleepy distributor, yet revenue topped $60 billion in the quarter, up 11%, and management now guides to full-year adjusted EPS growth of roughly 30%.

Our Zen Ratings model confirms the strength. CAH earns an A rating, which amounts to a Strong Buy recommendation, landing in the top 4% of more than 4,600 stocks. It's the #1-ranked stock in the A-rated Medical Distribution industry.

Looking at the Component Grades that shape the overall grade, CAH ranks in the top 12% for Growth, the top 11% for Safety, and the top 3% for Sentiment . That mix points to a durable, defensively positioned business Wall Street is warming to — quality the market underrates until the numbers force the issue.

Our Logic

With Zen Options Essentials, we use "Smart Leverage" — Deep-In-The-Money options that let you control shares for a fraction of the cost, with your maximum risk strictly defined from day one.

The "Smart Leverage" Setup: (Ticker Name) Long Call

Given the strong fundamental case and the disconnect between CAH's earnings power and its valuation, here's how we're structuring the trade using Smart Leverage — Deep-In-The-Money calls that move nearly dollar-for-dollar with the stock, but with strictly defined risk from day one. 

Instead of committing around $23,000 to own 100 shares outright, a Deep-In-The-Money Call lets you control those same shares for a little over $4,000.

• The Play: $200 Strike Call (Expiring Jan 15, 2027)
• Delta: 0.8225 — Right in our sweet spot. This option moves nearly dollar-for-dollar with the stock. You get the upside with significantly less capital at risk.
• Intrinsic Value: ~73% — Nearly three-quarters of what you pay is real value, not time decay. This is what separates a Smart Leverage setup from the kind of speculative options trades that blow up amateur accounts.
• Leverage Multiple: 3.59x — Every dollar moves 3.6x harder than the stock, while the deep ITM strike still keeps meaningful downside protection versus a naked speculative call.
• The Target: For this position to double (+100%), CAH only needs to reach approximately $282.50 — a roughly 23% move in the stock that produces a 100% return on the option premium.

Why Options Over Shares?

A 23% move in CAH stock would be a solid return for shareholders. In this Deep-In-The-Money option, that same move has the potential to double your investment while putting around $4,000 at risk instead of $23,000.

That's the power of Smart Leverage: stock-like upside with a fraction of the capital and strictly defined risk from day one.

What To Do Next?

CAH is just one of the setups our Zen Options Essentials TradeFinder identified this week.

And the best part? You don't need to spend hours doing research to find these trades. The TradeFinder does the heavy lifting — scanning for Deep-In-The-Money options with the optimal Delta, the right Intrinsic Value, and the right Leverage Multiple — so you can evaluate a trade like this in minutes.

How is that possible?

Because the best options trades aren't about picking exotic strategies or timing the market perfectly. They're about finding great stocks…and using Smart Leverage to control your risk while amplifying your upside.

EXACTLY what the Zen Ratings model is built to find.

EXACTLY what this methodology has been delivering.

If you'd like to see how this entire methodology works, start by watching our presentation, "Options Trading with the Zen Ratings." It walks through the Smart Leverage framework, the TradeFinder, and how we identify these opportunities step by step.

Options Trading with the Zen Ratings >

Or, perhaps you are ready to start using Smart Leverage by becoming a Zen Options Essentials member. Click below to join: 

Zen Options Essentials >

Happy Investing,

Mijusko Sibalic

Senior Writer, Zen Options Essentials

Want to get in touch? Email us at news@wallstreetzen.com.