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Russell 2000 Futures
Cardinal Health, Inc. (CAH)
NYSE - NYSE Delayed Price. Currency in USD
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At close: 1:00PM EST
428 reactions on $CAH conversation
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4% dividend, listed as undervalued, in the growing health care market, and it is still at a 52 week low. Don't understand.
Today from CFRA: We increase our price target by $4 to $60, representing 9.5x our FY 23 (Jun.) EPS estimate, a discount to its average 10-year forward P/E of 13.2x. We maintain our FY 22 adjusted EPS estimate of $5.90 and increase FY 23 by $0.02 to $6.30. CAH posts Sep-Q EPS of $1.29 vs. $1.51 (-14.6%), six cents short of the $1.35 consensus. The miss was driven by higher-than-expected costs, as Sep-Q sales rose 12.5% to $44.0B ($2.1B ahead of consensus). Gross margin contracted 70 bps to 3.7% (40 bps below consensus). CAH maintained prior FY 22 adjusted EPS guidance of $5.60-$5.90. CAH announced long-term segment profit targets of low to mid-single digit growth in the Pharma segment and mid to high-single digit growth in Medical. The company said it is also targeting to average a double-digit combined adjusted EPS growth and dividend yield. We continue to view CAH as attractively valued at current levels and think it will likely benefit from steadily growing product volumes longer-term from aging baby boomers.
-- In August, we lifted our view on shares of CAH to
Buy from Hold as we think CAH is attractive at
current valuations. We see CAH set for better
growth in its core business in FY 22 and in the
long-run we think it will likely benefit from
steadily growing product volumes as baby
boomers drive higher health care utilization. We
view the divestiture of the Cordis business,
CAH’s global manufacturer of cardiology devices
for $1B as positive. The transaction is slated to
close in H1 FY 22. Since its 2015 acquisition,
Cordis was a significant drag for the Medical
segment, in our view, due to operational
problems, inventory write-downs, and mounting
---Consolidation of health insurers, providers, and
pharmacy benefit managers has been an
ongoing trend since 2018. This trend could
pressure CAH's operating margins, in our view,
as larger customers are able to negotiate lower
--- Our price target is $56, 8.9x our FY 23 EPS
estimate, lower than CAH’s historical forward P/
E average of 120x. Risks include a longer-thananticipated rebound in elective procedures due
to new rising Covid-19 infections, severe
generic price deflation and contract renewals on
less favorable terms
MNKD partners with $NRXP on advancing possible life-saving Covid drug.
•NRxP has partnered with MannKind Corporation (Nasdaq: $MNKD ) to develop a ZYESAMI inhaler for respiratory conditions.
• NRx announced that it has signed an agreement with Cardinal Health (NYSE:
$CAH ) to provide third-party logistics and distribution of ZYESAMI.
When there is another market crash or major correction this is the type of stock I'll be loading up on. I'm trying to calculate the downside to this.
The market is erratic and noisy. All that matters here is profits and that the company return them via div or buy-back when the fwd PE is low. If the profit estimates are accurate.....this company doesn't even need to grow to do fine.
Going to take me years of dividends to make back the capital losses of CAH. When I'm at break-even, I'm out.
What am I missing with this stock? Seems to be treading down incrementally daily.
In at 800 shares at $52 average
CAH has been in neutral mode but a down word motion with NO news . A lot of insider stuff is going on without our knowledge. When they share the news we will pop big . Hold on .
Anyone else afraid to buy any dips in fear that it will dip more?
I am not sure if one can totally trust yahoo finance statistics. U have noticed more than few mistakes. This company is showing d/e ratio close to 375 and bv of around 6. Is anyone concerned about these or what am I missing. I like the dividend and company’s cash position with $11+ per share.
Such a good value... Maybe the insiders know what we don't... Insider sold a huge chunk at 49... Probably a dead stock.....
To much corruption in this company. CEO, CFO… directors, chairman, management don’t knows how to run business. Abuse investors money. Supervisors of most divisions are poorly trained. Act like dummy robot. They created so much things to do , it not related to the job, spent tens of millions dollars to travel to enjoying vacation under business cost.
Hesitate to buy until $42
becoming a pattern. big sell off in the morning then slow crawl the rest of the day back near even.
Wisdom of Crowds
$CAH and $CVS will be huge winners.....profitable, low valuations, inflation hedges, aging populations, government spending in health care, Covid/vaccination tail winds. Good luck longs....
At this price it's almost a 4% dividend,.great entry price!
3.5% dividend, 30% payout ratio, forward PE of 9. Seems like an obvious buy, like CNC was on their ER.
I'm considering initiating a position in CAH sometime over the next couple days, assuming it stays in the lower $50 range. If I buy, this will go in the more conservative portion of my IRA portfolio with plans to hold long term, reinvesting dividends along the way. Opinions, positive and negative, appreciated. Thank you!
One of the absolute worst healthcare stocks over the past 12 months. CAH has never recovered from last years $20 price drop.
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