Cardinal Health Is Trying Investors' Patience

Filed under: Stocks to Buy

Cardinal Health's shares (CAH), first discussed here on April 27, 2009 at a pre-spin-off price of $34.22, continued to meander over the past four months, but I still like the business model at this juncture. Here's why:



Cardinal probably will post a 3-5% 2010 revenue rise, followed by a 2-4% increase in 2011.



Key operation factors working in CAH's favor include increased prescription sales, modest pricing power, better performance of wider-margin generic drugs, lower customer attrition, and more-effective cost controls. Cardinal's medical unit, however, will lag other divisions, due to soft hospital markets.

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Cardinal Health Is Trying Investors' Patience originally appeared on BloggingStocks on Wed, 17 Nov 2010 17:30:00 EST. Please see our terms for use of feeds.

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