Group 1 - HCA Healthcare, Inc. operates a network of 190 hospitals and approximately 2,400 ambulatory care sites, with a significant reduction in share count by 44% since the end of 2015 [1] - The stock reached new all-time highs last month but has since pulled back nearly $50 without a specific reason, indicating a potential buying opportunity [1] - L1 Capital has reduced its investment in HCA Healthcare due to strong share price appreciation, although it remains a retained investment, no longer a top 10 holding [2] Group 2 - The market has previously reacted pessimistically to potential regulatory developments affecting HCA, creating opportunities for investment at attractive price levels [2] - Current expectations for operating conditions are more balanced, and the share price has increased significantly, leading to a less favorable risk-adjusted return potential from the current price [2] - There is a belief that certain AI stocks may offer greater upside potential and carry less downside risk compared to HCA [2]

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market engagement and confidence [1] - The Zacks Style Scores are designed to help investors identify stocks with the highest potential to outperform the market in the short term [2] Zacks Style Scores Overview - The Style Scores categorize stocks into four types: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5][6] - Value Score emphasizes finding undervalued stocks based on financial ratios [3] - Growth Score assesses a company's future earnings and financial health to identify sustainable growth opportunities [4] - Momentum Score capitalizes on price trends and earnings outlook changes to identify favorable buying opportunities [5] - VGM Score combines the three styles to highlight stocks with the best overall potential [6] Zacks Rank and Performance - The Zacks Rank is a proprietary model that uses earnings estimate revisions to guide investment decisions [7] - Stocks rated 1 (Strong Buy) have historically delivered an average annual return of +23.93% since 1988, significantly outperforming the S&P 500 [8] - Investors are encouraged to focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal returns [10] Company Spotlight: Cardinal Health (CAH) - Cardinal Health is a major player in healthcare services, serving nearly 90% of U.S. hospitals and managing over 43,000 pharmaceutical shipments daily [12] - The company operates in various segments, including Pharmaceutical & Specialty Solutions and Global Medical Products & Distribution [12] - Cardinal Health holds a Zacks Rank of 2 (Buy) and a VGM Score of A, indicating strong growth potential [13] - The company is projected to achieve year-over-year earnings growth of 18.9% for the current fiscal year, with upward revisions in earnings estimates [13][14]

Core Insights - Zacks Premium provides various tools for investors to enhance their stock market strategies, including daily updates, research reports, and stock screens [1][2] Company Overview - Cardinal Health is a leading global healthcare services and products provider, serving nearly 90% of U.S. hospitals and managing over 43,000 pharmaceutical shipments daily [11] - The company operates in multiple segments, including Pharmaceutical & Specialty Solutions and Global Medical Products & Distribution, and offers a wide range of medical and surgical products [11] Investment Ratings - Cardinal Health holds a 2 (Buy) rating on the Zacks Rank, indicating strong potential for investment [12] - The company has a VGM Score of A, suggesting it is an attractive option for investors [12] Growth Potential - Cardinal Health is projected to achieve a year-over-year earnings growth of 14.3% for the current fiscal year, supported by upward revisions in earnings estimates from analysts [12] - The Zacks Consensus Estimate for Cardinal Health's earnings has increased by $0.21 to $9.42 per share [12] Performance Metrics - Cardinal Health has demonstrated an average earnings surprise of +9.2%, indicating a history of exceeding earnings expectations [12] - The combination of a solid Zacks Rank and high Growth and VGM Style Scores positions Cardinal Health as a strong candidate for investors [13]

Group 1 - Cardinal Health Inc. reported third-quarter 2025 adjusted EPS of $2.35, a 13% increase year over year, surpassing the consensus estimate of $2.17 [1] - Sales remained flat at $54.9 billion, missing the consensus of $55.35 billion, while adjusted operating earnings increased by 21% to $807 million [1] - The Pharmaceutical and Specialty Solutions segment's sales were unchanged at $50.6 billion [1] Group 2 - Revenue for the Global Medical Products and Distribution (GMPD) segment rose by 2% to $3.2 billion, driven by volume growth from existing customers [2] - Segment profit increased by 14% to $662 million in the third quarter, supported by brand and specialty products, MSO platforms, and positive generics program performance [6] - The company raised its fiscal year 2025 adjusted EPS guidance from $7.85-$8.00 to $8.05-$8.15, compared to the consensus of $7.96 [3] Group 3 - Cardinal Health anticipates double-digit non-GAAP EPS growth in fiscal 2026 despite evolving macroeconomic conditions [4] - The outlook for the Pharmaceutical and Specialty Solutions segment profit was increased to 11.5% to 12.5% growth, up from a previous range of 10% to 12% [6] - The company expects GMPD segment profit to be consistent with fiscal 2025 segment profit amid macro uncertainty [6] Group 4 - CAH stock is trading 2.30% higher at $144.53 [5] - The company plans to discuss its fiscal 2026 and beyond expectations at its upcoming Investor Day on June 12 [6]