Q2 FY26 summary | Q2 FY26 Q2 FY25 Y/Y | | | --- | --- | | Revenue $65.6 billion $55.3 billion 19 % | | | Operating earnings $707 million $549 million 29 % | | | Non-GAAP operating earnings $877 million $635 million 38 % | | | Net earnings attributable to Cardinal Health, Inc. $467 million $400 million 17 % | | | Non-GAAP net earnings attributable to Cardinal Health, Inc. $624 million $468 million 33 % | | | Effective Tax Rate 25.2 % 21.4 % | | | Non-GAAP Effective Tax Rate 21.4 % 21.4 % | | | Diluted EPS at ...

Core Insights - Cardinal Health, Inc. (CAH) is set to report its second-quarter fiscal 2026 results on February 5, with expectations of strong revenue and earnings growth driven by its Pharmaceutical and Specialty Solutions segment [2][3][4]. Financial Performance Expectations - The Zacks Consensus Estimate for CAH's revenues in Q2 fiscal 2026 is $64.49 billion, reflecting a 16.7% increase from the previous year [3]. - The consensus estimate for EPS is $2.37, indicating a 22.8% rise compared to the same period last year [3]. Revenue Growth Drivers - Revenue growth is anticipated to be robust, primarily due to the Pharmaceutical and Specialty Solutions segment, which has seen increased utilization across various product categories [4]. - In the first quarter, this segment's revenues grew by 23%, with a significant contribution from GLP-1 therapies, and profits increased by 26% [5]. Segment Performance Insights - Contributions from MSO platforms and BioPharma Solutions are expected to remain significant, although COVID vaccine distribution may have weakened year-over-year [6]. - The Global Medical Products and Distribution segment is projected to show mixed performance, with tariff-related costs expected to rise, potentially impacting profit growth [7]. - The Other segment, including at-Home Solutions and Nuclear and Precision Health Solutions, is likely to continue its strong growth trajectory, benefiting from high demand and early synergies from acquisitions [8]. Market Position and Share Performance - Over the past six months, CAH's shares have increased by 35.6%, outperforming the industry average growth of 16.9% [12]. - Despite this, CAH's performance has lagged behind the Zacks Medical sector's 5% increase and the S&P 500's 12.2% gain during the same period [12]. Earnings Beat Prediction - The company's earnings model suggests a likely earnings beat, supported by a positive Earnings ESP of +0.46% and a Zacks Rank of 2 (Buy) [10][11].

Core Viewpoint - McKesson Corporation is positioned as a leading healthcare services and information technology company, with strong anticipated earnings growth and revenue increase for the upcoming quarter [1][2]. Financial Performance - Analysts expect McKesson to report earnings per share (EPS) of $9.31, reflecting a 15.9% increase from the previous year [2][6]. - Revenue is projected to reach $105.54 billion, marking a 10.8% rise from the same quarter last year [2][6]. - The consensus EPS estimate has remained unchanged over the past 30 days, indicating strong analyst confidence in the company's performance [3][6]. Valuation Metrics - The price-to-earnings (P/E) ratio is 26.03, suggesting that investors are willing to pay a premium for the company's earnings [4][6]. - The price-to-sales ratio is 0.27 and the enterprise value to sales ratio is 0.29, indicating a reasonable valuation relative to sales [4]. - The enterprise value to operating cash flow ratio is 16.16, showcasing the company's cash flow generation capabilities [4]. Capital Structure and Liquidity - The earnings yield stands at 3.84%, providing insight into the return on investment [5][6]. - A negative debt-to-equity ratio of -5.63 indicates a unique capital structure that may require further analysis [5][6]. - The current ratio is 0.88, suggesting potential liquidity considerations as it is below the ideal level of 1.0 [5].

