Cardinal Health Stock (NYSE:CAH), Trade Ideas

Cardinal Health

Cardinal Health is one of three leading pharmaceutical wholesalers in the US, engaged in sourcing and distributing of branded, generic, and specialty pharmaceutical products to pharmacies (retail chains, independent, and mail order), hospitals networks, and healthcare providers. Along with Cencora and McKesson, the three comprise well over 90% of the US pharmaceutical wholesale industry. Cardinal Health also supplies medical-surgical products and equipment to healthcare facilities in North America, Europe, and Asia.

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Amazon (NASDAQ: AMZN) is scheduled to report first-quarter 2024 results on Apr 30.


Is Amazon Stock Worth Buying Ahead of Q1 Earnings?

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SMCI

Super Micro Computer (NASDAQ: SMCI) is scheduled to report its third-quarter fiscal 2024 results on Apr 30.


Assessing Super Micro Computer Ahead of Q3 Earnings

Koninklijke Philips (NYSE: PHG) recently announced the receipt of FDA 510(k) approval for its Zenition 30 mobile C-arm. The approval is likely to make image-guided surgical procedures available to more patients at a lower cost in the United States.

Philips&#39; Zenition 30 to Boost Image-Guided Surgeries

Cardinal Health Inc

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<p><strong>Amazon </strong>(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/amzn#NASDAQ">AMZN</a>) is scheduled to report first-quarter 2024 results on Apr 30.<br />
The company has been rising on its dominant position in the online retail and cloud computing markets. It has been benefiting from the solid momentum across Prime and Amazon Web Services (&quot;AWS&quot;). In addition, expanding generative AI capabilities have been driving the stock.<br />
Strengthening Echo speaker, Fire TV, eero WiFi system and Blink smart security camera offerings are expanding Amazon&#39;s presence in the booming smart devices market, which has been a positive. In addition, expanding generative AI capabilities have been driving the stock.<br />
Let us delve into the fundamental strength of Amazon ahead of its first-quarter results.</p>
<div class="chart_embed">
<h3>Amazon.com, Inc. Price and EPS Surprise</h3>
<p><a href="https://www.zacks.com/stock/chart/AMZN/price-eps-surprise?icid=chart-AMZN-price-eps-surprise"><img alt="Amazon.com, Inc. Price and EPS Surprise" src="https://staticx-tuner.zacks.com/images/charts/f9/1714059471.png" style="height:300px; width:620px" title="" /> </a></p>
<p>Amazon.com, Inc. price-eps-surprise | Amazon.com, Inc. Quote</p>
</div>
<h3>Prime, Retail &amp; Streaming Momentum to Note</h3>
<p>Amazon&#39;s solid Prime momentum, along with its strengthening distribution network, are expected to have aided its online retail business&#39; performance in the quarter under review.<br />
Prime benefits, including a strong loyalty system, customer-friendly offers, quick grocery delivery services, and robust Prime Free One-Day and Prime Free Same-Day Delivery services, are expected to have aided Amazon&#39;s customer momentum in the first quarter.<br />
The Zacks Consensus Estimate for online store sales is pegged at $54.8 billion, implying growth of 7.2% from the year-ago reported figure.<br />
Apart from this, strengthening relationships with third-party sellers on the back of solid solution offerings are likely to have been a positive. The consensus mark for sales generated by third-party sellers is pegged at $34.5 billion, suggesting growth of 15.6% from the figure reported in the prior-year quarter.<br />
AMZN&#39;s growing efforts in grocery retail are expected to have benefited its quarterly performance.<br />
Solid momentum across the company&#39;s Fresh grocery stores across the United States is anticipated to have contributed well to AMZN&#39;s grocery sales in the first quarter. A solid network of Whole Foods Store and Amazon Go stores is likely to have driven the company&#39;s physical store sales.<br />
The consensus mark for the third quarter&#39;s physical store sales is pegged at $5.06 billion, indicating growth of 3.3% from the figure reported in the year-ago quarter.<br />
The strength in Prime Video is expected to have contributed well. Expanding original content, regional content and the overall content portfolio on Prime Video are expected to have driven the Prime subscription in the to-be-reported quarter.<br />
We expect retail perks associated with Prime, along with strength in Prime Video, to have continued aiding Amazon&#39;s subscription revenue growth in the quarter under review. The growing momentum in Amazon Music is anticipated to have been another positive.<br />
The Zacks Consensus Estimate for subscription service sales is pegged at $10.7 billion, reflecting growth of 10.6% from the year-ago reported figure.</p>
<h3>AWS Portfolio Momentum to Consider</h3>
<p>Amazon&#39;s robust AWS segment is expected to have driven its first-quarter performance.<br />
The strengthening cloud services portfolio on the back of generative AI technology and expanding data center networks is likely to have aided the performance of AWS in the to-be-reported quarter.<br />
The increasing number of AWS regions and availability zones is expected to have been a positive.<br />
All these factors are expected to have helped Amazon win customers in the first quarter.</p>
<h3>Guidance &amp; Estimates</h3>
<p>For first-quarter 2024, Amazon expects net sales between $138 billion and $143.5 billion. Net sales are expected to grow 8-13% from the year-ago quarter&#39;s reported figure. Management projects a favorable foreign exchange impact of 40 bps.<br />
The Zacks Consensus Estimate for net sales is pegged at $142.53 billion, indicating growth of 11.9% from the prior-year quarter&#39;s reported figure.<br />
The Zacks Consensus Estimate for first-quarter earnings is pegged at 82 cents per share, suggesting a significant rise from the 31 cents reported in the year-ago quarter.</p>
<h3>What Our Model Says</h3>
<p>Our proven model predicts an earnings beat for Amazon this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here, as you see below.<br />
Amazon has an Earnings ESP of +6.19%. You can uncover the best stocks to buy or sell before they&#39;re reported with our Earnings ESP Filter.<br />
AMZN has a Zacks Rank #2 at present.</p>
<h3>Other Stocks to Consider</h3>
<p>Here are some stocks worth considering, as our model shows that these also have the right combination of elements to beat on earnings this time around.<br />
<strong>APi Group</strong> (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/apg#NYSE">APG</a>) has an Earnings ESP of +2.06% and sports a Zacks Rank #1 at present.<br />
The company is scheduled to release first-quarter 2024 results on May 2. The Zacks Consensus Estimate for APG&#39;s earnings is pegged at 32 cents per share, indicating growth of 28% from the year-ago quarter&#39;s reported figure.<br />
<strong>Booking Holdings</strong> (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/bkng#NASDAQ">BKNG</a>) currently has an Earnings ESP of +1.75% and a Zacks Rank #3.<br />
The company is set to announce first-quarter 2024 results on May 2. The Zacks Consensus Estimate for BKNG&#39;s earnings is pinned at $14.02 per share, indicating a jump of 20.9% from the year-ago actual.<br />
<strong>Cardinal Health</strong> (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/cah#NYSE">CAH</a>) has an Earnings ESP of +1.11% and a Zacks Rank #3 at present.<br />
The company is scheduled to release third-quarter fiscal 2024 results on May 2. The Zacks Consensus Estimate for CAH&#39;s earnings is pegged at $1.95 per share, indicating growth of 12.1% from the year-ago quarter&#39;s reported figure.</p>
<p><a href="https://www.zacks.com/stock/news/2262634/is-amazon-amzn-stock-worth-buying-ahead-of-q1-earnings?cid=CS-BENZ-FT-analyst_blog|most_popular_stocks-2262634">To read this article on Zacks.com click here.</a></p>


