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Cardinal Health - AI Stock Analysis

Analysis generated November 29, 2024

Cardinal Health, Inc. is a large American multinational healthcare services and products company. Headquartered in Dublin, Ohio, the company ranks among the largest distributors of pharmaceuticals and medical supplies globally. With a comprehensive network, Cardinal Health serves more than 24,000 pharmacies and over 85% of hospitals in the United States.

Fundamental Analysis

Revenue: The revenue for Cardinal Health in the last quarter was $52.3 billion. However, this represents a decrease of 12.45% compared to the previous quarter, indicating potential short-term financial strain. When compared to the same quarter last year, there is a decrease of 4.34%, which might be concerning if the trend continues.

Net Income: The net income for the last quarter was $416 million, representing a significant increase of 76.27% from the prior quarter. Year over year, the net income jumped by an astounding 3,566.67%, indicating robust earnings growth and effective cost management.

EBITDA: The EBITDA stood at $640 million, marking a 26.48% increase from the previous quarter. When compared to the same quarter last year, this figure has increased by 1,154.90%, further highlighting strong operational efficiency and profitability.

P/E Ratio: The current Price-to-Earnings (P/E) ratio of 23.54 aligns with industry norms. It does not appear overly expensive or cheap, suggesting the stock is fairly valued in the market.

Technical Analysis

Stock Price: Currently, the stock price is $122.63. This is an 11.42% increase from a month ago, indicating a positive short-term trend. Over the past year, the stock has risen by 16.73%, signaling long-term investor confidence.

Simple Moving Average (SMA): The current 10-day Simple Moving Average (SMA10) is $122.14, which is slightly higher than the previous SMA10 of $121.71. This uptrend suggests a potential upward momentum in the stock's price.

Relative Strength Index (RSI): The RSI is at 26.9, indicating an oversold condition and a potential bullish signal. Investors might interpret this as a buying opportunity at current levels.

Alternative Data Analysis

Job Postings and Employee Sentiment: Cardinal Health has 938 open positions, an 8% increase over the past couple of months. This signals potential expansion and growth. However, the business outlook among employees remains neutral, which is crucial to note.

Customer Acquisition: The company’s website experienced an estimated 2.6 million visitors, down by 7% in the last couple of months. This decline might indicate a loss of customer interest or market share, which is a concerning trend.

Customer Engagement: Cardinal Health has 17,000 Twitter followers, a decrease of 1% over the last couple of months. This subtle decline might point to reduced customer engagement and interest.

AltIndex AI Score: The AltIndex AI score, which evaluates based on fundamental, technical, and alternative data, is 55. This score suggests a 'hold' signal, neither strongly advising buying nor selling.

Conclusion and Recommendation

Cardinal Health presents a mixed bag of indicators. The revenue decline is a point of concern, but the strong growth in net income and EBITDA augurs well for the company’s profitability. The technical analysis suggests current bullish trends, supported by an increasing stock price and an oversold RSI. However, declining website traffic and social media followers might be red flags indicating waning customer interest. Based on the AltIndex AI score of 55, a prudent recommendation is to 'hold' the stock for the time being to see how these mixed signals unfold.

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.