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Cardinal Health (CAH) to Extend Medical Distribution Presence
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Cardinal Health, Inc. (CAH - Free Report) recently announced that it plans to establish a 574,670 square foot medical distribution center in the Columbus, OH region. It is worth mentioning that this new facility will replace the company’s present 235,000 square foot facility near Obetz, OH.
Apart from replacing Cardinal Health’s current facility, the bigger warehouse presence and operations can handle a full transition of existing employees while creating new job opportunities for the Ohio Valley market.
This move is likely to provide a boost to Cardinal Health’s pharmaceutical distribution capability, which is included as one of the services in the Pharmaceutical business.
More on the News
The new facility will combine automation and technology to aid Cardinal Health’s employees, which in turn will help in bolstering safety, service and quality. This integration is likely to provide operational efficiencies and better support fluctuations in volume and labor to offer customers a more stable and predictable experience.
Image Source: Zacks Investment Research
Per management at Cardinal Health, the new warehouse will help in meeting its customers’ current and future needs and is part of a multi-year strategy to increase U.S. warehouse capacity with extended inventory space.
It’s imperative to mention here that in collaboration with Duke Realty — a leading owner, developer, and manager of logistics and industrial properties — and its joint venture partners Columbus Regional Airport Authority and Capitol Square, Cardinal Health anticipates the new facility to be fully operational by late 2022 or early 2023.
Market Prospects
Per a report by Research and Markets, the global healthcare distribution market is anticipated to grow at a CAGR of 6.4% during the forecast period (2019-2025). Hence, the announcement is well-timed for Cardinal Health.
Recent Developments
This month, the company introduced the first surgical incise drape utilizing industry-leading antiseptic Chlorhexidine Gluconate (CHG). Per a senior consultant at Cardinal Health, CHG is a trustworthy topical antiseptic for surgical patient skin preparation and utilization of the antimicrobial properties of CHG in the actual adhesive of the surgical drape is an innovative approach. This, in turn, is likely to bolster patient care by lowering the risk of microbial contamination.
Again, this month, Cardinal Health Specialty Solutions launched Decision Path, the newest addition to the Navista Tech Solutions (TS) suite of technology solutions, to help oncology practices lower costs, improve patient care and drive success in transitioning to value-based care.
In February, the company, along with Cue Health Inc., announced the expanded distribution of Cue's professional use and over-the-counter COVID-19 tests.
Price Performance
Shares of this Zacks Rank #3 (Hold) company have gained 12% on a year-to-date basis, against the industry’s decline of 0.7%.
Key Picks
Some better-ranked stocks from the broader medical space are AMN Healthcare Services, Inc. (AMN - Free Report) , Henry Schein, Inc. (HSIC - Free Report) and McKesson Corporation (MCK - Free Report) .
AMN Healthcare surpassed earnings estimates in each of the trailing four quarters, the average surprise being 20%. The company currently sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
AMN Healthcare’s long-term earnings growth rate is estimated at 16.2%. AMN’s earnings yield of 8.8% compares favorably with the industry’s 0.3%.
Henry Schein beat earnings estimates in each of the trailing four quarters, the average surprise being 25.5%. The company currently carries a Zacks Rank #2 (Buy).
Henry Schein’s long-term earnings growth rate is estimated at 11.8%. HSIC’s earnings yield of 5.6% compares favorably with the industry’s 4.1%.
McKesson surpassed earnings estimates in each of the trailing four quarters, the average surprise being 20.6%. The company currently carries a Zacks Rank #2.
McKesson’s long-term earnings growth rate is estimated at 11.8%. MCK’s earnings yield of 8.8% compares favorably with the industry’s 4.1%.
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Cardinal Health (CAH) to Extend Medical Distribution Presence
Cardinal Health, Inc. (CAH - Free Report) recently announced that it plans to establish a 574,670 square foot medical distribution center in the Columbus, OH region. It is worth mentioning that this new facility will replace the company’s present 235,000 square foot facility near Obetz, OH.
Apart from replacing Cardinal Health’s current facility, the bigger warehouse presence and operations can handle a full transition of existing employees while creating new job opportunities for the Ohio Valley market.
This move is likely to provide a boost to Cardinal Health’s pharmaceutical distribution capability, which is included as one of the services in the Pharmaceutical business.
More on the News
The new facility will combine automation and technology to aid Cardinal Health’s employees, which in turn will help in bolstering safety, service and quality. This integration is likely to provide operational efficiencies and better support fluctuations in volume and labor to offer customers a more stable and predictable experience.
Image Source: Zacks Investment Research
Per management at Cardinal Health, the new warehouse will help in meeting its customers’ current and future needs and is part of a multi-year strategy to increase U.S. warehouse capacity with extended inventory space.
It’s imperative to mention here that in collaboration with Duke Realty — a leading owner, developer, and manager of logistics and industrial properties — and its joint venture partners Columbus Regional Airport Authority and Capitol Square, Cardinal Health anticipates the new facility to be fully operational by late 2022 or early 2023.
Market Prospects
Per a report by Research and Markets, the global healthcare distribution market is anticipated to grow at a CAGR of 6.4% during the forecast period (2019-2025). Hence, the announcement is well-timed for Cardinal Health.
Recent Developments
This month, the company introduced the first surgical incise drape utilizing industry-leading antiseptic Chlorhexidine Gluconate (CHG). Per a senior consultant at Cardinal Health, CHG is a trustworthy topical antiseptic for surgical patient skin preparation and utilization of the antimicrobial properties of CHG in the actual adhesive of the surgical drape is an innovative approach. This, in turn, is likely to bolster patient care by lowering the risk of microbial contamination.
Again, this month, Cardinal Health Specialty Solutions launched Decision Path, the newest addition to the Navista Tech Solutions (TS) suite of technology solutions, to help oncology practices lower costs, improve patient care and drive success in transitioning to value-based care.
In February, the company, along with Cue Health Inc., announced the expanded distribution of Cue's professional use and over-the-counter COVID-19 tests.
Price Performance
Shares of this Zacks Rank #3 (Hold) company have gained 12% on a year-to-date basis, against the industry’s decline of 0.7%.
Key Picks
Some better-ranked stocks from the broader medical space are AMN Healthcare Services, Inc. (AMN - Free Report) , Henry Schein, Inc. (HSIC - Free Report) and McKesson Corporation (MCK - Free Report) .
AMN Healthcare surpassed earnings estimates in each of the trailing four quarters, the average surprise being 20%. The company currently sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
AMN Healthcare’s long-term earnings growth rate is estimated at 16.2%. AMN’s earnings yield of 8.8% compares favorably with the industry’s 0.3%.
Henry Schein beat earnings estimates in each of the trailing four quarters, the average surprise being 25.5%. The company currently carries a Zacks Rank #2 (Buy).
Henry Schein’s long-term earnings growth rate is estimated at 11.8%. HSIC’s earnings yield of 5.6% compares favorably with the industry’s 4.1%.
McKesson surpassed earnings estimates in each of the trailing four quarters, the average surprise being 20.6%. The company currently carries a Zacks Rank #2.
McKesson’s long-term earnings growth rate is estimated at 11.8%. MCK’s earnings yield of 8.8% compares favorably with the industry’s 4.1%.