Cardinal Health Inc (CAH): Today's Featured Wholesale Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Cardinal Health ( CAH) pushed the Wholesale industry lower today making it today's featured Wholesale laggard. The industry as a whole closed the day up 0.3%. By the end of trading, Cardinal Health fell 52 cents (-1.3%) to $39.29 on light volume. Throughout the day, two million shares of Cardinal Health exchanged hands as compared to its average daily volume of 3.1 million shares. The stock ranged in price between $39.18-$39.87 after having opened the day at $39.83 as compared to the previous trading day's close of $39.81. Other companies within the Wholesale industry that declined today were: InfoSonics Corporation ( IFON), down 17.1%, Hudson Technology ( HDSN), down 9%, Tessco Technologies ( TESS), down 7.8%, and Universal Power Group ( UPG), down 6%.
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Cardinal Health, Inc., a healthcare services company, provides pharmaceutical and medical products and services in the United States and internationally. The company operates in two segments, Pharmaceutical and Medical. Cardinal Health has a market cap of $13.56 billion and is part of the services sector. The company has a P/E ratio of 12.6, below the S&P 500 P/E ratio of 17.7. Shares are down 1.7% year to date as of the close of trading on Tuesday. Currently there are nine analysts that rate Cardinal Health a buy, no analysts rate it a sell, and two rate it a hold.

TheStreet Ratings rates Cardinal Health as a buy. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, notable return on equity, good cash flow from operations, increase in net income and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the wholesale industry could consider iShares Dow Jones US Cons Goods ( IYK) while those bearish on the wholesale industry could consider ProShares Ultra Sht Consumer Goods ( SZK).

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