Cardinal Health Inc ( CAH Quick Quote CAH - Free Report) was recently awarded a $57.8-million contract to offer critical pandemic support throughout the United States in collaboration with the U.S. government. This, in turn, will help healthcare providers and first responders receive the much-needed critical products as quickly, efficiently and safely as possible to act on the ongoing COVID-19 emergencies with immediacy.
This collaboration should boost the company’s Medical segment.
More on the News
The contract includes options for the storage and distribution of 80,000 pallets of personal protective equipment (PPE) to aid the Strategic National Stockpile (SNS), which is part of the Office of the Assistant Secretary for Preparedness and Response within HHS. If exercised by the U.S. Department of Health and Human Services (HHS), the contract could reach $91.6 million
On the back of its extensive distribution network, Cardinal Health will be well-equipped to offer a rapid deployment and delivery of SNS product across the United States and its territories, per the U.S. government directive. Therefore, the company can urgently cater to critical PPE needs in response to the coronavirus pandemic as well as other national or localized public health crises.
PPE product within the SNS will be stored across U.S. Cardinal Health medical facilities, which comprise inventory from multiple manufacturers/vendors under contract with the U.S. Government. It is offered to numerous sources and care facilities.
In April 2021, Cardinal Health Specialty Solutions introduced Cardinal Health Navista Tech Solutions (TS), which is an advanced suite of technology solutions. The latest launch will enable community oncologists to boost patient outcomes and lower their treatment costs while they shift to value-based care.
In March, the company inked a deal to divest its Cordis business to Hellman & Friedman (H&F) for an amount of around $1 billion. Notably, the transaction is anticipated to be completed in the first half of fiscal 2022, subject to regulatory clearances and mandatory closing conditions.
Industry Prospects Per a Global Market Insights report , the critical care devices market size surpassed $32.2 billion and is anticipated to witness a 2.8% CAGR from 2020 to 2026. Hence this development is well-timed for Cardinal Health. Price Performance
Shares of this currently Zacks Rank #3 (Hold) company have gained 28.1% compared with the
industry’s rally of 22.5% in the past six months. Stocks to Consider
Some better-ranked stocks from the broader medical space are
Intuitive Surgical ( ISRG Quick Quote ISRG - Free Report) , The Cooper Companies ( COO Quick Quote COO - Free Report) and Veeva Systems ( VEEV Quick Quote VEEV - Free Report) . While Veeva sports a Zacks Rank #1 (Strong Buy), the other two carry a Zacks Rank #2 (Buy), presently. You can see the complete list of today’s Zacks #1 Rank stocks here
Intuitive Surgical has a projected long-term earnings growth rate of 8.5%.
The Cooper Companies has a projected long-term earnings growth rate of 11%.
Veeva has an estimated long-term earnings growth rate of 14.5%.
+1,500% Growth: One of 2021’s Most Exciting Investment Opportunities
In addition to the stocks you read about above, would you like to see Zacks’ top picks to capitalize on the Internet of Things (IoT)? It is one of the fastest-growing technologies in history, with an estimated 77 billion devices to be connected by 2025. That works out to 127 new devices per second.
Zacks has released a special report to help you capitalize on the Internet of Things’s exponential growth. It reveals 4 under-the-radar stocks that could be some of the most profitable holdings in your portfolio in 2021 and beyond.
Click here to download this report FREE >>