Among Health Care Distributors, J.P. Morgan Favors MCK And CAH

Among the distributors, J.P. Morgan said that it favors McKesson Corporation (NYSE: MCK) and Cardinal Health, Inc. (NYSE: CAH).

“We continue to believe that MCK is underappreciated, as the distribution business continues to successfully expand generic penetration and EBIT growth continues to be the highest in the industry,” J.P. Morgan writes.

“The HCIT business is also poised for a rebound as ARRA demand increases and investments made in anticipation lap. At Cardinal, recent acquisitions, including a new foray into China, have positioned the company for longer-term growth while turnaround initiatives continue to drive margin expansion.”

Cardinal Health closed Wednesday at $38.88; McKesson Corporation closed at $72.33.