This article is for education purposes only, and not to be taken as advice to buy/sell. Please do your own due diligence before committing to any trade/investment.
The US stock market continues to rise, and that has got many traders cheering.
However, I think that it’s time to be a little more defensive by looking at stocks in the traditionally defensive sectors, such as Healthcare.
So, shall we jump in and analyze this Healthcare stock – Cardinal Health?
Brief History of Cardinal Health
Did you know that Cardinal Health was founded as a food wholesaler back in 1971?
It pivoted into a pharmaceutical company shortly and began acquiring companies to begin selling drugs as a wholesaler.
Business was brisk and the company got listed in 1983.
Through more acquisitions, Cardinal Health evolved into the company it is today, providing customized healthcare solutions, pharmacies, ambulatory surgery centers, clinical laboratories, and more.
Does its current financial health mirror reflect at least a slice of its glorious history?
Let’s find out.
Business Model and Financials
Shall we pay closer attention to Cardinal Health’s total revenue (in blue) and net income (in yellow)?
Cardinal Health’s total revenue has been topping the charts year after year! It has been growing at least 5% every year from 2017 to 2022.
Can the same be said of its net income?
Its net income has been suffering wild swings from billions in dollars in profit to $769m in losses.
Is this erratic performance a cause for concern?
A look at its price chart will reveal the answer.
Technical Analysis on Cardinal Health (NYSE: CAH)
A quick glance and you can tell that the price chart of Cardinal Health is in a mighty uptrend.
There’s no need to plot your trendlines or put on your moving averages.
All you need to do is to compare the number of blue (solid and outlined) candles to the number of red (solid and outlined) candles.
Moreover, there are 2 main indicators on the chart that are helpful in telling you if the time to position trade Cardinal Health’s shares is here.
Want to know?
They are the red/green arrow and Trend Impulse Factor indicator.
Because this stock is in an uptrend, you’ll want to be looking for buying opportunities.
You’ll want to see a green arrow appear above its latest candle, and the bar of its Trend Impulse Factor indicator dark green in color.
On the chart of Cardinal Health, you can see a green arrow below its latest candle.
However, the bar of its Trend Impulse Factor isn’t dark green yet.
This means that although its share price has been rising, it’s not ripe for a position trading opportunity just yet.
Cardinal Health has enjoyed great success in its early years.
Though its net income fluctuates greatly, its total revenue has been growing steadily.
Besides, its share price has been rising!
However, the time to buy its shares isn’t here yet because the 2 main indicators aren’t in agreement just yet. Give it some time and a position trading opportunity could present itself.
Both the arrow and Trend Impulse Factor indicator have been tested and proven. They form the TradersGPS (TGPS) system to help you decipher if a stock is ripe for a position trade. You won’t have to feel in the dark and make wild guesses.
If you’re struggling to make money from the market, just do this ONE thing in 2023:
If you’re like most people, you probably think that building a profitable side income stream from the stock market is something that is extremely difficult to achieve, and time-consuming as well.
And you probably know that one friend or relative who has lost a lot of hard-earned money to the market despite being ‘experienced’.
And especially since 2022 was a time when we saw many people in the red, bag-holding 20-80% losses…
It’s understandable to see why most people have such a grudge towards the idea of profiting from the market.
But what if I told you that amongst the many skills required to be profitable in trading…
There is one simple skill that will never make you feel that making money in the stock market is difficult ever again?
A skill that, if mastered, can dramatically increase your chances of success in the stock market.
I’m talking about the skill of identifying the right strong stocks.
If you have heard of this before but still do not have it figured out yet, let today be the day you get it right.
You see, the #1 problem with most ‘experienced’ traders who just can’t seem to make money consistently from the market despite having consumed tons of learning resources & materials is not because there is a problem with their strategies.
It’s because unbeknownst to them, they are constantly buying the WRONG stocks.
Stocks that have very bad set-ups, price movement, andin general just a low probability of moving in the direction you wish for.
In fact, this process of picking the right stocks is a crucial step that most people don’t even think about.
Ask yourself this, what is your current process for knowing what stocks to buy?
Companies that you like such as TSLA, META, AAPL etc..?
Stocks that your friends tell you to buy?
Stocks that you read about in financial news, blogs or Youtube videos?
Or even stocks that you spend hours reading up their financial reports and doing fundamental analysis?
If you have done any one of the above, you are making a dangerous mistake and that has to change.
Knowing how to pick strong stocks with the highest profit potential using a proper proven strategy is half the battle won.
It instantly eliminates any potential ‘bad characteristics’ of the stock and significantly increases your chances of being right in the trade.
Once you know how to pick strong, potential stocks, whatever comes after (knowing when to buy or sell) becomes a breeze and you can start expecting to see real, consistent results.
That’s how exactly I was able to still execute 20-40% and higher trades last year when the entire market was down.
So if you think profitable trading is difficult, think again.
I’ve trained thousands of students who started off with complete 0 experience and whose portfolio results are now lightyears ahead of their peers who started learning years before them.
That’s the power of mastering this very simple skill of identifying the right strong stocks.
It literally gives you the weapon to be able to profit in all sorts of market conditions, because opportunities are ALWAYS in the market. It’s all about knowing how to find them!
I hope you’ve learnt this very important lesson today, but more importantly, take action in pursuing the mastery of this skill.
I have an upcoming free LIVE training demonstrating my exact process on how I find strong stocks in less than 15 minutes using a very simple strategy.
What I will be revealing is a tested and proven counter-intuitive approach that you’ve probably never seen before, and it’s something you can apply almost immediately.
So if you’re excited to cut through the B.S and master the intricate skill of profitable trading…
P.S You can also get to ask me any stocks you are currently thinking of buying and I’ll show you if it’s a strong stock and whether the odds are stacked in your favour or not!