Core Insights - Cardinal Health has raised its fiscal year 2026 non-GAAP diluted EPS outlook to at least $10.00, up from the previous range of $9.65 to $9.85, reflecting strong performance across its operating segments [3][9] - The company anticipates Specialty revenues to exceed $50 billion in fiscal year 2026, representing a 16% compound annual growth rate (CAGR) over three years [4][9] - Cardinal Health has successfully transitioned its manufacturer distribution service agreements in response to the 2026 Medicare Drug Price Negotiation Program changes [7][9] Financial Outlook - The updated non-GAAP diluted EPS for fiscal year 2026 is projected to be at least $10.00, indicating a positive trend in the company's financial performance [3][9] - The increase in EPS expectations is attributed to effective execution of the company's strategic growth plan across its five operating segments [2][3] Specialty Growth - Cardinal Health expects Specialty revenues to surpass $50 billion in fiscal year 2026, driven by strong demand in specialty distribution and a projected 30% revenue growth in BioPharma Solutions [4][9] - The BioPharma Solutions segment has seen significant wins, including partnerships with leading manufacturers for patient support programs, serving over 1 million patients [5][9] Strategic Initiatives - The company introduced the ContinuCare™ Pathway program to simplify diabetes supply management for pharmacies and patients, enhancing access to diabetes supplies [10][11] - Publix Super Markets Inc. has enrolled its entire pharmacy network in the ContinuCare™ Pathway program, expanding its reach to over 11,000 retail and grocery pharmacies [12][9] Investor Engagement - Cardinal Health will present at the J.P. Morgan Healthcare Conference, providing further insights into its strategic initiatives and financial outlook [13]

Group 1: Lockheed Martin Corporation - Lockheed Martin Corporation (NYSE:LMT) was highlighted as a final trade by Jim Lebenthal, partner at Cerity Partners [1] - Shares of Lockheed Martin rose 2.9% to close at $511.57 following the U.S. operation that seized former Venezuelan president Nicolás Maduro [5] - The company is set to release its fourth-quarter earnings results before the market opens on January 29 [1] Group 2: QXO, Inc. - QXO, Inc. (NYSE:QXO) announced a $1.2 billion convertible offering funded by Apollo, chosen as a final trade by Stephen Weiss, chief investment officer of Short Hills Capital Partners [2] - Shares of QXO jumped 18.2% to settle at $23.30 during the session [5] Group 3: McKesson Corporation - McKesson Corporation (NYSE:MCK) was selected as a final trade by Joe Terranova, senior managing director for Virtus Investment Partners [2] - Barclays analyst Glen Santangelo initiated coverage of McKesson with an Overweight rating and set a price target of $960 [3] - McKesson is expected to report quarterly earnings of $9.28 per share, up from $8.03 per share in the year-ago period, with projected quarterly earnings of $105.98 billion compared to $95.29 billion a year earlier [4] - Shares of McKesson gained 0.2% to close at $824.92 during the session [5]

Group 1 - Cardinal Health plans to release second-quarter financial results for fiscal year 2026 on February 5, prior to the opening of trading on the New York Stock Exchange [1] - A webcast discussion of these results will begin at 8:30 a.m. Eastern [1] - The webcast and corresponding slide presentation can be accessed on Cardinal Health's Investor Relations page without an access code [2] Group 2 - Cardinal Health is a distributor of pharmaceuticals and specialty products, a supplier of home-health and direct-to-patient products and services, and an operator of nuclear pharmacies and manufacturing facilities [3] - The company provides performance and data solutions and is a global manufacturer and distributor of medical and laboratory products [3] - Cardinal Health's customer-centric focus drives continuous improvement and leads to innovative solutions that improve people's lives [3]

