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Greenville Center to Boost CAH Stock's at-Home Solution Business

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Cardinal Health (CAH - Free Report) recently announced the opening of a new distribution center in Greenville, SC. The distribution center is dedicated solely to the company’s at-Home Solutions business, which is also expected to add roughly 200 jobs to the region over time.

Cardinal Health’s at-Home Solutions is a leading supplier of medical supplies for home healthcare, supporting a significant number of customers countrywide in meeting their supply needs, including individuals with serious or chronic illnesses.

The opening of the new distribution center is likely to provide a boost to the company’s at-Home Solutions business and generate additional revenues to support the growing market for at-home solutions.

More on the New Distribution Centre & Its Benefit to CAH

Greenville is well-known for having a robust manufacturing and distribution sector, which provides the specially trained labor needed to support the operations of this plant. This 350,000-square-foot distribution center is the largest facility that the company has ever built from the ground up and is the one that supports Cardinal Health’s at-Home Solutions division.

Cardinal Health’s at-Home Solutions will likely benefit from the presence of its center in Greenville since the region's focus on innovation makes it easy for the company to support its essential services in the expanding healthcare industry. Using the newest automation, robotics, and artificial intelligence technologies, local warehouse workers are likely to deliver around 8,000 packages every day straight to patients' homes. Products including continuous glucose monitors, ostomy and incontinence equipment, breast pumps, enteral feeding pumps and more are included in the package.

There is a tremendous growth opportunity for at-Home solutions as healthcare continues to shift to the home. Per a report by Fortune Business Insights, U.S. home healthcare is projected to grow from more than $100 billion in 2024 to $176.3 billion by 2032. While several factors contribute to this growth, the main cause is America's aging population and the increasing prevalence of chronic conditions. CAH’s expansion into Greenville allows the company to continue to deliver on its promises to customers and their patients while creating a resilient supply chain to support sustained growth.

CAH’s Notable Developments

In August, CAH announced its plan to open a new state-of-the-art distribution center in Walton Hills, OH, to support its medical products and distribution business in the United States. This new center is likely to integrate cutting-edge technology and automation, enhancing efficiency, storage capacity and the overall quality of service.

Per Cardinal Health, the expansion of its distribution network in Northeast Ohio reflects the company’s commitment to improving its operational capabilities and meeting the growing needs of the healthcare industry. The new facility will not only streamline workflows but also improve safety for employees, reduce delivery times and increase the storage capacity essential for handling an expanding inventory.

CAH’s Share Price Performance

In the past six months, CAH’s shares have gained 11.8% compared with the industry’s 3.4% growth. The S&P 500 has increased 18.4% in the same time frame.

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CAH’s Zacks Rank & Stocks to Consider

CAH presently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader medical space are Universal Health Service (UHS - Free Report) , Quest Diagnostics (DGX - Free Report) and ABM Industries (ABM - Free Report) . While Universal Health Service sports a Zacks Rank #1 (Strong Buy), Quest Diagnostics and ABM Industries carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Universal Health Service has an estimated long-term growth rate of 19%. UHS’ earnings surpassed estimates in each of the trailing four quarters, with the average being 14.58%.

Universal Health Service has gained 56.1% compared with the industry's 48.1% rise so far this year.

Quest Diagnostics has an estimated long-term growth rate of 6.20%. DGX’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 3.31%.

Quest Diagnostics shares have gained 13.9% so far this year compared with the industry’s 17.9% rise.

ABM Industries’ earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 7.34%.

ABM's shares have risen 27.4% so far this year compared with the industry’s 17% growth.

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