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Cardinal Health's (CAH) Arm Unveils Supply Automation Solution

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Cardinal Health, Inc. (CAH - Free Report) recently announced that its business — WaveMark Supply Management and Workflow Solutions — can now be implemented in clinical labs throughout the United States. Interestingly, WaveMark is among the first in the industry to improve clinical lab processes with the help of cutting-edge automation.

Presently, WaveMark is utilized in above 2,500 operating rooms and procedural spaces in more than 300 hospitals across the nation.

This announcement is likely to provide a boost to Cardinal Health’s Medical segment.

Benefits of the Implementation

The implementation of WaveMark paves the way for the future of operational enhancement in the lab. This solution is crucial to alleviating the challenges plaguing the healthcare industry’s present workforce and supply chain.

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Per management, the solution will save time for staff and boost testing throughput, while increasing supply chain efficiency. The previous manual supply tasks can now be automated, thereby allowing clinical labs to focus on patient care.

Market Prospects

Per a report by Grand View Research, the global workflow management system market was worth $6.85 billion in 2020 and is projected to witness a CAGR of 30.6% from 2021 to 2028. Hence, this announcement comes at an opportune time for Cardinal Health.

Recent Developments

In October, Cardinal Health Specialty Solutions and Gastrologix — the only gastroenterology (GI)-specific group purchasing organization (GPO) in the United States — announced an agreement that designates Cardinal Health’s Metro Medical business as the primary supplier of pharmaceutical products for Gastrologix GPO and Digestive Health Network members, thereby providing expanded access to critical medicines for GI patients nationwide.

In the same month, the company announced that its cancer screening offerings from FUJIFILM Healthcare Americas Corporation and Polymedco, which can be carried out either outside of a doctor's office or with less invasive procedures, can aid in combating the increase in cancer-related deaths due to late-stage diagnoses from pandemic-related delays.

Price Performance

Shares of this Zacks Rank #3 (Hold) company have lost 7.9% on a year-to-date basis against the industry’s growth of 14.6%.

Stocks to Consider

Some better-ranked stocks in the broader medical space include Thermo Fisher Scientific Inc. (TMO - Free Report) , McKesson Corporation (MCK - Free Report) and AngioDynamics, Inc. (ANGO - Free Report) .

Thermo Fisher surpassed earnings estimates in each of the trailing four quarters, the average surprise being 9.02%. The company currently carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Thermo Fisher’s long-term earnings growth rate is estimated at 14%. The company’s earnings yield of 3.7% compares favorably with the industry’s (3.6%).

McKesson beat earnings estimates in each of the trailing four quarters, the average surprise being 19.9%. The company currently carries a Zacks Rank #2.

McKesson’s long-term earnings growth rate is estimated at 8.9%. The company’s earnings yield of 9.9% compares favorably with the industry’s 3.2%.

AngioDynamics surpassed earnings estimates in three of the trailing four quarters and missed once, the average surprise being 125.6%. The company currently sports a Zacks Rank #1.

AngioDynamics’ consensus mark for revenues for fiscal 2022 stands at $313.3 million, suggesting an improvement of 7.7% from the prior-year reported figure. The company’s earnings yield of 0.1% compares favorably with the industry’s (3.6%).