<p><strong>Super Micro Computer</strong> (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/smci#NASDAQ">SMCI</a>) is scheduled to report its third-quarter fiscal 2024 results on Apr 30.<br />
The company has been benefiting from its diverse business model, which encompasses Graphics Processing Units (GPU), AI, core computing, storage, 5G telco, edge and Internet of Things solutions. Its expanding pipeline of AI-backed software solutions continues to strengthen its foothold in the booming AI market in the to-be-reported quarter.<br />
Strength in the Server &amp; Storage Systems segment, owing to continuous AI integrations into its storage systems, is expected to have been the key growth driver of the company during the quarter under review.<br />
Strong momentum across its H100-based systems and AI inferencing systems are likely to have boosted the performance of the Subsystems &amp; Accessories segment in the third quarter.<br />
The Zacks Consensus Estimate for third-quarter fiscal 2024 Subsystems and accessories revenues is pegged at $277.71 million, indicating a significant jump from the year-ago quarter&#39;s reported figure of $119.60 million.<br />
The company&#39;s solid traction across top-tier data centers, emerging cloud service providers, enterprise/channel, and edge/IoT/telco customers, owing to its robust next-generation AI and CPU platforms, is expected to have boosted its performance in the to-be-reported quarter.<br />
Strengthening demand and improving supply conditions for GPU and rack-scale total IT solutions are likely to have continued aiding its top-line growth in the quarter under review.<br />
However, macroeconomic uncertainties and a growing competitive scenario are likely to have been major headwinds for the company.</p>
<div class="chart_embed">
<h3>Super Micro Computer, Inc. Price and EPS Surprise</h3>
<p><a href="https://www.zacks.com/stock/chart/SMCI/price-eps-surprise?icid=chart-SMCI-price-eps-surprise"><img alt="Super Micro Computer, Inc. Price and EPS Surprise" src="https://staticx-tuner.zacks.com/images/charts/7b/1714058224.png" style="height:299px; width:620px" title="" /> </a></p>
<p>Super Micro Computer, Inc. price-eps-surprise | Super Micro Computer, Inc. Quote</p>
</div>
<h3>Estimates Trend</h3>
<p>For the third quarter of fiscal 2024, SMCI expects revenues between $3.7 billion and $4.1 billion. The Zacks Consensus Estimate for sales is pegged at $4.11 billion, indicating a significant jump from the year-ago fiscal quarter&#39;s reported value of $1.28 billion.<br />
SMCI anticipates non-GAAP earnings between $5.20 and $6.01 per share. The consensus mark for earnings is pegged at $5.97 per share, indicating growth from the year-ago quarter&#39;s reported figure of $1.63 per share.</p>
<h3>What Our Model Says</h3>
<p>Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That&#39;s exactly the case here.<br />
Super Micro Computer has an Earnings ESP of +16.35% and a Zacks Rank #3.</p>
<h3>Stocks to Consider</h3>
<p>Here are some stocks worth considering, as our model shows that they have the right combination of elements to beat on earnings this season.<br />
<strong>APi Group</strong> (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/apg#NYSE">APG</a>) has an Earnings ESP of +2.06% and a Zacks Rank #1 at present.<br />
APi Group is scheduled to release first-quarter 2024 results on May 2. The Zacks Consensus Estimate for APG&#39;s earnings is pegged at 32 cents per share, indicating growth of 28% from the year-ago quarter&#39;s reported figure.<br />
<strong>Amazon</strong> (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/amzn#NASDAQ">AMZN</a>) has an Earnings ESP of +11.66% and a Zacks Rank #2 at present.<br />
Amazon is set to announce first-quarter 2024 results on Apr 30. The Zacks Consensus Estimate for AMZN&#39;s earnings is pinned at 82 cents per share, indicating a jump from the year-ago quarter&#39;s reported figure of 31 cents per share.<br />
<strong>Cardinal Health</strong> (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/cah#NYSE">CAH</a>) has an Earnings ESP of +1.11% and a Zacks Rank #3 at present.<br />
CAH is scheduled to release third-quarter fiscal 2024 results on May 2. The Zacks Consensus Estimate for CAH&#39;s earnings is pegged at $1.95 per share, indicating growth of 12.1% from the year-ago quarter&#39;s reported figure.<br />
<a href="https://www.zacks.com/stock/news/2262644/assessing-super-micro-computer-smci-ahead-of-q3-earnings?cid=CS-BENZ-FT-analyst_blog|most_popular_stocks-2262644">To read this article on Zacks.com click here.</a></p>


FDA Says Cardinal Health Failure To Ensure Syringes In Convenience Kits, U.S. Importing & Distributing Have 510(k) Clearance Prevented FDA From Checking Risks

On April 24 Cardinal Health Got Warning Letter From FDA

<p><strong>Koninklijke Philips </strong>(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/phg#NYSE">PHG</a>) recently announced the receipt of FDA 510(k) approval for its Zenition 30 mobile C-arm. The approval is likely to make image-guided surgical procedures available to more patients at a lower cost in the United States.</p>
<p>The new Zenition 30 delivers a special mix of personalized control and image clarity to improve the speed and accuracy of decision-making for a variety of clinical procedures at an affordable cost. It is based on the company&#39;s Zenition platform&#39;s demonstrated simplicity of use and workflow efficiency.</p>
<h3>Price Performance</h3>
<p>Over the past six months, PHG&#39;s shares have gained 9.6% compared with the industry&#39;s rise of 14.7%. The S&amp;P 500 increased 17.8% in the same time frame.</p>
<p><img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/9d/65527.jpg?v=103094215" /><br />
Image Source: Zacks Investment Research</p>
<h3>More on Zenition 30</h3>
<p>Zenition 30 reduces surgeons&#39; reliance on support staff by providing them with more customization, control, and flexibility over C-arm movement and user settings. This helps address staff shortages that restrict patient access and increase waiting periods. The Zenition 30 also solves the financial issues that affect present hospital systems by lowering the number of support personnel needed during procedures.</p>
<p>Surgeons can treat more patients while also spending more time focusing on each patient because of the intuitive C-arm control provided by the patient table. This results in an improved experience for both people and patients.</p>
<p>With its cutting-edge imaging algorithms, customized user profiles, and flat detector technology from Philips, the Zenition 30 offers excellent dosage efficiency and image quality. Additionally, it has automatic workflow customization that adapts to each surgeon&#39;s preferred configuration and style of operation as soon as they log in. Less manual correction means more first-time-right images and more seamless processes.</p>
<p>The Zenition 30 not only provides quick setup and protocol selection, but it also gives surgeons much more control over where the C-arm is positioned during surgery. This is because the flat detector&#39;s easily accessible pushbuttons enable surgeons to unlock and modify the arm&#39;s rotational, orbital, and horizontal positioning from inside the sterile field.</p>
<h3>Industry Prospects</h3>
<p>Per a report by Precedence Research, the global image guided surgery devices market size was valued at $6.8 billion in 2022 and is expected to reach more than $17.2 billion by 2032 at a growth rate of 9.8%.</p>
<p>The need for less intrusive operations, the aging population, and advancements in imaging technology are the main factors driving the industry. The market is expanding because of increased efforts being made to treat cancer and the growing prevalence of chronic diseases like cancer.</p>
<p>Given the market potential, Philips&#39; Zenition 30 mobile C-arm is likely to boost the company&#39;s business and generate additional revenues.</p>
<h3>Notable Developments</h3>
<p>Philips partnered with smartQare to integrate the latter&#39;s viQtor solution into its clinical patient monitoring platforms. This partnership aims to improve continuous patient monitoring in and out of hospitals by enabling open communication between sensors and systems, making data and decision support accessible via user-friendly platforms.</p>
<p>Philips and SyntheticMR recently announced the launch of Smart Quant Neuro 3D, which is likely to be a significant development in the objective decision support field for the diagnosis and treatment evaluation of brain illnesses such as dementia, traumatic brain injury, and multiple sclerosis.</p>
<p>In March, Philips announced an extended partnership with Amazon Web Services (AWS) in response to the expanding demand for cloud-based, secure, scalable digital pathology solutions.</p>
<p>The company also announced the launch of its new Azurion neuro biplane system, which is likely to be a major improvement in its Image Guided Therapy System.</p>
<div class="chart_embed">
<h3>Koninklijke Philips N.V. Price</h3>
<p><a href="https://www.zacks.com/stock/chart/PHG/fundamental/price?icid=chart-PHG-fundamental/price"><img alt="Koninklijke Philips N.V. Price" src="https://staticx-tuner.zacks.com/images/charts/75/1713871805.png" style="height:252px; width:536px" title="" /> </a></p>
<p>Koninklijke Philips N.V. price | Koninklijke Philips N.V. Quote</p>
</div>
<h3>Zacks Rank &amp; Stocks to Consider</h3>
<p>PHG carries a Zacks Rank #4 (Sell) at present.</p>
<p>Some better-ranked stocks in the broader medical space are&nbsp;<strong>DaVita Inc.&nbsp;</strong>(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dva#NYSE">DVA</a>),&nbsp;<strong>Cardinal Health, Inc.&nbsp;</strong>(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/cah#NYSE">CAH</a>) and&nbsp;<strong>Cencora, Inc.</strong>&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/cor#NYSE">COR</a>).</p>
<p>DaVita, sporting a Zacks Rank #1 (Strong Buy), has an estimated long-term growth rate of 12.1%. DVA&#39;s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 35.6%.</p>
<p>DaVita&#39;s shares have gained 58.3% compared with the&nbsp;industry&#39;s 18.9% rise in the past year.</p>
<p>Cardinal Health, flaunting a Zacks Rank of 1 at present, has an estimated long-term growth rate of 14.2%. CAH&#39;s earnings surpassed estimates in each of the trailing four quarters, with the average being 15.6%.</p>
<p>Cardinal Health has gained 51.9% compared with the&nbsp;industry&#39;s 3.2% rise in the past year.</p>
<p>Cencora, carrying a Zacks Rank of 2 (Buy) at present, has an estimated long-term growth rate of 9.8%. COR&#39;s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 6.7%.</p>
<p>Cencora&#39;s shares have rallied 51.5% compared with the&nbsp;industry&#39;s 3.6% rise in the past year.</p>
<p><a href="https://www.zacks.com/stock/news/2260350/philips-phg-zenition-30-to-boost-image-guided-surgeries?cid=CS-BENZ-FT-analyst_blog|company_news_-_medical_sector-2260350">To read this article on Zacks.com click here.</a></p>


