On CNBC's “Mad Money Lightning Round,” Jim Cramer recommended selling BP p.l.c. (NYSE:BP) .On the earnings front, BP, on Nov. 4, posted third-quarter adjusted earnings of 85 cents per American depositary share, topping the consensus estimate of 75 cents. Total revenue rose to $48.42 billion from $47.25 billion in the same quarter last year, falling short of analyst projections of $51.38 billion.Cramer said, although he likes Cencora, Inc. (NYSE:COR) a lot, Cardinal Health, Inc. (NYSE:CAH) has “got them all ...

Core Insights - Cencora (COR) is expected to report quarterly earnings of $3.79 per share, reflecting a year-over-year increase of 13.5% [1] - Projected revenues for the quarter are anticipated to be $83.16 billion, which represents a 5.2% increase from the previous year [1] - The consensus EPS estimate has been adjusted upward by 0.3% over the past 30 days, indicating a reassessment by analysts [1] Revenue Projections - Analysts project 'Revenue- Total International Healthcare Solutions' to reach $8.00 billion, indicating an 8.3% increase from the prior-year quarter [4] - The consensus for 'Revenue- Total U.S. Healthcare Solutions' is $75.11 billion, reflecting a year-over-year change of 4.8% [4] - 'Revenue- International Healthcare Solutions- Alliance Healthcare' is expected to be $6.47 billion, showing an 8.9% year-over-year increase [5] - 'Revenue- U.S. Healthcare Solutions- Animal Health' is estimated at $1.36 billion, suggesting a decline of 3.1% year over year [5] - The estimate for 'Revenue- U.S. Healthcare Solutions- Human Health' stands at $73.80 billion, indicating a 5% increase from the previous year [5] - 'Revenue- International Healthcare Solutions- Other Healthcare Solutions' is forecasted to reach $1.61 billion, reflecting an 11.7% increase [6] Operating Income Estimates - 'Operating income- Non-GAAP- International Healthcare Solutions' is projected to be $170.29 million, compared to $153.67 million from the previous year [6] - 'Operating income- Non-GAAP- U.S. Healthcare Solutions' is expected to arrive at $840.57 million, up from $697.38 million year-over-year [7] Stock Performance - Cencora shares have increased by 10.6% over the past month, outperforming the Zacks S&P 500 composite, which rose by 2.1% [7] - Cencora holds a Zacks Rank 3 (Hold), indicating it is expected to closely follow overall market performance in the near term [7]

Core Insights - Cardinal Health (CAH) is establishing a new pharmaceutical distribution facility in Indianapolis, enhancing its supply-chain modernization efforts and aiming for over 70,000 daily deliveries of pharmaceutical and specialty products nationwide [1][4] - The 230,000-square-foot facility will utilize a robotic storage and retrieval system, enabling real-time inventory management and intelligent order fulfillment, setting a new standard in automated distribution [2][7] - Cardinal Health's stock has increased by 31.3% this year, significantly outperforming the industry growth of 1.1% and the S&P 500 Index's gain of 15.1% [3] Investment and Expansion Strategy - The Indianapolis facility, expected to be operational by fall 2027, is part of a broader multi-year transformation strategy that includes recent infrastructure upgrades and automation enhancements [4][11] - The company has also opened a Consumer Health Logistics Center in Groveport, OH, and a distribution center in Fort Worth, TX, adding over 750,000 square feet of distribution capacity in three years [9][10] - Cardinal Health's investments across pharmaceutical, consumer health, and at-home care sectors are designed to improve logistics efficiency, reduce transit times, and enhance customer service [10][12] Market Outlook - The healthcare distribution market is projected to grow to $2.2 trillion by 2034, with a compound annual growth rate (CAGR) of 7.1%, driven by rising demand for specialty drugs and home-based care [12] - Cardinal Health's strategic investments position the company to capitalize on this market growth, enhancing its competitiveness and potential for long-term shareholder value [12]

Group 1 - The presentation features the management team of Cardinal Health, including CEO Jason Hollar, CFO Aaron Alt, and Head of Investor Relations Matt Sims [1] - Allen Lutz, a health care tech and distribution analyst at Bank of America, is leading the presentation [1] - The event is aimed at discussing Cardinal Health's strategies and performance in the healthcare sector [1]

