Yahoo Finance Cardinal Health (CAH) to Extend Warehouse Footing With New Center
Cardinal Health, Inc. CAH recently announced the addition of a new distribution center in the Columbus, OH, area. This new facility, which is part of the company’s multi-year warehouse revamping growth plan, will operate state-of-the-art-warehouse technology and create new jobs.
In fact, this new facility will lend support to Cardinal Health’s at-Home Solutions business — a market-leading medical supplies provider and specialized business committed to offering comfortable care at home for people suffering from chronic and serious health conditions.
The new distribution center, located in Grove City, will help to create around 100 job opportunities for the Ohio Valley market and is expected to be operational in November 2022.
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
Per management at Cardinal Health, the healthcare industry is facing accelerated consumer demand for personalized experiences with respect to health care at home because of the pandemic. Expansion of the company’s warehouse presence optimizes its distribution network and improves its customer service levels, thereby putting the company in an advantageous position when it comes to sustained growth in the space of evolving patient care.
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It is worth mentioning that the 208,144 square-foot building will mark the 10th U.S. distribution center for Cardinal Health at-Home Solutions. The new facility is going to combine state-of-the-art logistics technology, which includes robotic storage capabilities, conveyance, and the Kinaxis RapidResponse platform, to advance digital supply chain planning.
Market Prospects
Per a report by Research and Markets, the global healthcare distribution market is anticipated to witness a CAGR of 6.4% during the forecast period (2019-2025). Hence, the announcement is well-timed for Cardinal Health.
Another Similar Development
In March, the company 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.
So, the new Grove City facility joins the abovementioned distribution center.
Price Performance
Shares of this Zacks Rank #4 (Sell) company have gained 4.5% on a year-to-date basis, against the industry’s decline of 13.5%.
Stocks to Consider
Some better-ranked stocks in the broader medical space are AMN Healthcare Services, Inc. AMN, Masimo Corporation MASI and Patterson Companies, Inc. PDCO.
AMN Healthcare surpassed earnings estimates in each of the trailing four quarters, the average surprise being 15.6%. The company currently sports a Zacks Rank #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 1.1%. The company’s earnings yield of 11.4% compares favorably with the industry’s (0.8%).
Masimo beat earnings estimates in each of the trailing four quarters, the average surprise being 4.4%. The company currently carries a Zacks Rank #2 (Buy).
Masimo’s estimated earnings growth rate for second-quarter 2022 is pegged at 22.3%. The company’s earnings yield is 3.8% against the industry’s (8.5%).
Patterson Companies surpassed earnings estimates in three of the trailing four quarters and missed once, the average surprise being 2.7%. The company currently carries a Zacks Rank #2.
Patterson Companies’ long-term earnings growth rate is estimated at 9.9%. The company’s earnings yield of 7.1% compares favorably with the industry’s 4.2%.
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Cardinal Health, Inc. (CAH) : Free Stock Analysis Report
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