Philips' Zenition 30 to Boost Image-Guided Surgeries

<p>Cardinal Health (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CAH#NYSE">CAH</a>) has outperformed the market over the past 5 years by 5.31% on an annualized basis producing an average annual return of 16.67%. Currently, Cardinal Health has a market capitalization of $24.95 billion. </p>
<p><strong>Buying $100 In CAH:</strong> If an investor had bought $100 of CAH stock 5 years ago, it would be worth <strong>$215.89</strong> today based on a price of $102.57 for CAH at the time of writing.</p>
<h3>Cardinal Health's Performance Over Last 5 Years</h3>
<p><img src="https://www.benzinga.com/files/images/story/2024/1713882681_0.png" alt="comp_fig" /></p>
<p>Finally -- what's the point of all this? The key insight to take from this article is to note how much of a difference compounded returns can make in your cash growth over a period of time.</p>
<p><em>This article was generated by Benzinga's automated content engine and reviewed by an editor.</em></p>


$100 Invested In Cardinal Health 5 Years Ago Would Be Worth This Much Today

<p>U.S. stocks are poised to break a six-day losing streak, marking the end of the longest downward <a href="https://www.benzinga.com/markets/cryptocurrency/24/04/38342242/powell-middle-east-fears-weigh-on-tech-stocks-treasury-yields-hit-5-gold-notches-fifth-wee">trend since September 2022.</a></p>
<p>At noon trading in New York on Monday, major indices all traded higher, indicating modest gains, as investors prepare for a week jam-packed with pivotal earnings reports from major corporations, including <strong>Visa Inc.</strong> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/V#NYSE">V</a>), <strong>Tesla Inc.</strong> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>), <strong>Meta Platforms</strong> <strong>Inc.</strong> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>), <strong>Microsoft Corp.</strong> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NYSE">MSFT</a>), and <strong>Alphabet Inc</strong>. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>)(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>).</p>
<p>Easing geopolitical tensions in the Middle East bolstered market sentiment but exerted downward pressure on key global commodities. </p>
<p>Gold plunged 2.5% to $2,330 per ounce, marking its most significant single-day decline since June 2022, while silver tumbled 5%, poised for its worst daily performance since last October. </p>
<p>Oil prices were broadly steady, erasing early session losses, with the West Texas Intermediate (WTI) light crude trading at $82 a barrel.</p>
<p>Treasury yields saw no movements, amid lack of rate-sensitive data. </p>
<p>Positive risk sentiment aided <strong>Bitcoin</strong> (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>), with the largest cryptocurrency rising above $66,000, on track for its highest close in more than a week. </p>
<h1 class="wp-block-heading"><strong>Monday&#8217;s Performance In Major U.S. Indices, ETFs</strong></h1>
<p><figure class="wp-block-table is-style-stripes"><br />
<table>
<tbody>
<tr>
<td><strong>Major Indices</strong></td>
<td><strong>Price</strong></td>
<td><strong>1-day %chg</strong></td>
</tr>
<tr>
<td>Russell 2000</td>
<td>1,975.07</td>
<td>1.2%</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>5,013.74</td>
<td>0.9%</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>17,199.55</td>
<td>0.9%</td>
</tr>
<tr>
<td>Dow Jones</td>
<td>38,300.54</td>
<td>0.8%</td>
</tr>
</tbody>
</table>
<p><figcaption class="wp-element-caption"><em>Updated at 1:30 p.m. EDT</em></figcaption></p></figure></p>
<p>The&nbsp;<strong>SPDR S&amp;P 500 ETF Trust</strong>&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) rose 1% to $500.03, the&nbsp;<strong>SPDR Dow Jones Industrial Average</strong> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>) rose 0.8%% to $383.02 and the tech-heavy&nbsp;<strong>Invesco QQQ Trust</strong>&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) rallied 1% to $417.03, according to&nbsp;<a href="https://pro.benzinga.com/dashboard">Benzinga Pro data</a>.&nbsp;</p>
<p>Small caps, as tracked by the <strong>iShares Russell 2000 ETF</strong> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>), soared 1.2%. </p>
<p>Sector-wise, the<strong> Financials Select Sector SPDR Fund</strong> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLF#NYSE">XLF</a>) outperformed, up 1.4%, followed by the <strong>Industrials</strong> <strong>Select Sector SPDR Fund</strong> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLI#NYSE">XLI</a>), up 1%. The <strong>Materials</strong> <strong>Select Sector SPDR Fund</strong> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLB#NYSE">XLB</a>) was the major laggard, up 0.2%. </p>
<h1 class="wp-block-heading"><strong>Monday&#8217;s Stock Movers</strong></h1>
<ul>
<li><strong>Ford Motor Co.</strong> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/F#NYSE">F</a>) rose over 5%, emerging as the top performer within the S&amp;P 500, potentially driven by heightened anticipation surrounding the automaker&#8217;s forthcoming quarterly results scheduled for unveiling this Wednesday.</li>
<li><strong>Wolfspeed Inc. </strong>(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WOLF#NYSE">WOLF</a>) surged nearly 10% following reports that activist investor <strong>Jana Partners </strong>is pushing the world&#8217;s largest silicon carbide manufacturer to explore various avenues to enhance shareholder value, including the possibility of a sale. </li>
<li><strong>Informatica Inc.</strong> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/INFA#NYSE">INFA</a>) saw a decrease of over 8% as the company confirmed it is not presently involved in any acquisition discussions. </li>
<li><strong>Coinbase Global Inc.</strong> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/COIN#NASDAQ">COIN</a>) rose over 5% amid the broader cryptocurrency market rebound. </li>
<li><strong>Cardinal Health</strong> <strong>Inc.</strong> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CAH#NYSE">CAH</a>) experienced a 5% decline following the company&#8217;s announcement that its pharmaceutical distribution contracts with <strong>UnitedHealth Group Inc.</strong>&#8216;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UNH#NYSE">UNH</a>) OptumRx unit will not be renewed after expiring at the end of June.</li>
<li><strong>Newmont Corporation</strong> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NEM#NYSE">NEM</a>) tumbled over 3%, as gold prices fell. </li>
</ul>
<p><em>Read Now:</em> <em><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/04/38356886/s-p-500-trades-at-two-month-low-where-is-the-next-support">S&amp;P 500 Trades At Two-Month Low: Where Is The Next Support?</a></em></p>
<p><em>Photo: Shutterstock</em></p>


