Cardinal's future looks rosey
I'm adding Cardinal Healthcare -- CAH -- to my Financial Tides Marketocracy VMNHI portfolio. CAH has hit 14 new highs in the last 20 trading sessions and is 4 for 5 recently. There has been a 32.64% price appreciation in the last 65 days and BarChart's technical indicators have 11 out of 13 buy signals for an overall 80% buy rating.
CAH is one of the leading providers of products and services to health care providers and manufacturers to help them improve the efficiency and quality of health care. These services and products include Pharmaceutical Distribution and Provider Services, Medical-Surgical Products and Services, Pharmaceutical Technologies and Services and Automation and Information Services.
18 Wall Street analysts follow the stock and there are 8 buy recommendations with no under performance or sell recommendations. They estimate a 3.4% sales growth and an 8.9% EPS growth. Good solid estimates.
Over on Motley Fool CAPS their members vote 402 to 37 that the stock will out perform the market and the All Stars agree with a vote of 134 to 8. The Wall Street columnists that Motley Fool follows think it will also out perform the market with a vote of 13 to 0. Good confirmations.
1 - Is hitting new high better than 50% of the time and a BarChart buy rating of 80% or better
2 - Has a positive Wall Street following with no trash talk
3 - Has a positive vote from CAPS members and Wall Street columnist
Recommendation: I'm adding to my Marketocracy VMNHI portfolio around 33 with a protective stop loss no lower than 30.
Jim Van Meerten is an investor who writes on financial matters here and on Financial Tides. Please leave a comment below or email FinancialTides@gmail.com
Disclosure: no positions in CAH at time of publication