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Based in Conshohocken, Pennsylvania, Cencora, Inc. (COR) is a healthcare solutions provider with a market cap of $47.4 billion. Operating within the pharmaceutical distribution and healthcare services industry, the company delivers a broad range of products and services to healthcare providers and institutions globally.
Shares of this prescription drug distributor have outperformed the broader market over the past 52 weeks. COR has soared 27.6% during this period, contrasting with the S&P 500 Index's ($SPX) rally of 24.9%. In 2024, COR shares are up 15.2%, slightly lagging behind SPX's 16.2% gain on a YTD basis.
Zooming in further, COR's performance surpasses the Vaneck Pharmaceutical ETF (PPH), which has gained 16.3% over the past 52 weeks. However, the stock lags behind PPH's 18.2% increase on a YTD basis.
Cencora's outperformance over the past year is driven by its high-return specialty pharmaceuticals and efficient capital-light operations alongside advanced logistics that enhance profitability. Moreover, the stock rose nearly 3% on Jul. 31 due to the company's upward revision of its annual profit forecast, attributed to strong demand for high-priced specialty medicines treating complex diseases like cancer. Additionally, Cencora surpassed Wall Street expectations for Q3 profit and revenue, bolstering investor confidence.
For the current fiscal year, ending in September, analysts expect COR's EPS to grow 13.6% year over year to $13.62 per share. The company's earnings surprise history is promising. It topped the consensus estimates in all of the last four quarters.
The consensus rating among the 15 analysts covering the stock is a “Strong Buy.” That’s based on 11 “Strong Buy” ratings and four “Holds.”
This configuration has remained steady over the past months.
On Aug. 1, Robert W. Baird reiterated an "outperform" rating and boosted their target price on Cencora to $287 – the Street-high price target. This implies a modest potential upside of 21.9% from the current price levels.
The mean price target of $264.07 represents a premium of 12.1% to COR's current levels.
On the date of publication, Sohini Mondal 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.
