Stock of the Day

July 9, 2020

Cencora (COR)

$241.47
-$1.99 (-0.8%)
Market Cap: $47.21B

About Cencora

Cencora, Inc. sources and distributes pharmaceutical products. The company's U.S. Healthcare Solutions segment distributes pharmaceuticals, over-the-counter healthcare products, home healthcare supplies and equipment, and related services to acute care hospitals and health systems, independent and chain retail pharmacies, mail order pharmacies, medical clinics, long-term care and alternate site pharmacies, and other customers; provides pharmacy management, staffing, and other consulting services; supply management software to retail and institutional healthcare providers; packaging solutions to various institutional and retail healthcare providers; clinical trial support, product post-approval, and commercialization support services; data analytics, outcomes research, and additional services for biotechnology and pharmaceutical manufacturers; pharmaceuticals, vaccines, parasiticides, diagnostics, micro feed ingredients, and other products to the companion animal and production animal markets; and sales force services to manufacturers. This segment also distributes plasma and other blood products, injectable pharmaceuticals, vaccines, and other specialty products; and provides other services to physicians who specialize in various disease states, such as oncology, as well as to other healthcare providers, including hospitals and dialysis clinics. Its International Healthcare Solutions segment offers international pharmaceutical wholesale and related service, and global commercialization services; distributes pharmaceuticals, other healthcare products, and related services to pharmacies, doctors, health centers, and hospitals primarily in Europe; and provides specialty transportation and logistics services for the biopharmaceutical industry. The company was formerly known as AmerisourceBergen Corporation and changed its name to Cencora, Inc. in August 2023. Cencora, Inc. was incorporated in 2001 and is headquartered in Conshohocken, Pennsylvania.

Cencora Bull Case

Here are some ways that investors could benefit from investing in Cencora, Inc.:

  • Recent analyst upgrades have increased the target price for Cencora, Inc. to as high as $301.00, indicating strong potential for stock appreciation.
  • The company has a solid payout ratio of 31.29%, suggesting a commitment to returning value to shareholders while still retaining earnings for growth.
  • Cencora, Inc. has received a consensus rating of "Moderate Buy" from analysts, with ten analysts assigning a buy rating, reflecting positive market sentiment.
  • The stock price recently reached $245.37, showing a 1.6% increase, which may attract investors looking for upward momentum.
  • With a market capitalization of $47.58 billion, Cencora, Inc. is positioned as a significant player in the pharmaceutical distribution sector, providing stability and growth potential.

Cencora Bear Case

Investors should be bearish about investing in Cencora, Inc. for these reasons:

  • The company's high price-to-earnings (P/E) ratio of 34.90 may indicate that the stock is overvalued compared to its earnings, which could deter value-focused investors.
  • Cencora, Inc. has a relatively low quick ratio of 0.54, suggesting potential liquidity issues, as it may not have enough short-term assets to cover its short-term liabilities.
  • Insider selling activity, including a significant sale by the chairman, could signal a lack of confidence in the company's short-term prospects.
  • The stock has a beta of 0.49, indicating lower volatility compared to the market, which may not appeal to investors seeking high-risk, high-reward opportunities.
  • Despite recent price increases, the stock has a 52-week high of $262.26, which may suggest limited upside potential if it approaches this resistance level again.

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