CAH - Cardinal Health: Continued Business Growth And Huge Medical Supplies Market Penetration
2024-02-20 04:25:42 ET
Summary
- Cardinal Health stock is being upgraded to a buy rating, from my prior hold rating last year, agreeing with the SA analyst consensus today.
- Bullish drivers include recent revenue/earnings growth, expected future EPS growth, a recent business acquisition, competitive edge, and market potential in medical supplies.
- Some negative factors include a mediocre dividend growth and yield, as well as continuing negative equity.
- The downside potential of inflationary costs and high interest rates is improving, thus improving the risk profile, however the risk of cyberattacks on its supply chain is worth considering.
A Global Leader in Medical Supplies and Radiopharmaceuticals
A personal story led me to writing today's article covering a healthcare stock, to pivot somewhat away from my usual financial sector stocks lately.
Recently, I was scheduled to undergo imaging at a local radiology department, which involved the use of contrast dye injection for better image resolution, so I did some further research into these procedures, and it turns out the market for items like contrast dyes, but also radiopharmaceuticals like Gallium used in more advanced PET scans , is very large, since it is an essential component of modern radiology imaging. That got me interested in some of the companies that are behind the scenes.
One company that produces radiopharmaceuticals, along with a diverse portfolio of other medical solutions, is Ohio-based Cardinal Health ( CAH ). ...
Cardinal Health: Continued Business Growth And Huge Medical Supplies Market Penetration