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Evercore Says McKesson Wins OptumRX Contract Starting July

<p>Monday,&nbsp;<strong>Cardinal Health, Inc.&nbsp;</strong>(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CAH#NYSE">CAH</a>) announced that its pharmaceutical distribution contracts with&nbsp;<strong>OptumRx</strong>, which expire at the end of June 2024,&nbsp;<a target="_blank" href="https://www.benzinga.com/pressreleases/24/04/n38353182/cardinal-health-reaffirms-fiscal-2024-non-gaap-eps-guidance-and-long-term-targets-amidst-nonrenewa" rel="noreferrer noopener">will not be renewed</a>.&nbsp;</p>
<p>OptumRx is a subsidiary of&nbsp;<strong>UnitedHealth Group Inc</strong>&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UNH#NYSE">UNH</a>).</p>
<p>Cardinal Health reaffirmed its fiscal 2024 adjusted EPS guidance of $7.20-$7.35 versus the consensus of $7.29. </p>
<p>With a market cap of almost $26 billion, Cardinal Health is a distributor of pharmaceuticals, a global manufacturer and distributor of medical and laboratory products, and a provider of performance and data solutions for healthcare facilities.</p>
<p>Despite the nonrenewal of the OptumRx contracts, Cardinal Health reiterated its Pharmaceutical and Specialty Solutions long-term segment profit CAGR target of 4%-6% and its consolidated non-GAAP EPS CAGR target of 12%-14% for fiscal years 2024 to 2026, relative to a fiscal 2023 baseline.&nbsp;</p>
<p>While Cardinal Health has not yet provided financial guidance for fiscal 2025, the company expects growth in fiscal 2025 in Pharmaceutical and Specialty Solutions segment profit and adjusted EPS.&nbsp;</p>
<p>The company expects to partially offset the impact of OptumRx through a combination of new customer wins, specialty growth, and other actions.</p>
<p>Sales to OptumRx generated 16% of Cardinal Health&#8217;s consolidated revenue of $205 billion&nbsp;<a target="_blank" href="https://www.benzinga.com/news/earnings/23/08/33857519/cardinal-health-q4-earnings-surpass-estimates-raises-2024-forecast" rel="noreferrer noopener">in fiscal year 2023</a>.&nbsp;</p>
<p>Approximately 90% of these sales were serviced by the company&#8217;s Pharmaceutical Distribution business and primarily consisted of non-specialty bulk shipments to Optum&#8217;s mail dispensing facilities.</p>
<p>Total sales to OptumRx generate a meaningfully lower operating margin than the overall Pharmaceutical and Specialty Solutions segment.</p>
<p>Furthermore, Cardinal Health expects to generate an adjusted free cash flow of approximately $2 billion on average from fiscal 2024 to 2026.</p>
<p>The company anticipates lower-than-average adjusted free cash flow in fiscal 2025 due to the unwinding of negative net working capital associated with the OptumRx contract and day-of-the-week timing.</p>
<p>&#8220;We have plans in place to continue delivering profitable growth in fiscal 2025, and we are pleased to reaffirm our long-term targets for the Pharmaceutical and Specialty Solutions segment and enterprise, despite this nonrenewal,&#8221; said Jason Hollar, CEO of Cardinal Health.&nbsp;</p>
<p>&#8220;We are excited about the many other opportunities in the marketplace, such as the onboarding of new customers and the additional capabilities from the integration of Specialty Networks in fiscal 2025,&#8221; said Debbie Weitzman, CEO of Pharmaceutical and Specialty Solutions.&nbsp;</p>
<p><strong><em>Read Next:</em></strong><em>&nbsp;</em><a target="_blank" href="https://www.benzinga.com/news/large-cap/24/02/37134638/us-federal-trade-commission-investigates-drug-shortages-amid-allegations-of-market-manipulation" rel="noreferrer noopener"><em>US Federal Trade Commission Investigates Drug Shortages Amid Allegations Of Market Manipulation</em></a><em>.</em></p>
<p><strong>Price Action:</strong> CAH shares are down 4.32% at $103.52 during the premarket session at the last check Monday.</p>
<p><em>Image: Michal Jarmoluk from Pixabay</em></p>


Equities

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Health Care

Movers

Drug Distributing Giant Cardinal Health Will Not Renew OptumRx Distribution Pact, Stock Plunges

WIIM

Cardinal Health shares are trading lower. The company announced its pharmaceutical distribution contracts with OptumRx will not be renewed and reaffirmed its 2024 EPS guidance.

Cardinal Health Says Despite Nonrenewal Of OptumRx Contracts, It Reiterates Its Pharmaceutical And Specialty Solutions Long-term Segment Profit CAGR Target Of 4%-6% And Its Consolidated Adjusted EPS CAGR Target Of 12%-14% For FY2024-FY2026

Cardinal Health Reaffirms Its Fiscal 2024 Adjusted EPS Guidance Of $7.20-$7.35 Vs. consensus Of $7.29

<p>OptumRx is UnitedHealth&#39;s subsidiary&nbsp;</p>


Cardinal Health Announced That Its Pharmaceutical Distribution Contracts With OptumRx, Which Expire At The End Of June 2024, Will Not Be Renewed