Summary of Cardinal Health 2025 Conference Call Company Overview - **Company**: Cardinal Health (NYSE: CAH) - **Industry**: Healthcare Supply Chain - Cardinal Health operates across the entire U.S. healthcare supply chain, connecting innovators, manufacturers, and patients, with a significant focus on pharmaceutical and specialty solutions, which account for over $200 billion of the total $220 billion in revenue [4][6]. Core Business Segments - **Pharmaceutical and Specialty Solutions**: The cornerstone of Cardinal Health's operations, contributing significantly to revenue and profitability [4][5]. - **Growth Businesses**: Includes Nuclear & Precision Health Solutions, At-Home Solutions, and OptiFreight® Logistics, which are positioned for growth due to unique market trends [5][6]. - **Global Medical Products and Distribution (GMPD)**: A turnaround business that has improved profitability after previous losses due to inflation and tariffs [6][10]. Financial Performance and Guidance - Cardinal Health achieved an 18% growth in earnings per share (EPS), exceeding the previously projected 12% to 14% growth [9][14]. - Long-term growth plans include generating adjusted free cash flow of at least $10 billion and maintaining a solid balance sheet with a BBB rating [18][19]. - The company plans to return $750 million to shareholders and maintain a growing dividend, emphasizing its status as a dividend aristocrat [18][19]. Strategic Initiatives - **Investor Day Takeaways**: Focus on accountability, performance measurement, and strategic evolution across five operating segments [8][10]. - **Investment in Technology**: Cardinal Health is investing in automation and technology to enhance operational efficiency, including refreshing distribution centers [12][46]. - **Acquisitions**: Recent acquisitions, such as Solaris in the urology space, are aimed at expanding capabilities and driving growth in specialty services [15][30]. Market Trends and Demand - Strong demand in the pharmaceutical and specialty solutions business is driven by procedures and scripts, with expectations of continued growth despite potential normalization in industry growth trends [21][20]. - The company anticipates a slight headwind from COVID vaccine contributions compared to previous years, but overall demand remains strong [27][29]. Management Services Organization (MSO) Strategy - Cardinal Health is focusing on acquiring practices in fragmented markets like autoimmune and urology, with a goal to create scale and provide comprehensive services to physicians [30][35]. - The MSO strategy aims to consolidate independent practices, providing them with back-office support and technology to enhance operational efficiency [31][40]. Challenges and Risks - Potential impacts from drug pricing policies and tariffs are acknowledged, but Cardinal Health believes it is well-positioned to manage these risks due to its diverse revenue streams and operational model [43][49]. - The company is cautious about the evolving landscape of generics, with expectations of increased contributions from generics over the next few years due to higher loss of exclusivity (LOE) [51][54]. Conclusion - Cardinal Health is strategically positioned for growth with a focus on its core pharmaceutical and specialty solutions business, while also expanding its presence in high-growth areas through acquisitions and investments in technology. The company remains committed to delivering value to shareholders while navigating industry challenges and market dynamics.

Company Overview - Henry Schein is the largest distributor of health care products and services to office-based practitioners in North America and Europe [1]. Leadership - The presentation features key executives from Henry Schein, including Chairman and CEO Stanley Bergman, CFO Ron South, CEO of Global Distribution and Technologies Andrea Albertini, and CEO of Henry Schein Products Group Tom Popeck [2]. Conference Context - This marks the 22nd or 23rd conference that the CEO Stanley Bergman has participated in with the senior medical technology analyst at Baird, indicating a long-standing relationship and ongoing dialogue [2].

Group 1 - Cardinal Health is highlighted as a top investment idea for 2025 by the research analyst Eric Coldwell [1] - The presentation features key executives from Cardinal Health, including CEO Jason Hollar and CFO Aaron Alt [1] - The discussion emphasizes the positive relationship and collaboration between the research analyst and Cardinal Health [2][3] Group 2 - Forward-looking statements will be made during the presentation, which are subject to risks and uncertainties [4] - The company encourages reviewing SEC filings for a detailed description of factors that could affect actual results [4]

Group 1 - Cardinal Health is highlighted as a top investment idea for 2025 by the research analyst Eric Coldwell [1] - The presentation features key executives from Cardinal Health, including CEO Jason Hollar and CFO Aaron Alt [1] - The discussion emphasizes the positive relationship and collaboration between the research analyst and Cardinal Health [2][3] Group 2 - Forward-looking statements will be made during the presentation, which are subject to risks and uncertainties [4] - The company encourages reviewing SEC filings for a detailed description of factors that could affect actual results [4]

