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Cardinal Health - AI Stock Analysis

Analysis generated February 26, 2025

Cardinal Health, Inc. is a health care services and products company primarily operating in two segments: Pharmaceutical and Medical. The company is headquartered in Dublin, Ohio, and is a prominent player in the healthcare supply chain. It provides pharmaceuticals and medical products to over 100,000 locations daily and employs approximately 50,000 people globally. Cardinal Health aims to enhance the cost-effectiveness of healthcare by improving product availability, distribution efficiency, customer satisfaction, and clinical expertise.

Fundamental Analysis

Examining Cardinal Health's revenue, the last quarter reported a total revenue of $52.3 billion. This figure represents a decrease of 12.45% compared to the previous quarter, indicating a short-term downturn. More concerning is the year-over-year decrease of 4.34% compared to the same quarter last year, highlighting potential longer-term issues in revenue generation.

On a more positive note, the company reported a net income of $416 million for the last quarter. This is a significant increase of 76.27% from the previous quarter, and an astounding increase of 3,566.67% compared to the same quarter last year. This indicates strong year-over-year growth in profitability.

The EBITDA for the last quarter was $640 million, reflecting an increase of 26.48% from the previous quarter. Year-over-year, EBITDA saw a remarkable increase of 1,154.90%. These figures suggest strong operational performance.

Cardinal Health's current Price to Earnings (P/E) ratio stands at 23.75, a value that appears within a conventional range, indicating that the stock may be fairly valued at current levels.

Technical Analysis

Today's stock price of Cardinal Health is $127.18, which is slightly down by 1.28% compared to a month ago, suggesting minor short-term concerns. However, when we look at the broader picture, the price has increased by 18.20% year-over-year, which signifies a positive long-term trend.

The moving averages further support this upward momentum: the current 10-day Simple Moving Average (SMA10) is 127.03, up from a previous SMA10 of 126.93. This indicates potential upward price movement. However, it's essential to note that the current Relative Strength Index (RSI) is 74.9, hinting at an overbought condition, which can be a bearish signal.

Alternative Data Analysis

Analyzing alternative data, Cardinal Health has 895 open positions according to the most popular job boards and this number has remained stable in recent months, indicating a steady position within the company. Employee sentiment concerning the business outlook is neutral, suggesting neither enthusiasm nor pessimism among staff.

From a customer acquisition perspective, the company's website has an estimated 2.5 million visitors, with no meaningful changes in traffic in recent months, implying stable interest in its offerings. However, customer engagement metrics on social media present a slight concern: Cardinal Health has 17,000 followers on Twitter, with no growth observed over the past few months, indicating stagnation in social media engagement.

Cardinal Health's AI score from AltIndex stands at 63, which is a buy signal according to the algorithm's comprehensive analysis, taking into account fundamental, technical, and alternative data.

Conclusion and Recommendation

In summary, Cardinal Health demonstrates a significant increase in net income and EBITDA despite a modest decline in revenue both quarter-over-quarter and year-over-year. Technically, the stock is in a bullish trend with a consistent upward movement in SMA but shows an overbought condition based on the RSI. Alternative data reveals stability in employment and web traffic, although social media engagement remains stagnant. Considering all these factors, the recommendation for Cardinal Health stock would be to hold or potentially buy given the overall positive long-term growth indicators and the AI score suggesting a buy signal.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.