<p><strong>Boston Scientific Corporation </strong>(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/bsx#NYSE">BSX</a>) has been struggling due to unfavorable currency movement and macroeconomic woes. Strong competitors in the large medical device market also pose a tough challenge for Boston Scientific. The stock carries a Zacks Rank #4 (Sell) currently.</p>
<p>The industry-wide trend of challenging macroeconomic conditions in the form of inflation, disruptions in economic activity, global supply chains and labor markets, volatile financial market dynamics and significant volatility in price and availability of goods and services are putting pressure on Boston Scientific&#39;s profitability. Further, international conflicts, including the Russia-Ukraine war and tensions between China and Taiwan, have increased cybersecurity risks on a global basis. With sustained macroeconomic pressure, the company may struggle to keep its operating expenses in check.<br />
In the fourth quarter of 2023, the company reported a 13.4% rise in the cost of products sold and an 18.6% rise in selling, general and administrative expenses. Adjusted operating margin contracted 22 basis points (bps) to 22.1% in the reported quarter.</p>
<p>With Boston Scientific recording 40% of its sales from the international market, it remains highly exposed to currency fluctuations. Unfavorable currency movements have been a major dampener over the last few quarters, as in the case of other important MedTech players, too.<br />
In 2023, the company faced an approximate 80 bps headwind from foreign exchange on revenues.</p>
<p>Further, the presence of a large number of players has made the medical devices market highly competitive. The company operates in several markets, including cardiovascular, CRM, endosurgery and neuromodulation, where it faces competition from large, well-capitalized companies such as Johnson &amp; Johnson, Abbott, Medtronic, Stryker, Smith &amp; Nephew and Edwards Lifesciences, apart from several other smaller companies.</p>
<div class="chart_embed">
<h3>Boston Scientific Corporation Price</h3>
<p><a href="https://www.zacks.com/stock/chart/BSX/fundamental/price?icid=chart-BSX-fundamental/price"><img alt="Boston Scientific Corporation Price" src="https://staticx-tuner.zacks.com/images/charts/2c/1712746810.png" style="height:251px; width:538px" title="" /> </a></p>
<p>Boston Scientific Corporation price | Boston Scientific Corporation Quote</p>
</div>
<p>On a positive note, Boston Scientific has been continuing with its expansion of operations across different geographies outside the United States. Within its international regions, the company is putting additional efforts to expand its foothold in emerging markets (which are defined as all countries except the United States, Western and Central Europe, Japan, Australia, New Zealand and Canada). These hold strong growth potential based on their economic conditions, healthcare sectors and global capabilities.</p>
<p>We are also impressed with Boston Scientific&#39;s recent acquisitions that have added numerous products (though many are under development) with immense potential. This, in turn, should help boost the top line in the long term.<br />
In December 2023, Boston Scientific announced its plans to acquire Axonics, a medical technology company that offers innovative devices to treat urinary and bowel dysfunction. With this $3.7-billion acquisition, the company expects to expand its differentiated technologies portfolio within Urology.</p>
<p><strong>Key Picks</strong></p>
<p>Some better-ranked stocks from the broader medical space are&nbsp;<strong>Stryker Corporation</strong>&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/syk#NYSE">SYK</a>), <strong>Cencora, Inc.</strong>&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/cor#NYSE">COR</a>) and&nbsp;<strong>Cardinal Health</strong>&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/cah#NYSE">CAH</a>).</p>
<p>Stryker, carrying a Zacks Rank #2 (Buy), reported fourth-quarter 2023 adjusted EPS of $3.46, beating the Zacks Consensus Estimate by 5.8%. Revenues of $5.8 billion outpaced the consensus estimate by 3.8%.</p>
<p>Stryker has an estimated earnings growth rate of 11.5% for 2025 compared with the S&amp;P 500&#39;s 9.9%. The company&#39;s earnings surpassed estimates in each of the trailing four quarters, the average being 5.1%.</p>
<p>Cencora, carrying a Zacks Rank #2, reported first-quarter fiscal 2024 adjusted EPS of $3.28, which beat the Zacks Consensus Estimate by 14.7%. Revenues of $72.3 billion outpaced the Zacks Consensus Estimate by 5.1%.</p>
<p>COR has an earnings yield of 5.75% compared with the industry&#39;s 1.85%. The company&#39;s earnings surpassed estimates in each of the trailing four quarters, the average being 6.7%.</p>
<p>Cardinal Health, carrying a Zacks Rank #2, reported second-quarter fiscal 2024 adjusted earnings of $1.82, which beat the Zacks Consensus Estimate by 16.7%. Revenues of $57.45 billion improved 11.6% on a year-over-year basis and also topped the Zacks Consensus Estimate by 1.1%.</p>
<p>CAH has a long-term estimated earnings growth rate of 15.3% compared with the industry&#39;s 11.8% growth. The company&#39;s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 15.6%.</p>
<p><a href="https://www.zacks.com/stock/news/2253274/boston-scientific-bsx-faces-rising-costs-competition?cid=CS-BENZ-FT-analyst_blog|zer_report_update-2253274">To read this article on Zacks.com click here.</a></p>


Boston Scientific (BSX) Faces Rising Costs, Competition

<p><strong>Philips</strong> (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/phg#NYSE">PHG</a>) is leaving no stone unturned to bolster its patient monitoring solutions portfolio on the back of recent collaborations.<br />
In this regard, the company partnered with smartQare to integrate the latter&#39;s viQtor solution into its clinical patient monitoring platforms.<br />
This partnership aims to improve continuous patient monitoring in and out of hospitals by enabling open communication between sensors and systems, making data and decision support accessible via user-friendly platforms.<br />
Moreover, as a part of the deal, smartQare will acquire Philips&#39; Healthdot business to combine its viQtor patient monitoring solution with the latter&#39;s wearable biosensors, offering integrated remote monitoring to healthcare providers and patients.<br />
Philips is expected to gain solid traction across hospitals and other healthcare organizations on the back of its latest move.</p>
<div class="chart_embed">
<h3>Koninklijke Philips N.V. Price and Consensus</h3>
<p><a href="https://www.zacks.com/stock/chart/PHG/price-consensus-chart?icid=chart-PHG-price-consensus-chart"><img alt="Koninklijke Philips N.V. Price and Consensus" src="https://staticx-tuner.zacks.com/images/charts/a8/1712581770.png" style="height:285px; width:620px" title="" /> </a></p>
<p>Koninklijke Philips N.V. price-consensus-chart | Koninklijke Philips N.V. Quote</p>
</div>
<h3>Strengthening Patient Monitoring Solutions</h3>
<p>Apart from the smartQare partnership, the company recently introduced Philips Capsule Surveillance to strengthen its patient monitoring solutions portfolio.<br />
This system offers a comprehensive view of patient status, enabling tailored alerts and decision-making, overcoming cognitive overload challenges in complex hospital environments.<br />
Further, Philips unveiled Visual Patient Avatar, a new monitoring solution to help clinicians in the operating room with complex patient data and time constraints.<br />
This new solution is designed to improve situational awareness in operating rooms by visualizing vital information about the patients through animations, colors and shapes. The user-friendly avatar display enhances the recall and processing of critical data, potentially saving lives and providing clinical teams with peace of mind.<br />
Additionally, Philips received 510(k) clearance for its IntelliVue patient monitor software, including the award-winning Philips Sounds alarm package, making it available in the United States and over 200 countries worldwide. This will enable the company to create a more peaceful, healing environment for both patients and caregivers.</p>
<h3>Wrapping Up</h3>
<p>All the above-mentioned endeavors will enable Philips to capitalize on growth opportunities present in the global patient monitoring solutions market. A Vynz Research report predicts the global patient monitoring solutions market to reach $38.95 billion, implying a CAGR of 7.8% during the forecast period of 2023-2030.<br />
Moreover, the strengthening patient monitoring solutions portfolio is expected to benefit the Connected Care segment, which, in turn, will likely aid the overall financial performance of the company in the upcoming period.<br />
Philips expects 2024 comparable sales growth in the band of 3-5%.<br />
The Zacks Consensus Estimate for 2024 sales is pegged at $20.12 billion, indicating growth of 2.4% from the year-ago quarter.</p>
<h3>Zacks Rank &amp; Stock to Consider</h3>
<p>Currently, Philips carries a Zacks Rank #3 (Hold).<br />
Its shares have lost 13.9% in the year-to-date period, underperforming the Zacks Medical sector&#39;s growth of 4.2%.<br />
Some better-ranked stocks in the broader medical market sector are <strong>DaVita</strong> (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dva#NYSE">DVA</a>), <strong>Cardinal Health</strong> (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/cah#NYSE">CAH</a>), and <strong>AdaptHealth</strong> (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/ahco#NASDAQ">AHCO</a>). While DaVita sports a Zacks Rank #1 (Strong Buy) at present, Cardinal Health and AdaptHealth carry a Zacks Rank #2 (Buy) each.<br />
DaVita shares have surged 27.5% in the year-to-date period. DVA&#39;s long-term earnings growth rate is currently projected at 12.15%.<br />
Cardinal Health shares have gained 9% in the year-to-date period. CAH&#39;s long-term earnings growth rate is currently projected at 14.25%.<br />
AdaptHealth shares have gained 43.6% in the year-to-date period. The long-term earnings growth rate for AHCO is currently projected at 14.90%.</p>
<p><a href="https://www.zacks.com/stock/news/2252014/philips-phg-boosts-patient-monitoring-with-smartqare-deal?cid=CS-BENZ-FT-analyst_blog|company_news_-_medical_sector-2252014">To read this article on Zacks.com click here.</a></p>


