We will buy 50 shares of Cardinal Health at approximately $199. Following this transaction, the Jim Cramer Charitable Trust will own 525 shares of CAH stock, increasing its weight in the portfolio from 2.50% to 2.75%. We will be repurchasing some of our Cardinal Health stock following last week’s decline in earnings. The buys are in line with what was discussed when stock trading was restricted Friday morning. Although we were disappointed by some aspects of Cardinal’s quarterly report (such as the deviation in earnings for its Navista and Aeon reporting units and the $184 million impairment charge), we’re buying the stock because both management and the analyst community are confident in Cardinal’s ability to continue growing low-to-mid-teens earnings per share over the long term. Following the report, many analysts raised their estimates for Cardinal’s fiscal 2027 earnings per share for the third quarter of 2026. FactSet’s 2027 EPS consensus increased to $11.91 from about $11.60 prior to release. Negative price action and rising earnings estimates mean stocks are much cheaper on Monday than they were a week ago. As we noted on Friday, the stock currently trades at roughly 16.5 times forward 12-month estimates, according to FactSet. This is down from the P/E ratio of approximately 20 times in early March when we acquired the stock. Cardinal Health’s stock trades at a mid-teens one-year price-to-earnings ratio, and we believe this valuation is attractive. (Jim Cramer’s Charitable Trust is Long CAH. See here for a complete list of stocks.) As a subscriber to Jim Cramer’s CNBC Investment Club, you will receive trade alerts before Jim makes a trade. After Jim sends a trade alert, he waits 45 minutes before buying or selling stocks in his charitable trust’s portfolio. If Jim talks about a stock on CNBC TV, he will issue a trade alert and then wait 72 hours before executing the trade. The above investment club information is subject to our Terms of Use and Privacy Policy, along with our disclaimer. No fiduciary duties or obligations exist or arise from your receipt of information provided in connection with the Investment Club. No specific results or benefits are guaranteed.
