Jim Cramer’s Bold Predictions About These 10 Healthcare Stocks

8. Cardinal Health, Inc. (NYSE:CAH)

Number of Hedge Fund Holders In Q3 2024: 40

Date of Cramer’s Comments: 8-20-24

Performance Since Then: 8.70%

Cardinal Health, Inc. (NYSE:CAH) is a medical products firm that sells surgical equipment and other supplies. While it has struggled amidst a broader healthcare spending slowdown in 2024, the firm has managed to stem its losses by focusing on the specialty drug market. These drugs are pricier than standard medicines, and Cardinal Health, Inc. (NYSE:CAH)’s $1.12 billion acquisition of Oncology Network has also expanded its presence in the industry. Cardinal Health, Inc. (NYSE:CAH)’s shares soared by 6.7% in November after the firm lifted its profit-per-share full-year guidance to $7.75 to $7.90 from an earlier $7.55 to $7.70.They gained an added 12% after the election and the firm’s new acquisitions to expand its presence in the diabetes and gastroenterology market. Here’s what Cramer said in August:

“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.”