Summary of Henry Schein 2025 Conference Call Company Overview - **Company**: Henry Schein (NasdaqGS:HSIC) - **Industry**: Healthcare products and services distribution, specifically dental and medical sectors - **Key Executives Present**: Stanley Bergman (Chairman and CEO), Ron South (CFO), Andrea Albertini (CEO of Global Distribution and Technologies), Tom Popeck (CEO of Henry Schein Products Group) [1][5][6] Core Points and Arguments - **Company Performance**: Henry Schein is in good shape, with high growth and high margin products contributing nearly 60% of operating income [5] - **Cyber Incident Recovery**: The company has largely recovered from a cyber incident that occurred in October 2023 [5] - **Historical Growth**: Transitioned from a catalog company with $200 million in revenue to $13 billion overall, with $8 billion in dental revenue [6] - **Customer Base**: Serves over a million customers globally, focusing on operational efficiency and clinical care [9] - **Market Stability**: The dental market is stable, with signs of recovery in Europe and a bounce back in the U.S. after tariff-related uncertainties [13][15] - **Technology Adoption**: Continued adoption of technology is seen as a tailwind for growth, especially in improving practice efficiency [15] Specialty Business Insights - **Specialty Demand**: The specialty business, particularly in dental implants and endodontics, is growing faster than the general business, with strong performance noted in Europe and Latin America [19] - **Endodontics Resilience**: The endodontic segment remained stable during COVID-19, as it involves urgent care [19] Pricing and Tariff Strategies - **Price Increase Mitigation**: The company is working with suppliers to mitigate the impact of tariffs rather than automatically passing price increases to customers [20][23] - **Cost Management**: Strategies are in place to manage costs effectively, with some price increases already implemented in certain product categories [23] Future Guidance and Growth Projections - **2026 Growth Expectations**: The company aims for upper single to low double-digit growth rates, with 2025 serving as a baseline year [30][34] - **Value Creation Projects**: Initiatives are underway to optimize gross profit and operational efficiency, with expected benefits starting in 2026 [34][40] Leadership Transition - **CEO Transition**: Stanley Bergman will transition to Chairman of the Board at the end of the year, with a focus on finding a successor who understands the complexities of the healthcare distribution business [52][54] Innovation and R&D Concerns - **Need for Innovation**: There is a concern regarding the lack of new product innovation in the dental market, with a call for more R&D from manufacturing partners [70][72] - **Technology Focus**: Emphasis on leveraging technology, particularly AI, to drive operational efficiency and clinical optimization [72] Financial Updates - **Share Repurchase Authorization**: A new $750 million share repurchase authorization was announced, providing flexibility for capital allocation [83][87] Additional Insights - **Supplier Relationships**: Overall good relationships with suppliers, though there are concerns about innovation and the need for new products [65][70] - **Market Demand**: There is a strong demand for dental services, with a focus on improving efficiency and cost of care through innovative materials and technologies [81][82]

Market Overview - Recent market pullback due to new tariffs and a slowdown in job growth has shaken investor confidence, with July nonfarm payrolls rising by only 73,000, significantly below expectations [1] - June's job numbers were revised downward, indicating a weaker labor market than previously thought [1] - Renewed trade tensions have fueled expectations of a Federal Reserve rate cut and increased risk aversion, leading to sharp declines in major indices [1] Importance of Financial Health - Investors should not rely solely on stock price movements; understanding a company's fundamentals is crucial for informed decision-making in an unpredictable market [2] - Sales and earnings metrics can be misleading; the interest coverage ratio is a key indicator of a company's ability to meet financial obligations [3][4] Interest Coverage Ratio - The interest coverage ratio measures how effectively a company can pay interest on its debt, calculated as Earnings before Interest & Taxes (EBIT) divided by Interest Expense [5] - A higher interest coverage ratio indicates a greater ability to meet financial commitments, while a ratio below 1 suggests potential default risks [6][7] - Companies with strong interest coverage ratios include The Walt Disney Company, BJ's Wholesale Club, Ralph Lauren, and McKesson Corporation, all of which demonstrate solid debt-servicing capabilities [9][11] 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][10] - The selected companies have shown strong earnings surprises and are projected to grow sales and earnings in the coming year [9][11] Company Performance Highlights - **Walt Disney Company**: Zacks Rank 2, VGM Score B, with a trailing four-quarter earnings surprise of 16.4% and projected sales and EPS growth of 4% and 16.3% respectively [12] - **BJ's Wholesale Club**: Zacks Rank 2, VGM Score B, trailing four-quarter earnings surprise of 17.7%, with projected sales and EPS growth of 5.5% and 6.2% respectively [13] - **Ralph Lauren**: Zacks Rank 2, VGM Score B, trailing four-quarter earnings surprise of 9%, with projected sales and EPS growth of 3.8% and 11.8% respectively [14] - **McKesson Corporation**: Zacks Rank 2, VGM Score A, trailing four-quarter earnings surprise of 3.9%, with projected sales and EPS growth of 13.1% and 12.7% respectively [15]