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

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

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 0.3%. By the end of trading, Cardinal Health fell $1.53 (-2.4%) to $63.20 on average volume. Throughout the day, 3,616,868 shares of Cardinal Health exchanged hands as compared to its average daily volume of 2,890,700 shares. The stock ranged in price between $63.14-$64.93 after having opened the day at $64.69 as compared to the previous trading day's close of $64.73. Other companies within the Wholesale industry that declined today were: Spartan Stores ( SPTN), down 3.5%, Owens & Minor ( OMI), down 2.5%, Chindex International ( CHDX), down 2.2% and Rockwell Automation ( ROK), down 2.0%.

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 $22.1 billion and is part of the services sector. The company has a P/E ratio of 54.8, above the S&P 500 P/E ratio of 17.7. Shares are up 57.2% year to date as of the close of trading on Tuesday. Currently there are 11 analysts that rate Cardinal Health a buy, no analysts rate it a sell, and 2 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 increase in net income, solid stock price performance, growth in earnings per share, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

On the positive front, Armco Metals Holdings ( AMCO), up 3.3%, InfoSonics Corporation ( IFON), up 2.6%, Richardson Electronics ( RELL), up 2.2% and Chefs Warehouse Holdings ( CHEF), up 1.9% , were all gainers within the wholesale industry with Hain Celestial Group ( HAIN) being today's featured wholesale industry leader.

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).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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