We added a new Bullpen name during Friday's monthly meeting, and it has minimal economic sensitivity and faces little to no risk of AI disruption. This is Cardinal Health, a company that is the backbone of the American healthcare industry. The Bullpen is our watchlist of stocks we want to consider buying for Jim Cramer's Charitable Trust, the portfolio of about 30 names managed by CNBC Investing Club. Cardinal Health plays an important role in the healthcare supply chain by supplying and distributing medications and medical products to hospitals, retail pharmacies and clinics. It purchases 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. Provides healthcare 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 major long-term tailwind for Cardinal Health is the aging of the U.S. population. Over the past 30 years, there has been a steady increase in the number of Americans over the age of 65. As Cardinal Health likes to point out, when you're over 65, you have a greater than 50% chance of taking four or more pharmaceuticals. If you're over 65, there's a factor of five times that of under 50. Cardinal believes there will be more Americans over 65 each year for the next three decades. This is an important long-term tailwind for your business that won't change with what's happening in the broader economy. It is an incredibly durable cylinder head economically. Is there an AI threat here? That is the question we have to ask ourselves every time we buy or consider buying something. Cardinal Health stock sold off sharply on Feb. 12 along with logistics and transportation stocks after a small company announced a new tool that aims to reduce inefficiencies in transportation. It created concerns that drug distribution could lose some pricing power. This was a classic shoot (sell) first, ask questions later and the stock quickly recouped those losses. The market realized that it was wrong. AI poses risks to the business models of many companies, but will also create significant opportunities for others. Barclays analysts argued that if wholesalers became more efficient in their distribution operations, it would be positive for the group, with cost savings for distributors. CAH YTD mountain Cardinal Health YTD Sure, Cardinal Health stock has been a big winner over the past 12 months and has gained about 10% so far this year. But it still only trades at 21 times calendar year 2026 earnings estimates. That may seem expensive relative to its history, but it has rerated due to its consistent double-digit earnings per share (EPS) percentage growth. By the way, it's cheaper on a price-to-earnings (P/E) basis compared to Danaher, which we finally sold on Thursday after a few disappointing years. (See here for a complete list of Jim Cramer's Charitable Trust holdings.) 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 fund'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 INVESTMENT 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 THE RECEIPT OF ANY INFORMATION PROVIDED IN RELATION TO THE INVESTMENT CLUB. NO SPECIFIC RESULTS OR BENEFITS ARE GUARANTEED.