AHCO

Philips (PHG) Boosts Patient Monitoring With SmartQare Deal

<p><strong>Cardinal Health's</strong> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CAH#NYSE">CAH</a>) short percent of float has fallen 19.32% since its last report. The company recently reported that it has <strong>8.61 million shares sold short</strong>, which is 4.72% of all regular shares that are available for trading. Based on its trading volume, <strong>it would take traders 3.06 days to cover their short positions on average.</strong></p>
<h3>Why Short Interest Matters</h3>
<p>Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock/">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.</p>
<p>Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.</p>
<p><strong>See Also:</strong> <a href="https://www.benzinga.com/short-interest"><strong>List of the most shorted stocks</strong></a></p>
<h3>Cardinal Health Short Interest Graph (3 Months)</h3>
<p><img src="https://www.benzinga.com/files/images/story/2024/1712609110_0.png" alt="short_fig" /></p>
<p>As you can see from the chart above the percentage of shares that are sold short for Cardinal Health has declined since its last report. This does not mean that the stock is going to rise in the near-term but traders should be aware that less shares are being shorted.</p>
<h3>Comparing Cardinal Health's Short Interest Against Its Peers</h3>
<p>Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.</p>
<p>According to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, Cardinal Health's peer group average for short interest as a percentage of float is 3.84%, which means the company has <strong>more</strong> short interest than most of its peers.</p>
<p>Did you know that increasing short interest can actually be <strong>bullish</strong> for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze/"><strong>This post by Benzinga Money explains how you can profit from it.</strong></a></p>
<p><em>This article was generated by Benzinga's automated content engine and was reviewed by an editor.</em></p>


Short Sellers

Short Ideas

How Is The Market Feeling About Cardinal Health?

<p><strong>Globus Medical </strong>(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gmed#NYSE">GMED</a>) continues to gain from surging demand for its Musculoskeletal Solutions products. Meanwhile, the company is expanding in the overseas markets through the expansion of direct and distributor sales force. Yet, we are worried about a challenging macroeconomic scenario that continues to plague Globus Medical&#39;s profit margins. It has a Zacks Rank #3 (Hold) at present.</p>
<p>GMED is gaining market share in the musculoskeletal solutions space, banking on the strong performance of its implantable devices, biologics, accessories, and unique surgical instruments used in an expansive range of spinal, orthopedic and neurosurgical procedures.<br />
The company is particularly seeing notable gains across its product portfolio in expandables, biologics, MIS screws, 3D printed implants and cervical offerings. Over the past couple of quarters, this business has registered above-market growth, driven by competitive rep recruiting from prior quarters and robotic pull-through.<br />
In the fourth quarter, Legacy Globus&#39; musculoskeletal revenues surged 11.8%. The growth was led by the company&#39;s U.S. and international spine businesses, as well as continued share growth within trauma.<br />
Earlier, Globus Medical launched three new products &mdash; REFLECT, MARVEL and Ossifuse. The company continues to make significant progress in launching its prone, lateral patient positioning system. As the company moves into 2024, it anticipates a strong cadence of product launches throughout the Musculoskeletal portfolio.</p>
<div class="chart_embed">
<h3>Globus Medical, Inc. Price</h3>
<p><a href="https://www.zacks.com/stock/chart/GMED/fundamental/price?icid=chart-GMED-fundamental/price"><img alt="Globus Medical, Inc. Price" src="https://staticx-tuner.zacks.com/images/charts/63/1712230792.png" style="height:251px; width:538px" title="" /> </a></p>
<p>Globus Medical, Inc. price | Globus Medical, Inc. Quote</p>
</div>
<p>Globus Medical merged its business with NuVasive. The combined company forms a global musculoskeletal business, focused on rapid innovation, addressing unmet clinical needs and improving offerings to surgeons and patients. It capitalizes on GMED&#39;s complementary commercial organization and should allow the company to accelerate its globalization strategies to increase customer reach and strengthen surgeon relationships.<br />
The combined company is working to bring the best-in-class technologies to create a differentiated and comprehensive procedural solution offering as part of its approach to address unmet clinical needs and support surgeons and patients. According to Globus Medical, both the companies&#39; operational footprints are highly complementary, allowing them to better leverage each other&#39;s manufacturing and supply-chain resources to increase internal production while reducing the amount of required stand-alone capital investment. This way, they can redirect investments and improve cash flow.<br />
In terms of the latest development, NuVasive stand-alone sales for the fourth quarter were up 2% on a pro forma basis. This was primarily driven by continued market penetration in the international spine with 14% growth, market re-entry of key technology of NuVasive Specialty Orthopedics delivering 26% gains, and strengthening NuVasive Clinical Services increasing 6% from the prior- year level.</p>
<p>On the flip side, Globus Medical, like other industry players, is currently fighting negative trends in the global economy, including interest rate fluctuations, increases in inflation and financial market volatility. These factors are adversely impacting the company&#39;s operations and financial performance. The global inflation, in particular, has led to a significant rise in the cost of raw materials for the company. In the fourth quarter, GMED witnessed a 276.1% surge in the cost of goods sold.<br />
These macroeconomic factors, along with the rising wage and raw material costs, are also leading to a significant escalation in the company&#39;s operating expenses. SG&amp;A expenses in the reported quarter were up 107.3% from the year-ago quarter&#39;s level. Research and development expenses increased 167.9% year over year.</p>
<p>Meanwhile, the presence of a large number of players made the musculoskeletal devices market intensely competitive. The orthopedic industry, in particular, is highly competitive with the presence of more prominent players like Zimmer Biomet, Stryker, Johnson &amp; Johnson&#39;s DePuy, Smith &amp; Nephew and Medtronic. Globus Medical needs to constantly introduce or acquire new products to withstand the competitive pressure and maintain its market share.</p>
<h3>Key Picks</h3>
<p>Some better-ranked stocks in the broader medical space are <strong>DaVita</strong> (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dva#NYSE">DVA</a>), <strong>Stryker </strong>(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/syk#NYSE">SYK</a>) and <strong>Cardinal Health</strong> (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/cah#NYSE">CAH</a>). While DaVita presently sports a Zacks Rank #1 (Strong Buy), Stryker and Cardinal Health carry a Zacks Rank #2 (Buy) each.</p>
<p>DaVita&#39;s shares have risen 65.3% in the past year. Earnings estimates for DaVita have risen from $8.97 per share to $9.23 in 2024 and from $9.77 to $10.01 in 2025 in the past 30 days.</p>
<p>DVA&#39;s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 35.6%. In the last reported quarter, it posted an earnings surprise of 22.2%.</p>
<p>Estimates for Stryker&#39;s 2024 earnings per share (ETF:EPS) have remained constant at $11.86 in the past 30 days. Shares of the company have risen 21.5% in the past year compared with the industry&#39;s growth of 4,6%.</p>
<p>SYK&#39;s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 5.1%. In the last reported quarter, it delivered an earnings surprise of 5.8%.</p>
<p>Estimates for Cardinal Health&#39;s 2024 EPS have moved up to $7.29 from $7.28 in the past 30 days. Shares of the company have surged 45% in the past year compared with the industry&#39;s 11.7% growth.</p>
<p>CAH&#39;s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 15.6%. In the last reported quarter, it delivered an earnings surprise of 16.7%.</p>
<p><a href="https://www.zacks.com/stock/news/2250489/globus-medical-gmed-gains-from-new-launches-amid-macro-issues?cid=CS-BENZ-FT-analyst_blog|zer_report_update-2250489">To read this article on Zacks.com click here.</a></p>


