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Cardinal Health, Inc. (NYSE:CAH) was among Jim Cramer’s latest stock calls, as he suggested investors balance portfolios with hot and cold stocks. Cramer said that a “vicious rotation out of healthcare” is the reason behind the stock being crushed.
Next, I’m a huge believer in Cardinal Health with a stock that’s just been annihilated here without any reason, other than, I think, a vicious rotation out of healthcare. Cardinal’s down from $233 to $204. It’s beaten the quarterly estimates repeatedly, shifts its model from being a pure middleman to being a drug wholesaler, to being a manager of services to its clients… Given the complexity of large independent medical organizations, Cardinal’s filling a gap in management for specialty chains that really don’t know how to run their own business. I think there’s maybe many more to come. High growth that now trades at less than 20 times earnings. To me, Cardinal’s a steal. Although we’ve been buying it for the Charitable Trust, and admittedly, I started early. Some would say wrong. Okay.
A woman reading and analyzing stock market data. Photo by Artem Podrez on Pexels
Cardinal Health, Inc. (NYSE:CAH) supplies branded, generic, and specialty medicines and provides pharmacy and specialty drug services. The company also makes and distributes medical and surgical products and procedure kits.
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