When the Russell 2000 is up over 20% and the S&amp;P under 10%, &quot;I just own the index&quot; means very different things depending on which index. A chance to explain how market-cap weighting quietly concentrated listeners into a handful of names. Today&#x27;s Stocks &amp; Topics: Cardinal Health, Inc. (CAH), Market Wrap, McDonald&#x27;s Corporation (MCD), Rotation Trade, Oracle Corporation (ORCL), The Index Fund Trap, Barrick Mining Corporation (B), Agnico Eagle Mines Limited (AEM), ImmunityBio, Inc. (IBRX), The Power Grid. Our Sponsors: * Check out Anthropic and use my code Claude.ai/invest for a great deal: https://www.anthropic.com * Check out Chilipad and use my code INVEST for a great deal: https://sleep.me * Check out Chilipad and use my code sleep.me/INVEST for a great deal: https://sleep.me * Check out Plaud AI and use my code INVEST for a great deal: https://plaud.ai * Check out Quince and use my code quince.com/invest for a great deal: https://www.quince.com * Check out Quince and use my code quince.com/invest for a great deal: https://www.quince.com * Check out TruDiagnostic and use my code INVEST20 for a great deal: https://www.trudiagnostic.com Advertising Inquiries: https://redcircle.com/brands

The Index Fund Trap

InvestTalk

# Full Transcript

**Podcast:** InvestTalk

## Participants

- **Luke Guerrero** (KPP Financial)
- **Justin Klein** (KPP Financial)

## Transcript

This is InvestTalk from KPP Financial, helping investors make sense of the markets one day at a time. Here's your host, Luke Guerrero. Good afternoon, fellow investors, and welcome to the Thursday, July 2nd, 2026 edition of InvestTalk.

I'm your host, Luke Guerrero, and I'll be with you over the next 55 minutes or so as we round out the stories for the week, bring you issues that matter, and most importantly, most, that's not a word, most importantly, answer your finance and investment questions before we head off for the long weekend. Now, I've mentioned it earlier in the week. I'm sure Justin mentioned it as well. Tomorrow is a holiday as markets are closed,

so we will be having a best of episode. Another issue I wanted to remind you about is that our newest InvestTalk Wealth webinar, Beyond the Yield, How to Invest for Your Income Needs, was a couple days ago, and if you missed it, it is now available on the InvestTalk YouTube channel, so I encourage you to go check it out. Okay, in just a bit, we'll talk about today's market performance as well as the show topics that I'm bringing to the table. But first, let's tackle this caller question.

Hey, Justin and Luke, wanted to give you guys a call. Over the years, can you please give me your analysis where they're at today? The show, we'll listen to the podcast. Cardinal Health, a name that we do, we used to get pretty frequent calls about, that's ticker CAH,

is actually the number two U.S. pharmaceutical distributor just behind McKesson. They have $56 billion in quarterly revenue from their drug distribution, specialty pharma oncology, and their at-home solutions. And they also have their global medical products distribution. So think your medical and surgical products, your masks, your items that are used in surgery.

Year to date, this name is up about 16.2%. It's done really well over the past three months, up 11.63%. It has, as healthcare has started to rally over the past couple months, done far better than the industry. I mean, the industry is still negative year to date. This thing is outperforming it by 19.3%. Last year, it outperformed it by 27.2%.

It has perennially outperformed the industry coming out of the pandemic. And with the exception of 2024, it's a pretty strong outperformance relative to the S&P 500. Now, it's been a while since it has reported earnings. April 30th, it looks like, was the last time that it reported earnings. But earnings are pretty solid. Gross profits up 18% year over year. Operating earnings up 18% as well.

They beat GAAP, rather non-GAAP EPS, by about 12.6%. That came in as a 35% growth year over year. And top line revenue up 11%. I mean, these are pretty, pretty solid numbers that led to a bunch of analysts raising price targets. It is probably the most consistent beat and raise name over the past couple ye...

The Index Fund Trap

Transcript

Built for investment professionals

Every day you wait, your competitors are finding
edge in conversations you're not hearing.

The Index Fund Trap

Transcript

Built for investment professionals

Every day you wait, your competitors are findingedge in conversations you're not hearing.

Every day you wait, your competitors are finding
edge in conversations you're not hearing.