GMED

Globus Medical (GMED) Gains From New Launches Amid Macro Issues

<p>Cardinal Health (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CAH#NYSE">CAH</a>) has outperformed the market over the past 5 years by 5.99% on an annualized basis producing an average annual return of 18.85%. Currently, Cardinal Health has a market capitalization of $27.26 billion. </p>
<p><strong>Buying $1000 In CAH:</strong> If an investor had bought $1000 of CAH stock 5 years ago, it would be worth <strong>$2,276.67</strong> today based on a price of $112.07 for CAH at the time of writing.</p>
<h3>Cardinal Health's Performance Over Last 5 Years</h3>
<p><img src="https://www.benzinga.com/files/images/story/2024/1711650615_0.png" alt="comp_fig" /></p>
<p>Finally -- what's the point of all this? The key insight to take from this article is to note how much of a difference compounded returns can make in your cash growth over a period of time.</p>
<p><em>This article was generated by Benzinga's automated content engine and reviewed by an editor.</em></p>


Here's How Much $1000 Invested In Cardinal Health 5 Years Ago Would Be Worth Today

<p>Cardinal Health (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CAH#NYSE">CAH</a>) has outperformed the market over the past 5 years by 4.35% on an annualized basis producing an average annual return of 16.9%. Currently, Cardinal Health has a market capitalization of $26.58 billion. </p>
<p><strong>Buying $100 In CAH:</strong> If an investor had bought $100 of CAH stock 5 years ago, it would be worth <strong>$220.87</strong> today based on a price of $109.26 for CAH at the time of writing.</p>
<h3>Cardinal Health's Performance Over Last 5 Years</h3>
<p><img src="https://www.benzinga.com/files/images/story/2024/1710518416_0.png" alt="comp_fig" /></p>
<p>Finally -- what's the point of all this? The key insight to take from this article is to note how much of a difference compounded returns can make in your cash growth over a period of time.</p>
<p><em>This article was generated by Benzinga's automated content engine and reviewed by an editor.</em></p>


Here's How Much You Would Have Made Owning Cardinal Health Stock In The Last 5 Years

<p><strong>Cardinal Health's</strong> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CAH#NYSE">CAH</a>) short percent of float has risen 13.87% since its last report. The company recently reported that it has <strong>7.78 million shares sold short</strong>, which is 4.27% of all regular shares that are available for trading. Based on its trading volume, <strong>it would take traders 3.1 days to cover their short positions on average.</strong></p>
<h3>Why Short Interest Matters</h3>
<p>Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock/">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.</p>
<p>Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.</p>
<p><strong>See Also:</strong> <a href="https://www.benzinga.com/short-interest"><strong>List of the most shorted stocks</strong></a></p>
<h3>Cardinal Health Short Interest Graph (3 Months)</h3>
<p><img src="https://www.benzinga.com/files/images/story/2024/1710342017_0.png" alt="short_fig" /></p>
<p>As you can see from the chart above the percentage of shares that are sold short for Cardinal Health has grown since its last report. This does not mean that the stock is going to fall in the near-term but traders should be aware that more shares are being shorted.</p>
<h3>Comparing Cardinal Health's Short Interest Against Its Peers</h3>
<p>Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.</p>
<p>According to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, Cardinal Health's peer group average for short interest as a percentage of float is 4.19%, which means the company has <strong>more</strong> short interest than most of its peers.</p>
<p>Did you know that increasing short interest can actually be <strong>bullish</strong> for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze/"><strong>This post by Benzinga Money explains how you can profit from it.</strong></a></p>
<p><em>This article was generated by Benzinga's automated content engine and was reviewed by an editor.</em></p>


Peering Into Cardinal Health's Recent Short Interest

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<p><a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a></p>
<p>Are we headed for a repeat of 2022&rsquo;s brutal selloff? While no one can predict the future with certainty, current market trends are raising some ominous red flags. After a meteoric rally fueled by the AI craze, many investors seem to be taking profits off the table. And who can blame them? The surge we&rsquo;ve witnessed is eerily reminiscent of the 2021 rally.</p>



<p>And let&rsquo;s not forget the potential domino effect for certain sectors. With tech and <a href="https://investorplace.com/industries/technology/artificial-intelligence/">AI stocks</a> commanding such hefty weightings in the major indexes, a selloff in these sectors could drag the broader market down&nbsp;with it. Some even fear such a selloff could induce a full-blown&nbsp;recession,&nbsp;as panic-stricken companies scramble to beat Wall Street&rsquo;s estimates in a desperate bid to revive their share prices.</p>



<p>Of course, this could&nbsp;just&nbsp;be a temporary 10% hiccup, akin to the summer 2023 correction we weathered. But if you&rsquo;re keen on protecting those hard-earned gains, it might be wise to shift into a defensive stance &ndash; at least for&nbsp;the time being. Here are seven defensive stocks worth considering as you batten down the hatches.</p>



<h2>McDonald&rsquo;s (MCD)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2024/02/mcd1600-1-300x169.png" alt="New McDonalds Being Built in 2020, Close Up of Main McD Sign"><div>Source: Retail Photographer / Shutterstock.com</div></div><p><strong>McDonald&rsquo;s</strong> (NYSE:<a href="https://investorplace.com/stock-quotes/mcd-stock-quote/"><strong>MCD</strong></a>) is a defensive stock that should be on every investor&rsquo;s radar, especially if&nbsp;we&rsquo;re headed&nbsp;for a market downturn. This fast-food titan has some of the stickiest demand&nbsp;out there&nbsp;&ndash; an impressive feat for a restaurant company where demand is typically cyclical.</p>



<p>Indeed, McDonald&rsquo;s has defied the odds time and again. The company <a href="https://www.forbes.com/2009/02/17/mcdonalds-recession-stock-intelligent-investing_0217_mcdonalds.html?sh=301b7431bd72">delivered solid returns even during the Great Recession</a>, barely taking a scratch during the COVID pandemic, bouncing back faster than most. The fact that McDonald&rsquo;s managed to deliver good performance even when restaurants were shutting down worldwide is a testament to the resilience of its business model. If there&rsquo;s a recession strong enough to knock down McDonald&rsquo;s, the stock market might be the least of your concerns.</p>



<p>What&rsquo;s more, McDonald&rsquo;s boasts a <a href="https://www.gurufocus.com/term/net-margin/MCD">stellar 33% net margin</a>, better than 98% of the restaurant industry. With a 3-year revenue growth rate of nearly 11%, this mature company is one of the best performers in its space. The stock&rsquo;s forward dividend yield of 2.4% sweetens the deal even further, providing a nice income stream to cushion any potential volatility. In short, McDonald&rsquo;s is one of the top defensive stocks that should be a core holding in any downturn-proof portfolio.</p>



<h2>Huntington&nbsp;Ingalls Industries (HII)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2022/11/hii1600-300x169.png" alt="Person holding smartphone with logo of US company Huntington Ingalls Industries Inc (HII) on screen in front of website Focus on phone display"><div>Source: Wirestock Creators / Shutterstock.com</div></div><p><strong>Huntington Ingalls Industries</strong> (NYSE:<a href="https://investorplace.com/stock-quotes/hii-stock-quote/"><strong>HII</strong></a>) is the largest military shipbuilding company in the United States. This global, all-domain defense provider also offers professional services to partners in government and industry. And here&rsquo;s the kicker &ndash; Huntington builds ships in more classes than any other U.S. naval shipbuilder.</p>



<p>If there&rsquo;s one thing you should know, it&rsquo;s that government contracts are some of the stickiest sources of revenue out there. Huntington Ingalls has big money locked down in a very lucrative industry. And with China ramping up its naval military production way beyond the U.S., I see the military shipbuilding space heating up even more. I doubt military spending would slow even if a&nbsp;bad&nbsp;recession takes place, given the hot geopolitical environment. </p>



<p>So,&nbsp;you&nbsp;can expect HII stock to keep delivering consistent, safe returns.&nbsp;The company&rsquo;s 1.9% dividend yield also makes it worthwhile to hold the stock,&nbsp;despite its lack of flashiness.&nbsp;However, if a war&nbsp;breaks out&nbsp;that requires substantial naval power, expect the company&rsquo;s growth to get&nbsp;a lot&nbsp;flashier.</p>



