/Cencora%20Inc_%20HQ-by%20JHVEPhoto%20via%20iStock.jpg)
Conshohocken, Pennsylvania-based Cencora, Inc. (COR) is a pharmaceutical sourcing and distribution company. With a market cap of $46.9 billion, Cencora operates through the U.S. Healthcare Solutions and International Healthcare Solutions segments, providing pharmaceutical supplies, healthcare products, and services to various healthcare providers.
Companies worth $10 billion or more are generally described as "large-cap stocks," Cencora fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the medical distribution industry. It is one of the largest pharmaceutical wholesalers in the US.
Cencora has slipped 4.7% from its 52-week high of $247.66, which is also its all-time high achieved on Aug. 2. COR has observed marginal gains over the past three months, lagging behind the Health Care Select Sector SPDR Fund’s (XLV) 5.9% gains during the same time frame.
Over the longer term, Cencora stock has outperformed XLV. COR gained 33.1% over the past 52 weeks and 15.2% in 2024, outpacing XLV’s 17.4% gains over the past year and 13.7% returns on a YTD basis.
To confirm the bullish trend, COR has consistently traded above its 200-day moving average and mostly above its 50-day moving average with some fluctuations over the past year.
Cencora’s stock surged 3% after the release of its impressive Q3 earnings on Jul. 31 and maintained an upward trajectory in the next two trading sessions. Its revenue grew 10.9% year-over-year growth to $74.2 billion. Although its net income saw a modest growth of 1.7%, totaling $487.6 million, its adjusted EPS grew by 14.4% annually to $3.34, surpassing the consensus estimates by 5%.
Additionally, Cencora repurchased shares worth $986.4 million during the first three quarters of fiscal 2024, demonstrating its commitment to shareholders.
Cencora’s competitor, McKesson Corporation (MCK), has underperformed COR. MCK has gained 21.1% over the past 52 weeks and 10% in 2024.
Among the 15 analysts covering the COR stock, the consensus rating is a “Strong Buy.” The mean price target of $264.57 represents a potential upside of 11.9% from current price levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