Core Insights - McKesson Corporation (MCK) reported strong fiscal second-quarter results, with consolidated revenues of $103 billion, reflecting a 10% year-over-year growth, and adjusted earnings per diluted share increasing by 39% to $9.86 [1][7] - The company raised its full-year adjusted EPS guidance to $38.35-$38.85, indicating a projected growth of 16-18% year over year, supported by broad-based execution and operating leverage [2][7] Short-Term Growth Drivers - Growth in the near term is expected to be driven by strength in North American Pharmaceutical distribution, accelerating specialty volumes, and rising contributions from prescription technology services [3] - The North American Pharmaceutical segment achieved an 8% revenue growth in the fiscal second quarter, bolstered by solid utilization trends and increased specialty distribution, particularly in GLP-1 medications, which generated $13.2 billion in quarterly revenues [3] - The Oncology and Multispecialty segment emerged as a significant catalyst, with revenues growing by 32% year over year and operating profit surging by 71% due to strong organic provider growth and contributions from acquisitions [4] Long-Term Growth Drivers - McKesson's long-term growth strategy focuses on scaling differentiated specialty platforms and deepening integration within the biopharma and provider ecosystem [9] - Key markets identified for growth include oncology, multispecialty care, and biopharma services, which are benefiting from rising drug complexity and increased demand for integrated solutions [9] - Investments in technology and automation are critical for long-term growth, with a focus on distribution automation, AI-enabled workflows, and cloud-based platforms to enhance efficiency and margin expansion [10][11] Competitive Landscape - Cardinal Health (CAH) is diversifying beyond core distribution and is progressing faster in transitioning to platform-based specialty services compared to McKesson, although it lacks McKesson's scale in oncology networks [13] - Cencora (COR) is pursuing higher-margin specialty solutions but is less integrated in provider services compared to McKesson [14] - CVS Health (CVS) participates in specialty distribution but operates within a more diversified payer-provider model, contrasting with McKesson's focus on specialty distribution and biopharma services [15] Conclusion - McKesson's fiscal second-quarter performance reinforces its position as a high-quality compounder in healthcare services, with strong near-term execution and rising earnings guidance providing visibility through fiscal 2026 [22] - Long-term investments in oncology, multispecialty platforms, and technology are expected to support durable growth beyond the current cycle, despite some operational complexities and regulatory uncertainties [22]

Group 1 - Cardinal Health, Inc. (NYSE:CAH) is recognized as one of the 20 Best Performing Dividend Stocks in 2025, indicating strong market performance and investor confidence [1] - The company has shifted its focus towards higher-margin areas such as specialty pharmaceuticals and managed services, resulting in significant earnings growth, with forecasts estimating a growth of 19.3% in FY 2026 and 12.6% in FY 2027 [2] - The current payout ratio for dividends is at a modest 30.6%, providing the company with flexibility to potentially increase returns to shareholders in the future [3] Group 2 - Cardinal Health has raised its fiscal 2026 outlook, now expecting adjusted earnings per share between $9.65 and $9.85, an increase from the previous range of $9.30 to $9.50, reflecting a strong first-quarter performance [4] - The forecast includes contributions from the pending acquisition of Solaris Health, expected to close in early November, which may further enhance the company's growth prospects [4] - Cardinal Health operates as a global healthcare company, involved in the distribution of pharmaceuticals and medical products, manufacturing medical supplies, and providing various healthcare services [5]

Core Insights - McKesson Corporation (NYSE:MCK) is recognized as one of the 14 Best Pharma Dividend Stocks to Buy in 2026 [1] - Deutsche Bank analyst George Hill raised McKesson's price target to $904 from $861 while maintaining a Buy rating, despite the company's planned spin-off of its med-surgical business [2] - McKesson has increased its fiscal 2026 profit forecast, expecting adjusted earnings per share between $38.35 and $38.85, up from a previous range of $38.05 to $38.55 [2] - The company reported adjusted earnings of $9.86 per share for the most recent quarter, exceeding estimates of $9.02, while revenue was $103.15 billion, slightly below expectations [3] - McKesson's US pharmaceutical unit generated sales of $86.5 billion, an 8% increase year-over-year, although it fell short of the $87.40 billion consensus forecast [3] - The company plans to reorganize into four operating segments to focus on higher-margin areas, particularly in cancer medicines [4] Financial Performance - McKesson's adjusted earnings per share for fiscal 2026 are projected to be between $38.35 and $38.85, which is an increase from the previous forecast [2] - The latest quarter's adjusted earnings were $9.86 per share, surpassing the expected $9.02 [3] - Revenue for the most recent quarter was reported at $103.15 billion, slightly below the anticipated $104.13 billion [3] Strategic Initiatives - McKesson is planning to exit its med-surgical business through an IPO and subsequent spin-off, expected to be completed by the end of 2027 [2] - The company aims to reorganize into four operating segments to enhance focus on higher-margin products, particularly in oncology [4]

