Investor Insights

This summary was created by AI, based on 3 opinions in the last 12 months.

Cardinal Health Inc is a leading distributor of pharmaceutical and medical products, with a strong customer base including CVS. The company operates in a triopoly, controlling a significant portion of the US wholesale industry and benefiting from pricing power. Despite concerns about political scrutiny of drug prices, the company continues to generate cash and is considered a cheap stock that is not likely to be impacted by higher interest rates. With steady earnings growth, a predictable cashflow, and potential for increased spending on healthcare, Cardinal Health Inc is well-positioned for the future.

Consensus
Positive
Valuation
Undervalued
BUY ON WEAKNESS
Cardinal Health Inc

It is a great business and he likes the business model. The tailwind is volume since it has picked up especially with the weight loss drugs.

wholesale distributors
TOP PICK
Cardinal Health Inc

Distributes pharma and medical products. Largest customer is CVS. Operates in a triopoly, controlling 90% of the US wholesale industry. Pricing power leads to predictable cashflow. Aging population, weight-loss drugs, diabetes treatments will result in higher spending and volume. Shares trending steadily higher, good technical strength. 15% earnings growth going forward. Yield is 1.9%.

(Analysts’ price target is $113.49)
wholesale distributors
BUY
Cardinal Health Inc

They just reported a revenue and earnings beat, and raised their full-year forecast, but missed operating profit and lowered their full-year forecast for the smaller medical segment. Shares tumbled yesterday and today but is still close to its all-time high. Doesn't understand the sell-off.

wholesale distributors
BUY
Cardinal Health Inc

Though drug companies are a target of politicians citing high drug prices, it keeps printing cash. For now, it's a cheap stock that won't be hurt by higher interest rates.

wholesale distributors
BUY ON WEAKNESS
Cardinal Health Inc

Likes it after restructuring. Buy on this dip.

wholesale distributors
DON'T BUY
Cardinal Health Inc
Healthcare distribution. Unique structure. Low margins, so harder to offset inflation. Avoid in this environment. The industry is attractive, so he'd look to JNJ, CVS, or ABT.
wholesale distributors
BUY
Cardinal Health Inc
He would buy it here. His model price is over $53. This is the cheapest valuation it has been at in years and has a good dividend that is sustainable. He also favours investing in the US right now. Yield 4.25%
wholesale distributors
BUY ON WEAKNESS
Cardinal Health Inc

It has had a nice pullback here and he would buy more at $56.50. His model value is just above $66 right now.

wholesale distributors
PAST TOP PICK
Cardinal Health Inc

(A Top Pick Jan 17/17. 0% return.) There are really 3 players that dominate the entire space, and she switched to the leading player, Amerisourcebergen (ABC-N).

wholesale distributors
PAST TOP PICK
Cardinal Health Inc

(A Top Pick Jan 17/17. Down 18%.) A big Pharma distributor. There have a lot of things coming at them. It is so ingrained in the healthcare space in the US, and there are really 3 companies that control the whole thing. The issue has been around generics price deflation, and the cycle was much more severe than anything they had seen previously. There is also the Amazon factor. Had a spotty performance on the medical device side, and now they are going through a CEO transition. The company has about an 8% free cash flow yield. For that type of a business, when you start seeing easier comps, stabilization and deflation trends which really just started this quarter, the discount to the market is pretty significant, and she is expecting the whole group to trade higher.

wholesale distributors
TOP PICK
Cardinal Health Inc

The healthcare space has been really beaten up since the election started. They have exposure to drug inflation and the pricing side of things. They are really only one of three distributors of pharma in the US. They have 8-9% of free cash flow. (Analysts target: $81.88).

wholesale distributors
BUY ON WEAKNESS
Cardinal Health Inc

MCK-N vs. CAH-N. They have done very much the same thing, so she has no preference. MCK-N is certainly the leader in the group. The peak was last summer at $15. If MCK-N moves lower she would buy a lot more of it.

wholesale distributors
BUY
Cardinal Health Inc

MCK-N vs. CAH-N. He likes them. Those running for election are talking limits of drug prices. He likes all but Cardinal health is the best.

wholesale distributors
WEAK BUY
Cardinal Health Inc
Is number one in it's industry. Stable. Very profitable businesses.
wholesale distributors
DON'T BUY
Cardinal Health Inc
Return on equity has been very strong, but the businesses are changing. Prefers others in this sector.
wholesale distributors
Showing 1 to 15 of 24 entries

Cardinal Health Inc(CAH-N) Rating

Ranking : 4 out of 5

Bullish - Buy Signals / Votes : 4

Neutral - Hold Signals / Votes : 0

Bearish - Sell Signals / Votes : 0

Total Signals / Votes : 4

Stockchase rating for Cardinal Health Inc is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Cardinal Health Inc(CAH-N) Frequently Asked Questions

What is Cardinal Health Inc stock symbol?

Cardinal Health Inc is a American stock, trading under the symbol CAH-N on the New York Stock Exchange (CAH). It is usually referred to as NYSE:CAH or CAH-N

Is Cardinal Health Inc a buy or a sell?

In the last year, 4 stock analysts published opinions about CAH-N. 4 analysts recommended to BUY the stock. 0 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Cardinal Health Inc.

Is Cardinal Health Inc a good investment or a top pick?

Cardinal Health Inc was recommended as a Top Pick by on . Read the latest stock experts ratings for Cardinal Health Inc.

Why is Cardinal Health Inc stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is Cardinal Health Inc worth watching?

4 stock analysts on Stockchase covered Cardinal Health Inc In the last year. It is a trending stock that is worth watching.

What is Cardinal Health Inc stock price?

On 2024-03-28, Cardinal Health Inc (CAH-N) stock closed at a price of $111.9.