Its forward (one-year) PE ratio is less than 14, which suggests the stock price has room to run. That said, the price per share has come a long way (up over 23%) since its Nov. 16, 2012, intraday low of $26.34. Remember that CFN doesn't pay a dividend yet, but that could change as its levered free cash flow rises above the current level of almost $611 million.
Investors may be prudent to consider accumulating shares on the inevitable pullbacks and market down days. Along with its former parent Cardinal Health, CareFusion is a company that knows how to meet the medical and health care market's needs and to "ring the register" while doing so.
At the time of publication the author had no position in any of the stocks mentioned.
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