Cardinal Health Poised for Growth Despite Risks, Stock Appears Undervalued
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Cardinal Health is a major global supplier of medical and pharmaceutical products including radiopharmaceuticals, surgical supplies, and more. It has seen strong revenue and earnings growth recently.
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The company operates at a negative equity due to large current liabilities, but generates positive cashflow. It recently announced a $1.2B acquisition to expand offerings.
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Forward revenue growth is estimated at 10.7%, the highest among peers. The stock appears significantly undervalued compared to peers.
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Downside risks are improving with lower inflation and interest expenses expected. However cybersecurity threats remain a concern.
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With new growth from acquisitions and partnerships, an upgraded buy rating is justified based on growth prospects and attractive valuation.