Group 1 - McKesson Corporation is highlighted as a stock that typically performs well during earnings reports, with a history of stock price increases following such announcements [1] - The company distributes pharmaceutical drugs and medical-surgical supplies, and also offers healthcare technology and business services [2] - Despite a significant top-line miss in the last quarter, McKesson reported a strong earnings beat and provided a higher-than-expected full-year earnings forecast [2] - The stock has gained 22% since the mention in the episode aired on May 14, 2025 [3] Group 2 - The healthcare sector is currently facing scrutiny from the president, particularly targeting drug middlemen and distributors [1] - McKesson, along with other drug distributors, is noted for being strong performers over the long term, despite the perception of being vulnerable to market fluctuations [2]

Core Insights - Investors should conduct a thorough review of a company's financial background rather than relying solely on real-time trading numbers, especially in a volatile market [1] - The interest coverage ratio is a critical indicator of a company's ability to meet its debt obligations, particularly in a tighter financial environment [2][4] Financial Metrics - Companies like Casey's General Stores, Brinker International, Cardinal Health, and Flowserve have strong interest coverage ratios, indicating their capacity to service debt [3] - The interest coverage ratio is calculated as Earnings before Interest & Taxes (EBIT) divided by Interest Expense, providing insight into a company's financial stability [5] - A ratio below 1 indicates potential default risk, while a higher ratio suggests a company can withstand financial challenges [7] Investment Strategy - A favorable investment strategy includes selecting stocks with an interest coverage ratio above the industry average, a Zacks Rank of 1 or 2, and a VGM Score of A or B [8][11] - Stocks meeting these criteria are likely to outperform in various market conditions [11] Company Highlights - Casey's General Stores has a Zacks Rank of 1, with a trailing four-quarter earnings surprise of 24.1% and projected sales and EPS growth of 8.8% and 18.8%, respectively, leading to a 44.6% stock increase over the past year [10][12] - Cardinal Health holds a Zacks Rank of 2, with a trailing earnings surprise of 9.4% and projected sales and EPS growth of 16.4% and 21.5%, respectively, resulting in a 71.5% stock surge [12][13] - Brinker International, also with a Zacks Rank of 2, has a trailing earnings surprise of 8.2% and projected sales and EPS growth of 7.7% and 18.7%, but its stock has declined by 16.6% [13][14] - Flowserve, with a Zacks Rank of 2, shows a trailing earnings surprise of 10.5% and projected sales and EPS growth of 4.6% and 31.9%, leading to a 26.2% stock increase [14][15]

Group 1 - The article emphasizes the importance of patience with dividend stocks, highlighting Cardinal Health (CAH) as a case where the market initially overlooked its underlying growth before it gained traction [2] - iREIT+HOYA Capital focuses on income-producing asset classes, aiming to provide sustainable portfolio income, diversification, and inflation hedging for investors [1][2] - The investment group offers research on various asset classes including REITs, ETFs, closed-end funds, preferreds, and dividend champions, targeting dividend yields up to 10% [2] Group 2 - The article does not provide any specific financial advice or recommendations, encouraging readers to conduct their own due diligence before making investment decisions [4][5] - There is a disclosure indicating that the author has no current positions in the mentioned companies but may initiate a long position in the near future [3]

Core Viewpoint - Cardinal Health is a resilient player in the healthcare services and products industry, competing effectively with major firms and showing growth potential [1][2]. Group 1: Stock Performance and Ratings - Cowen & Co. maintains a "Buy" rating for Cardinal Health, raising its price target from $225 to $233, reflecting confidence in the company's future performance [2][5]. - The stock recently closed at $210.93, with a 1.25% increase, outperforming the S&P 500's 0.5% gain [2][5]. Group 2: Financial Expectations - Cardinal Health's shares have risen by 0.02% over the past month, outperforming the Medical sector's decline of 0.63% [3]. - The Zacks Consensus Estimate forecasts revenue to reach $64.33 billion, marking a 16.41% rise from the prior year [4]. - Expected EPS for the upcoming earnings release on February 5, 2026, is $2.33, representing a 20.73% increase from the previous year [3][5]. - The company's market capitalization is approximately $50.12 billion, with a trading volume of 1,076,104 shares on the NYSE [4].

