Jim Cramer Wants You to Check These 10 Stocks

7. Cardinal Health Inc. (NYSE:CAH)

Number of Hegde Fund Investors: 39

Jim Cramer recently discussed Cardinal Health Inc. (NYSE:CAH), one of the major pharmaceutical distributors in the U.S. Although Cardinal Health Inc. (NYSE:CAH) initially seemed promising, a setback occurred when OptumRx, their second-largest customer, decided not to renew their contract. This news caused the stock to drop 5% in one day.

“A while ago, we checked in with Cardinal Health, one of the three big drug distributors in America—some people call them pharmaceutical middlemen, but they’re more than that. I thought they told a pretty good story, frankly. However, since then, we learned that Cardinal’s second-largest customer, OptumRx, wouldn’t be renewing their contract, which initially sent the stock down 5% in a single session. That’s suboptimal. However, when the company reported last week, they delivered an 11-cent earnings beat on a $1.73 basis, with revenue significantly higher than expected, up 12% year-over-year. Even better, management raised the earnings forecast for the 2025 fiscal year, which just started for them. I think that’s pretty impressive.”

Cardinal Health Inc. (NYSE:CAH)’s emphasis on cost management and operational efficiency is expected to enhance profitability further, with a projected EPS growth of 2.72% in the coming year. Additionally, Cardinal Health Inc. (NYSE:CAH)’s investments in technology and improvements in its supply chain are set to bolster its market position and drive long-term growth. Given the ongoing strong demand for healthcare products, especially pharmaceuticals and medical supplies, Cardinal Health Inc. (NYSE:CAH) is well-positioned to capitalize on these trends, making it a strong investment choice.