We recently published a list of 8 Stocks on Jim Cramer’s Radar Recently. In this article, we are going to take a look at where Cardinal Health, Inc. (NYSE:CAH) stands against other stocks that Jim Cramer discussed recently.

On Wednesday’s episode of Mad Money, Jim Cramer reviewed the recent developments affecting drug distribution companies and laid out why he is turning cautious on the group. He pointed out that stocks of major drug distributors have retreated from their all-time highs.

“Most of the time, that’s because of vague, amorphous concerns that some type of regulatory crackdown will force them out of business or, at the very least, make them a lot less profitable.”

READ ALSO Jim Cramer Put These 8 Stocks Under a Microscope Recently and Jim Cramer Commented on These 6 Natural Gas Players

Cramer referenced the executive order signed by the President last week aimed at lowering drug prices, which triggered a sell-off across the drug distribution sector. He explained that the order would effectively require pharmaceutical companies to offer the U.S. government drug prices that match the lowest rates charged in other advanced economies. Cramer said the market’s fear is straightforward: if drugmakers are forced to cut prices for their government customers, then drug distributors could see their margins shrink.

“The bottom line: No matter how well the drug distributors have been doing, I do not want to stick my neck out for an industry that now seems to be hated by both the Democrats and the Republicans. It seems like the only thing they agree on, doesn’t it? There are so many potential winners in this market, I say, why take the risk?”

Our Methodology

For this article, we compiled a list of 8 stocks that were discussed by Jim Cramer during the episodes of Mad Money aired on May 14. We listed the stocks in the order that Cramer mentioned them. We also provided hedge fund sentiment for each stock as of the fourth quarter of 2024, which was taken from Insider Monkey’s database of over 1,000 hedge funds.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).Jim Cramer On Cardinal Health (CAH) "They Are Impressive"

A senior physician in a modern healthcare institution administering medication to a patient.

Cardinal Health, Inc. (NYSE:CAH)

Number of Hedge Fund Holders: 63

Cramer recommended buying Cardinal Health, Inc. (NYSE:CAH) because of its “value-added services”.

Story Continues

“These stocks, namely Cardinal Health, Cencora, and McKesson, are seemingly perpetual residents on the new high list. Over the long haul, they’re some of the best performers out there, and they’ve done great this year, as is pretty much always the case. And yet, doesn’t it always feel like the drug distributors are just one bad day away from falling apart… Let’s not forget that the drug distributors are making fortunes right now. Cardinal Health turned in an excellent set of numbers two weeks ago with double-digit earnings growth. Management put through a big boost in their full-year earnings forecast. Cardinal stock jumped 3% in response, climbing from $141 to $145, and it kept running for really a week after that, eventually setting at an all-time high of $154 just last Thursday. What a fabulous move…

Cardinal Health (NYSE:CAH) supplies healthcare products and services across different care environments. It offers pharmaceuticals, medical equipment, and support solutions. The company also handles logistics, pharmacy operations, and distribution using technology across the healthcare sector.

Overall, CAH ranks 4th on our list of stocks that Jim Cramer discussed recently. While we acknowledge the potential of CAH as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than CAH but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.

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