During the September 8 episode of Mad Money, Jim Cramer compared Medline Inc. (NASDAQ:MDLN) to Arizona Cardinals rookie running back Jeremiyah Love and highlighted how temporary setbacks create a unique entry window for patient investors. He remarked:
For my third running back, let’s bring in some new blood, please. I’m bringing in Medline, the largest IPO of 2025. This is a distributor of medical-surgical products. I know it sounds like Becton, Dickinson. It’s a growing business, selling its home medical devices, consumables. Came public last December. After a hot start, it’s cooled off significantly, pulling back from a high of 50 in February to the mid-30s now, only slightly above where it came public. But for those who have patience, I think Medline could be a long-term compounder. It’s a real sleeper.
Hey, NFL analog, how about the Arizona Cardinals rookie running back Jeremiyah Love, the third overall pick in April’s NFL draft? Beyond both being new, I think the analogy holds because both Medline and Love have temporary question marks. Medline’s well off its highs in part thanks to a warehouse fire in June. Love has a great track record at Notre Dame, but now he’s got an ankle injury. I think these are temporary issues for both. Sometimes, it’s best to go off the beaten path. Adam Schefter would love Medline.
A Fresh IPO and a Sleeper Compounder
Cramer’s mention of Medline Inc. brings a fresh face to the portfolio lineup. As the largest public market debut of late 2025, raising nearly $6.3 billion, the company has quickly established its massive scale as a premier distributor of medical-surgical products, consumables, and home medical devices. The company’s core financials back up its growth profile. Medline reported $7.7 billion in second-quarter net sales, an 11.6% year-over-year increase. Furthermore, 2026 adjusted EBITDA increased 13.4% to $1.06 billion, compared to $935 million in the second quarter of 2025, driven by higher net sales and net IEEPA tariff refund benefits. The management raised its full-year organic sales growth outlook to 9.0% to 10.0% while slightly reducing its adjusted EBITDA outlook to $3.3 billion to $3.4 billion to account for higher-than-expected inflationary pressure, remediation efforts, and retail channel softness.
Following an initial market surge after its December public debut that pushed Medline shares to a high near $50, the stock has experienced a cooling-off period, pulling back into the mid-30s. For patient long-term investors willing to look past near-term noise, the valuation compression (21x forward earnings) could offer a compelling entry point for a durable compounder.
Operational Hurdles and Supply Chain Pressures
Investing in a newly public enterprise always comes with unique execution challenges. For Medline Inc., recent price softness has been compounded by temporary headwinds, most notably a facility warehouse fire that disrupted logistics and distribution networks. Additionally, supply chain bottlenecks and rising operating costs can put short-term pressure on profit margins and create unsteady trading sentiment for retail investors.
Hedge Fund Ownership and Market Sentiment
According to Insider Monkey’s data, 52 hedge funds held a stake in Medline Inc. during Q2, compared to 65 in the prior quarter, while short interest stands at 8.59%. This sequential dip in fund backing, paired with the current short position, may suggest that some professional managers are adopting a wait-and-see approach as the newly public distributor works through its early growing pains.
Medline Inc. represents the type of overlooked, off-the-beaten-path opportunity that rewards long-term discipline. While it requires patience to navigate its post-IPO growing pains, its role in healthcare infrastructure makes it an intriguing addition to a diversified growth strategy.
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