Market Overview - Equity markets showed caution as major U.S. indices retreated from recent highs, with the Dow Jones Industrial Average down 249.04 points (0.51%) to 48,461.93, the S&P 500 down 24.20 points (0.35%) to 6,905.74, and the Nasdaq Composite down 118.75 points (0.50%) to 23,474.35 [1] - The commodities sector reflected this volatility, particularly in precious metals, where gold and silver experienced a sharp pullback [2] Interest Coverage Ratio - The interest coverage ratio is crucial for assessing a company's ability to meet its debt obligations, with a higher ratio indicating better financial health [3][6] - Companies with a strong interest coverage ratio, such as Stride, Inc. (LRN), Brinker International, Inc. (EAT), Amazon.com, Inc. (AMZN), and Cardinal Health, Inc. (CAH), are positioned well for 2026 [5][11] - A ratio below 1 indicates potential default risk, while a higher ratio suggests a company can withstand financial hardships [9] Company Performance and Projections - Stride, Inc. is projected to see EPS and sales growth of 3.1% and 4.6%, respectively, despite a 35.9% stock drop this year [11] - Cardinal Health's EPS and sales are expected to grow 19.7% and 16.2%, with the stock up 75.3% in 2025 [11][17] - Brinker International anticipates sales and EPS growth of 6.5% and 14.9%, respectively, with an 8.3% stock increase over the past year [15] - Amazon's sales and EPS are projected to grow 11.9% and 29.7%, respectively, with a 5.8% stock rise in the past year [16] Investment Strategy - A successful investment strategy should include stocks with an interest coverage ratio above the industry average, a favorable Zacks Rank, and a VGM Score of A or B [10][12] - Stocks that meet these criteria are likely to outperform in various market conditions [13]

If you enjoyed this, consider Ian's Insider Corner to enjoy access to similar initiation reports for all the new stocks that we buy. Membership also includes an active chat room, weekly updates, and my responses to your questions.McKesson ( MCK ) is one of the three major pharmaceutical drug distribution companies in the United States. It, along with Cardinal Health ( CAH ) and Cencora ( COR ), has a dominant position in the market and servesIan Bezek is a former hedge fund analyst at Kerrisdale Capital. He ...

Core Viewpoint - Flora Growth Corp. is rebranding to ZeroStack and is the first public company to provide exposure to Decentralized AI through the accumulation of $0G, its native cryptocurrency [1][6] Proposal Summaries - **Proposal 1**: Authority granted to the Board to change the company's name to "ZeroStack Corp." with 307,327 votes for and 53,559 against [2] - **Proposal 2**: Authority granted to create a new class of preferred shares, with 165,494 votes for and 32,278 against [2] - **Proposal 3**: Approval of the 2022 Plan Amendment to increase the number of Common Shares from 115,385 to 10% of fully diluted shares, with 167,124 votes for and 30,477 against [2] - **Proposal 4**: Approval of stock options grant to the CEO, CFO, and Executive Chairman, with 166,325 votes for and 30,688 against [3] - **Proposal 5**: Approval for issuance of Common Shares underlying pre-funded warrants from private placement transactions, with 53,843 votes for and 27,150 against [3] - **Proposal 6**: Approval for issuance of Common Shares underlying a convertible note issued to DeFi Development Corp., with 53,843 votes for and 27,076 against [3] - **Proposal 7**: Approval for issuance of Common Shares underlying a convertible note issued to Zero Gravity Labs Inc., with 54,609 votes for and 27,033 against [3] - **Proposal 8**: Authority granted for a forward share split of outstanding Common Shares at a ratio between 2:1 to 10:1, with 280,700 votes for and 70,061 against [4] - **Proposal 9**: Approval for adjournments or postponements of the Meeting if necessary, with no specific vote count provided [4] Meeting Outcomes - All proposals (1 through 9) were approved during the Special Meeting of Shareholders [5]

Group 1 - Cencora, Inc. (NYSE:COR) is recognized for distributing pharmaceuticals, vaccines, plasma products, and healthcare supplies, and also supports clinical trials and specialty distribution [1] - Jim Cramer highlighted Cencora as a strong performer in the pharmaceutical distribution sector, noting its recent earnings report which showed a slight top line miss but a significant earnings beat of 31 cents off a $4.11 basis [1] - Cramer compared Cencora favorably to Cardinal Health and McKesson, stating that these companies are consistently high performers in the market [1] Group 2 - The article suggests that while Cencora has potential as an investment, certain AI stocks may offer greater upside potential and less downside risk [2]