Core Insights - Albert Anthony is a Croatian-American business author and analyst contributing to Seeking Alpha with over 1,000 followers [1] - He has authored a book titled "Real Estate Investment Trusts (REITs): A Fundamental Analysis (2026 Edition)" available on Amazon [1] - Anthony has a background in business and information systems, having worked at Charles Schwab in the IT department [1] - He operates his own equities research firm, Albert Anthony & Company, remotely from Texas [1] - The author has participated in numerous business and innovation conferences and has hosted a program for Online Live TV Croatia [1] - He holds a B.A. in Political Science and various certifications including Microsoft Fundamentals and Risk Management specialization from CFI [1] - Anthony is also active on YouTube discussing REITs and is an investor in REIT stocks [1] Company and Industry Summary - Albert Anthony & Company is a Texas-registered boutique equities research firm managed entirely by Anthony [1] - The firm focuses on providing general market commentary and research based on publicly available data [1] - The author does not engage with non-publicly traded companies, small cap stocks, or startup CEOs [1] - The firm does not provide personalized financial advisory services or manage client funds [1]

分组1 - The article discusses the differences between dividend growth stocks and high-yield stocks, highlighting that long-term dividend growers are stable, mature companies with solid cash flows but limited growth, while high-yielders are more cyclical and depend on strong cash flow generation to support larger dividend payments [1] - The Schwab U.S. Dividend Equity ETF (SCHD) is assessed as a popular high-yield option, while the ProShares S&P 500 Dividend Aristocrats ETF (NOBL) represents a long-term dividend growth strategy [2] - The Schwab U.S. Dividend Equity ETF is benchmarked to the Dow Jones U.S. Dividend 100 Index, focusing on stocks that have paid dividends for at least 10 consecutive years, evaluating fundamental metrics and dividend history to select stocks [4] 分组2 - The Schwab U.S. Dividend Equity ETF has underperformed over the last three years due to a market preference for tech and AI stocks, with a portfolio allocation of 19% to energy stocks, 18% to consumer staples, and only 8% to technology, indicating a potential for turnaround if market conditions shift [5] - The ProShares S&P 500 Dividend Aristocrats ETF targets companies that have increased dividends annually for at least 25 consecutive years, typically consisting of mature companies that do not need to reinvest heavily in their business [6][7] - The ProShares S&P 500 Dividend Aristocrats ETF is characterized as a classic dividend growth strategy, while the Schwab U.S. Dividend Equity ETF combines elements of dividend growth, quality, and high yield, suggesting that SCHD may be better positioned as the market rotates away from tech [8]

Core Insights - Artificial intelligence (AI) is identified as the greatest investment opportunity of the current era, with a strong emphasis on the urgency to invest now [1][13] - The energy demands of AI technologies are significant, with data centers consuming as much energy as small cities, leading to concerns about power grid strain and rising electricity prices [2][3] Investment Opportunity - A specific company is highlighted as a critical player in the AI energy sector, owning essential energy infrastructure assets that are poised to benefit from the increasing energy demands of AI [3][7] - This company is not a chipmaker or cloud platform but is positioned to profit from the surge in electricity demand driven by AI data centers [3][6] Market Position - The company is described as a "toll booth" operator in the AI energy boom, collecting fees from energy exports and benefiting from the onshoring trend due to tariffs [5][6] - It has a unique footprint in nuclear energy, which is considered vital for America's future power strategy [7][14] Financial Health - The company is noted for being debt-free and holding a significant cash reserve, amounting to nearly one-third of its market capitalization, which positions it favorably compared to other energy firms burdened by debt [8][10] - It also has a substantial equity stake in another AI-related company, providing indirect exposure to multiple growth engines in the AI sector [9][10] Market Sentiment - There is a growing interest from Wall Street in this company, as it is seen as undervalued and capable of delivering real cash flows while being tied to critical infrastructure [8][10] - The company is trading at less than 7 times earnings, making it an attractive investment opportunity in the context of AI and energy [10][11]