We’re adding a stock to our Bullpen; resistant to recessions, AI disruption
HS 27/02/2026
We added a new Bullpen name during Friday’s Monthly Meeting, and it has minimal economic sensitivity and faces little to no artificial intelligence disruption risk. It’s Cardinal Health , a company that is the backbone of the U.S. health-care industry. The Bullpen is our watchlist of stocks that we want to consider buying for Jim Cramer’s Charitable Trust, the portfolio of 30-something names managed by the CNBC Investing Club. Cardinal Health plays a major role in the health-care supply chain by supplying and distributing medicines and medical products to hospitals, retail pharmacies, and clinics. It buys prescription drugs from manufacturers and distributes them to hospitals, retail pharmacies, and clinics. It manufactures and distributes items such as surgical products, examination gloves, and other medical products and supplies. It provides health-care services and solutions, including inventory management and supply chain support. Cardinal Health operates in an industry that is effectively an oligopoly dominated by three players — the other two are McKesson and Cencora . A significant long-term tailwind for Cardinal Health is the aging U.S. population. Over the past 30 years, there has been a consistent increase in the number of Americans over the age of 65. As Cardinal Health likes to point out, when you are over the age of 65, you have a more than 50% chance of taking four or more pharmaceutical products. If you are over 65, there’s a five times factor versus under 50. Cardinal believes there will be more Americans over age 65 every year for the next three-plus decades. That’s a significant long-term tailwind to its business that won’t change with what’s happening to the broader economy. It’s an incredibly economically resistant stock. Is there an AI threat here? That’s the question we have to ask ourselves every time we buy or consider buying something. Shares of Cardinal Health sold off hard on Feb. 12 alongside the logistics and transportation stocks after a small company announced a new tool that aims to reduce freight inefficiencies. It created worries that drug distribution could lose some pricing power. This was a classic shoot (sell) first, ask questions later reaction, and the stock quickly recovered those losses. The market realized it was wrong. AI poses risks to many companies’ business models, but it will also create meaningful opportunities for others. Analysts at Barclays argued that if wholesalers become more efficient in their distribution operations, it would be positive for the group, with the cost savings accrued to the distributors. CAH YTD mountain Cardinal Health YTD Sure, Cardinal Health stock has been a huge winner over the past 12 months and has gained about 10% year to date. But it still only trades at just 21 times calendar year 2026 earnings estimates. That may look expensive relative to its history, but it has re-rated due to its consistent double-digit percentage earnings per share (EPS) growth. By the way, it’s cheaper on a price-to-earnings (P/E) basis versus Danaher , which we finally sold out of on Thursday after a disappointing few years. (See here for a full list of the stocks in Jim Cramer’s Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
