Cardinal Health CAH recently launched the Kendall SCD SmartFlow Compression System in the United States. The system is the next generation of the Kendall Compression Series, offering an enhanced clinician and patient experience.

Kendall SCD SmartFlow Compression System is designed to help prevent venous thromboembolism events, enhance blood circulation and treat pain and swelling related to venous stasis.

Likely Trend of CAH Stock Following the News

Following the announcement, shares of the company moved moved 2.8% north to $123.42 at yesterday’s closing. In the year-to-date period, CAH shares have gained 22.4% compared with the industry’s 3.6% growth. The S&P 500 increased 24.5% in the same time frame.

Meanwhile, CAH currently has a market capitalization of $29.1 billion. In the last reported quarter, CAH delivered an earnings surprise of 14.6%.

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More on CAH’s Kendall SCD SmartFlow Compression System

Venous stasis is a condition where blood pools in the veins, often in the legs, and can lead to chronic venous insufficiency and ulcers.

The Kendall SCD SmartFlow Compression System moves more blood per hour than uniform compression by utilizing Vascular Refill Detection (VRD) technology in conjunction with a sequential, gradient, and circumferential sleeve design. The VRD technology helps patients obtain more compression cycles over time and eventually reduces stasis by tailoring and adjusting compression cycles to each patient's specific vascular refill time. While the gradient pressure pattern optimizes blood flow, the circumferential sleeve design permits therapy to be administered regardless of sleeve and tubing position.

Other clinical advantages and features of VRD technology include the exclusive Patient Sensing Technology, which automatically determines whether compression therapy is being administered and will sound an alert if the system fails to identify a patient present or the proper application of the sleeves on the patient's legs.

CAH’s Kendall SCD SmartFlow Compression System is now available for health systems in the United States and is likely to be offered internationally in early 2025.

CAH’s Recent Notable Developments

This month, CAH  announced that it had entered into definitive agreements to acquire two companies. CAH is set to acquire a majority stake in GI Alliance (“GIA”) and Advanced Diabetes Supply Group (“ADSG”). GIA is the country's leading gastroenterology management services organization, a combination of GIA physician owners and funds managed by Apollo affiliates. ADSG is one of the country's leading diabetic medical supplies providers.

Also, this month, CAH reported its first-quarter fiscal 2025 adjusted earnings per share (EPS) of $1.88. The bottom line also improved 9.3% year over year. The company raised its fiscal 2025 earnings guidance. The company anticipates adjusted EPS between $7.75 and $7.90, up from the previous guidance of $7.55-$7.70. Revenues from the Medical segment are estimated to grow in the range of 3-5%.

Favorable Industry Prospects for CAH

Per a report by Future Market Insights, the global venous ulcer treatment market size was valued at $2.96 billion in 2023 and is expected to reach more than $7.61 billion at a CAGR of 6.5% from 2024 to 2033.

The venous disease treatment market is experiencing significant growth, driven by an increasing prevalence of venous disorders such as varicose veins, chronic venous insufficiency, and deep vein thrombosis. Factors such as the aging population, sedentary lifestyles, and rising awareness of venous health are propelling demand for effective treatment options.

CAH’s Zacks Rank & Other Stocks to Consider

CAH carries a Zacks Rank #2 (Buy) at present.

Some other top-ranked stocks from the medical industry are Masimo MASI, AngioDynamics ANGO and Globus Medical GMED.

Masimo, sporting a Zacks Rank #1 (Strong Buy) at present, has an estimated growth rate of 10.4% for 2025. You can see the complete list of today’s Zacks #1 Rank stocks here.

MASI’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 17.10%. Masimo’s shares have risen 37.2% year to date compared with the industry’s 6.7% growth.

AngioDynamics, carrying a Zacks Rank #2 at present, has an estimated growth rate of 38.2% for 2025. ANGO’s earnings surpassed estimates in three of the trailing four quarters and missed once, delivering an average surprise of 31.71%.

AngioDynamics’ shares have lost 8.9% year to date against the industry’s 6.7% growth.

Globus Medical, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 12.7%. GMED’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 12.1%. Its shares have risen 56.5% year to date compared with the industry’s 6.7% growth.

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