NEW YORK (TheStreet) -- There are hundreds of hospital across America and around the world that need specific kinds of products and services. Perhaps the most important ones they're buying involve minimizing procedural errors and maximizing patient satisfaction.Companies that help hospitals to meet and conform to the health care insurance industry's standards of reimbursable products and procedures have a bright future in the current global increase in people needing medical treatments. That's why CareFusion ( CFN) last week released quarterly earnings that were both strong and bodes well for the year ahead. CFN beat the Street's consensus estimate and added 1.6% to the company's gross operating margin. Jim Cramer, the co-portfolio manager of
"The new Snowden-Pencer laparoscopic scissors are very modular, so we can adjust a tray as we see fit to create a very cost-effective approach to our surgeries," said Dr. Ryan Tyner, a bariatric surgeon at Lovelace Westside Hospital in Albuquerque and Fellow of the American College of Surgeons. "I prefer to use the best instruments for my patients, and my personal opinion is that this is the best line on the market." That should make CFN shareholders smile with the same level of enthusiasm as the company's many product representatives. I also learned that for more than 50 years, Snowden-Pencer instruments from CareFusion have offered the medical community exceptional levels of performance and longevity. This harkens back to the days when CFN was a division of Cardinal Health ( CAH), which spun CareFusion off in 2009. CAH is a stock to watch. This $108 billion company headquartered in Dublin, Ohio, is in the business of improving the cost-effectiveness of health care in general. It also pays a 2.4% dividend! Back to CFN: The company also makes and develops market-leading technologies including infusion pumps, automated dispensing systems, ventilation and respiratory products, and services for data-mining surveillance. It has an extensive line of critically needed "interventional medicine" products. In the company's own words, "No patient, procedure or physician is the same, which is why CareFusion offers a full range of clinically relevant product choices for interventional procedures. Our products and services for interventional procedures are designed to meet individual patient needs and help physicians deliver positive clinical outcomes using minimally invasive and percutaneous techniques. "As an innovator in interventional medicine technologies, CareFusion offers unique products in a growing number of areas, including drainage, vertebral augmentation, biopsy and other diagnostic procedures." With such a diverse portfolio no wonder its profits are outstanding! Below is the kind of one-year chart an investor likes to see, both price-wise as well as CFN's trailing-twelve-month operating margin. It's almost picture perfect and when you take into consideration its most recent quarter's year-over-year earnings growth of 13.7%, you can see why the market likes CFN. CFN data by YCharts
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. Follow @m8a2r1 This article was written by an independent contributor, separate from TheStreet's regular news coverage. Make smarter trading decisions and provide investment ideas that could help make you richer. Bryan Ashenberg does the dirty work so you don't have to!