Wednesday, November 9, 2011

Investopedia: If CareFusion Can Execute, This Is A Major Bargain


Admittedly, it's not hard to create a basket of too-cheap health care stocks, today, and almost every one of these stories has a sizable "but." In the case of CareFusion (NYSE:CFN), though, slimming down that "but" seems relatively manageable. The company still has a ways to go in improving its returns on capital, but CareFusion's market positioning should make solid returns achievable. However, Wall Street presently gives CareFusion little credit.

A Mixed Start to the Year 
For its first fiscal quarter, CareFusion reported that revenue rose 4%. Growth was led by the "Medical Systems" business at 9%, while the "Procedural Solutions" business saw revenue decline 2%. Dispensing technologies, which is part of Medical Systems, saw 16% reported topline growth. Infusion was surprisingly strong at 7%, while respiratory care and specialty disposables were laggards.




Follow this link for the full article:
http://stocks.investopedia.com/stock-analysis/2011/If-CareFusion-Can-Execute-This-Is-A-Major-Bargain-CFN-HSP-BAX-BCR-ICUI-JNJ-BDX1109.aspx

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