Cardinal Story

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CAH -- USA Stock  

USD 47.30  0.09  0.19%

The predictive indicators we use to evaluate Cardinal help investors to analyze its daily demand and supply, volume, patterns, and price swings to determine the real value of Cardinal Health. We apply different methods to arrive at the intrinsic value of Cardinal based on widely used predictive technical indicators. Today we will concentrate on Cardinal Health. What exactly are Cardinal Health shareholders getting in September?
Published over a month ago
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Should I exit my Cardinal Health (NYSE:CAH) position?
Cardinal Health has performance score of 3 on a scale of 0 to 100. The firm shows a Beta (market volatility) of 0.9961, which signifies possible diversification benefits within a given portfolio. Let's try to break down what Cardinal's beta means in this case. Cardinal Health returns are very sensitive to returns on the market. As the market goes up or down, Cardinal Health is expected to follow. Although it is extremely important to respect Cardinal Health historical returns, it is better to be realistic regarding the information on equity current trending patterns. The philosophy towards foreseeing future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By analyzing Cardinal Health technical indicators, you can presently evaluate if the expected return of 0.14% will be sustainable into the future. Cardinal Health right now shows a risk of 2.76%. Please confirm Cardinal Health semi variance, rate of daily change, and the relationship between the value at risk and kurtosis to decide if Cardinal Health will be following its price patterns.
The successful prediction of Cardinal Health stock price could yield a significant profit to investors. But is it possible? The efficient-market hypothesis suggests that all published stock prices of traded companies, such as Cardinal Health, already reflect all publicly available information. This academic statement is a fundamental principle of many financial and investing theories used today. However, the typical investor usually disagrees with a 'textbook' version of this hypothesis and continually tries to find mispriced stocks to increase returns. We use internally-developed statistical techniques to arrive at the intrinsic value of Cardinal Health based on Cardinal Health hews, social hype, general headline patterns, and widely used predictive technical indicators. We also calculate exposure to Cardinal Health's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Cardinal Health's related companies.

Use Technical Analysis to project Cardinal expected Price

Cardinal Health technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
A focus of Cardinal Health technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of Cardinal Health trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for Cardinal Health, but it might be worth checking our own buy vs. sell analysis

Cardinal Health exotic insider transaction detected

Legal trades by Cardinal Health insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Cardinal insider trading alert for general transaction of employee stock option (right to buy) by English Patricia M, Chief Accounting Officer, on 10th of September 2020. This event was filed by Cardinal Health Inc with SEC on 2020-09-10. Initial filing of beneficial ownership - SEC Form 3 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Breaking down the case for Cardinal Health

The modest gains experienced by current holders of Cardinal Health could raise concerns from stockholders as the firm closed today at a share price of 52.11 on 5,216,272 in volume. The company directors and management have been quite successful in maneuvering the stock at opportune times to take advantage of all market conditions in July. The stock standard deviation of daily returns for 30 days investing horizon is currently 2.76. The current volatility is consistent with the ongoing market swings in July 2020 as well as with Cardinal Health unsystematic, company-specific events.
 2017 2018 2019 2020 (projected)
Long Term Debt to Equity1.321.21.080.89
Interest Coverage0.387.018.0610.96

Cost of Revenue Breakdown

Cardinal Health Cost of Revenue is increasing over the last several years with slightly volatile swings. Cost of Revenue is predicted to flatten to about 146.6 B. Cost of Revenue usually refers to the aggregate cost of goods produced and sold and services rendered during the reporting period. Cardinal Health Cost of Revenue is most likely to increase significantly in the upcoming years. The last year's value of Cost of Revenue was reported at 159.5 Billion
201385.92 Billion
201496.82 Billion
2015115 Billion
2016123.43 Billion
2017129.63 Billion
2018138.7 Billion
2019159.5 Billion
2020146.59 Billion

Will Cardinal Health slide back in September?

Cardinal Health current risk adjusted performance boosts over 0.23. Cardinal Health currently demonstrates below-verage downside deviation. It has Information Ratio of 0.05 and Jensen Alpha of 0.13. However, we do advice investors to further question Cardinal Health expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

Our Conclusion on Cardinal Health

While some other firms in the medical distribution industry are either recovering or due for a correction, Cardinal Health may not be performing as strong as the other in terms of long-term growth potentials. With a less-than optimistic outlook for your 30 days horizon, it may be a good time to trade some or all of your Cardinal Health holdings as it seems the potential growth was already fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Cardinal Health.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Cardinal Health. Please refer to our Terms of Use for any information regarding our disclosure principles.

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