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 down 2.0%. By the end of trading, Cardinal Health fell $1.30 (-2.7%) to $47.07 on average volume. Throughout the day, 3,335,667 shares of Cardinal Health exchanged hands as compared to its average daily volume of 3,209,700 shares. The stock ranged in price between $46.91-$48.08 after having opened the day at $48.08 as compared to the previous trading day's close of $48.37. Other companies within the Wholesale industry that declined today were: Rada Electronics Industries ( RADA), down 8.3%, Aegean Marine Petroleum Network ( ANW), down 7.9%, Nash-Finch Company ( NAFC), down 4.7% and Commercial Vehicle Group ( CVGI), down 4.3%.
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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 $16.7 billion and is part of the services sector. The company has a P/E ratio of 14.6, below the S&P 500 P/E ratio of 17.7. Shares are up 17.5% year to date as of the close of trading on Wednesday. Currently there are 8 analysts that rate Cardinal Health a buy, no analysts rate it a sell, and 3 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 growth in earnings per share, increase in net income, notable return on equity, good cash flow from operations and increase in stock price during the past year. We feel these strengths outweigh the fact that the company shows low profit margins.

On the positive front, SED International Holdings ( SED), down 5.2%, Shengkai Innovations ( VALV), down 3.5%, Peerless Systems Corporation ( PRLS), down 2.3% and Taitron Components Inc. Class A ( TAIT), down 1.6%.

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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