<h2>Flowers Foods (FLO)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2021/05/bakery-bread-1600-300x169.jpg" alt="bakery breads, buns and pastries on a wooden cutting board in a display case"><div>Source: shutterstock.com/ampersandphoto</div></div><p><strong>Flowers Foods</strong> (NYSE:<a href="https://investorplace.com/stock-quotes/flo-stock-quote/"><strong>FLO</strong></a>) is one of my favorite defensive stocks for reliable long-term returns. The trajectory of this stock over the past two years has been essentially unbroken, and despite a recent correction, it&rsquo;s back to compounding again. It&rsquo;s a lot like McDonald&rsquo;s in the sense that it&rsquo;s a discretionary name, but the demand here is&nbsp;very&nbsp;sticky and growing steadily. It&rsquo;s unlikely to disappoint from these levels.</p>



<p>Flower Foods&rsquo; dividend yield of 3.7% is&nbsp;also especially&nbsp;juicy here. I don&rsquo;t see massive swings in either direction for this stock, but the main aim of this article is to find stable picks, and this one is&nbsp;definitely&nbsp;not going much further down from current levels. You&rsquo;re paying just 20-times earnings and&nbsp;1-times forward sales for one of the most stable companies with&nbsp;big&nbsp;dividend payouts. Moreover, we could see earnings climb&nbsp;substantially&nbsp;once rates&nbsp;are cut, as this company <a href="https://investors.flowersfoods.com/~/media/Files/F/Flowers-Foods-V3/documents/events/Q4-2023/Q4-2023-Release.pdf">spends a lot of money on interest payments</a>.</p>



<h2>Colgate-Palmolive (CL)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2021/05/colgate-cl-stock-1600-300x169.jpg" alt="Colgate toothpaste and mouthwash in a cup with a toothbrush"><div>Source: monticello / Shutterstock.com</div></div><p><strong>Colgate-Palmolive</strong> (NYSE:<a href="https://investorplace.com/stock-quotes/cl-stock-quote/"><strong>CL</strong></a>) needs no introduction &ndash; it&rsquo;s a household name synonymous with reliable, recession-proof products. This consumer staples giant has some of the stickiest demand out there, unlikely to be knocked down by any economic downturn. The company offers stability and reliability in a volatile market, with a wide portfolio of products that people buy regardless of market conditions.</p>



<p>The stock&rsquo;s chart is about as boring as it gets if you zoom out, and that&rsquo;s precisely what you want during turbulent times. Even though Colgate has delivered some solid gains recently, I expect it to remain a steady&nbsp;Eddie&nbsp;going forward. This is exactly the kind of stock you&rsquo;d want to hold during a downturn. Just sit on that 2.26% dividend yield and let it compound while most other stocks shave a third of their value. You could then emerge from that storm as a winner. </p>



<p>Sure, the company&rsquo;s dividend growth has been weak, but Colgate remains a reliable source of income with over 60 years of consecutive raises.</p>



<h2>Cardinal Health (CAH)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/08/cah-stock-1-300x169.jpg" alt="Cardinal Health (CAH) sign with bushes in front of it"><div>Source: Shutterstock</div></div><p><a href="https://investorplace.com/industries/healthcare/">Healthcare stocks</a> like <strong>Cardinal Health</strong> (NYSE:<a href="https://investorplace.com/stock-quotes/cah-stock-quote/"><strong>CAH</strong></a>) are unavoidable if you&rsquo;re looking to build a stable portfolio. These companies have incredibly sticky demand, as health is not something you can compromise on. Moreover, American healthcare is notorious for being expensive, and domestic companies have immense pricing power that&rsquo;s not hugely restricted by the government. Cardinal Health has almost doubled since early 2022, and while the stock has seen downturns historically, those dips weren&rsquo;t drastic, and the company recovered quickly.</p>



<p>You&rsquo;re&nbsp;definitely&nbsp;paying a premium for this stock, but the company&rsquo;s execution is worth the price tag. Cardinal is <a href="https://seekingalpha.com/symbol/CAH/earnings/estimates">expected to see 10.4% revenue growth</a> and 26% earnings per share growth in 2024, and the stock has a forward dividend yield of 1.95%. All of that for just 14-times forward earnings is still very attractive, especially when you consider the company&rsquo;s neutral balance sheet.</p>



<h2>Dollar General (DG)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/07/dg1600-300x169.jpg" alt="Dollar General (DG) store front with yellow store sign, midday"><div>Source: Jonathan Weiss / Shutterstock.com</div></div><p>I&rsquo;ve been pounding the table on <strong>Dollar General</strong> (NYSE:<a href="https://investorplace.com/stock-quotes/dg-stock-quote/"><strong>DG</strong></a>) for quite some time after its plunge. It&rsquo;s the only stock on this list that has declined considerably. However, I still call it one of the safest bets right now because of that very decline. The stock is unlikely to go down much further, and a recovery has already started to take shape.&nbsp;In fact,&nbsp;I believe multi-bagger returns are possible here within a decade if you buy at current levels.</p>



<p>The expectations going forward can be described as pitiful, and we all know that established retail companies hardly disappoint when consumer confidence and spending inevitably bounce back and the company&rsquo;s stock returns to a fairer valuation. Dollar General also has a 1.65% forward dividend yield, so you&rsquo;ll be rewarded for holding it through the storm. <em>Gurufocus&rsquo; </em>model puts the <a href="https://www.gurufocus.com/stock/DG/summary">fair value for the stock at $272</a> right now. The stock currently trades at a paltry $143.</p>



<h2>Otis Worldwide (OTIS)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/08/construction-2-300x169.jpg" alt="stocks to buy: construction workers work on a concrete floor"><div>Source: Shutterstock</div></div><p><strong>Otis Worldwide</strong> (NYSE:<a href="https://investorplace.com/stock-quotes/otis-stock-quote/"><strong>OTIS</strong></a>) is a company that makes escalators, moving walkways, and other vertical transportation equipment. The stock doesn&rsquo;t have much of a history since the company went public fairly recently in 2020. However, I believe this company has the ingredients to remain a sticky business even during tough times.</p>



<p>Otis has strong underlying growth drivers, driven by an extensive portfolio of elevator units that could drive multiple expansion in the years ahead. We&rsquo;re looking at a very stable <a href="http://seekingalpha.com/symbol/OTIS/earnings/estimates">10% annual earrings growth going forward</a>, along with 4% annual revenue growth. There&rsquo;s also a 1.4% forward dividend yield to consider. </p>



<p>It&rsquo;s important to remember that elevator companies like Otis not only generate revenue from new elevator sales; they&rsquo;re also needed for routine upkeep of the huge amount of elevator units they operate. This leads to a very good base of recurring revenue that&rsquo;ll keep the business running during tough times.</p>



<p><em>On the date of publication, Omor Ibne Ehsan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com&nbsp;<a href="https://investorplace.com/corporate/investorplace-publishing-guidelines/" target="_blank">Publishing Guidelines.</a></em></p>
<div><p>Omor Ibne Ehsan is a writer at InvestorPlace. He is a self-taught investor with a focus on growth and cyclical stocks that have strong fundamentals, value, and long-term potential. He also has an interest in high-risk, high-reward investments such as cryptocurrencies and penny stocks. You can follow him on <a href="https://www.linkedin.com/in/omor-ibne-ehsan-56068022b/">LinkedIn</a>.</p></div><h3>More From InvestorPlace</h3>
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<p>The post <a href="https://investorplace.com/2024/04/a-repeat-of-2022-7-defensive-stocks-to-buy-before-the-correction/">A Repeat of 2022? 7 Defensive Stocks to Buy Before the Correction.</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.</p>