This Healthcare Company is Rated a 100% Buy

Your investment goals are unique to you, so it only makes sense that your investment strategy should be tailored to fit your specific needs.

Over the past 12 months, healthcare has beaten the S&P 500. And the industry is expected to grow given our aging population, and few companies are as well-positioned to take advantage of this growth. Healthcare can be a great choice if you want a sector to invest in.

Today, we'll focus on a healthcare company with an overall average of 100% buy rating based on Barchart’s opinion based on 13 technical indicators that analyze historical data. Barchart's opinion gives traders an idea of what popular trading systems report - whether to buy, hold, or sell. It takes up historical information from up to the last 5 years' worth of data and performs complex studies to develop its opinion. A 100% buy rating means all 13 technical indicators flash a buy signal.

Cardinal Health, Inc. (CAH)

Cardinal Health, Inc. (CAH) is an American company founded in 1971 by Robert D. Walter. Today, the company is headquartered in Dublin, Ohio, U.S., and has over 44,000 employees that offer medical and laboratory products and healthcare services. The company provides services in over 30 countries to over 60,000 pharmacies, 10,000 specialty physician offices and clinics, and about 90% of all American hospitals. 

Cardinal Health’s operations are divided into two segments:

The Pharmaceutical segment sells consumer goods, over-the-counter medications, specialty medicines, and branded and generic pharmaceutical drugs. In addition, this segment offers services to hospitals and clinics for pharmacy administration. It also provides pharmaceutical product repackaging services to pharmaceutical manufacturers and healthcare providers.

The Medical segment develops, acquires, and delivers a variety of medical, surgical, and laboratory items that are sold around the world.

Recent Reports

While the S&P 500 is down 16.54% over the past 12 months, CAH’s last trading price of $68.22 represents an increase of >40% - over the same period. 

And it’s thanks to some good reasons: 

• For the quarter ending June 30, 2022, CAH's revenue was $47.1 billion. This is an increase of 11% from that of the previous year. Additionally, its annual revenue for 2022 was $181.4 billion, an increase of 12% compared to the previous year.
• As of October 10, 2022, CAH has a market cap of $17.87 billion.

Additionally, on August 10, 2022, the company announced its quarterly dividend of $0.4957 per share, payable on October 15, 2022.  Couple that with a dividend payout ratio of just 38.63%, this company has lots of leftover cash for growth. Dividend growth investors will also appreciate that the company has increased its dividend every year since 1986 for 36 consecutive years. It is also listed in the S&P 500 index, making it a Dividend Aristocrat.

Analysts Rating

As of October 10, 2022, CAH’s most recent closing price was $68.22. Its 52-week high stock price is $72.28, which is 5.95% higher than its most recent closing price. Also, its 52-week low stock price is $45.85, 32.8% lower than its most recent closing price.

Analysts anticipate a rise in the stock price of CAH in the coming quarters. The consensus sees a high estimate of $78 and a low estimate of $56.

Technical Opinion

Barchart’s Opinion rating is a “100% Buy,” and both the medium and long-term indicators fully support a continuation of the trend. 

Three support levels are estimated at 67.54, 66.86, and 65.99, respectively; the three resistance points are estimated at 69.09, 69.96, and 70.6, respectively.

What’s More to Like About CAH

Healthcare ecosystems worldwide are continually changing to meet public health demands as surgical techniques become less intrusive and diagnostic testing becomes more accessible and accurate. Artificial intelligence (AI), machine learning (ML), and the internet of things (IoT) will continue to be integrated into medical devices.

Cardinal Health, Inc. is the leading manufacturer, developer, and seller of various innovative healthcare products and services. The company's digital ecosystem presently serves over 23 million patients to assist with medication adherence. This alone has increased the value and popularity of the company immensely.

Although CAH has gone through some difficult times recently, the worst seems to be behind it. And the company will undoubtedly make a comeback, given the current state of the medical device market, making it a potentially wise choice for future dividend growth investors.

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