A stock market correction takes most stocks down with it. And few breakouts lead to big, sustained gains in such environments. But drug distribution giant AmerisourceBergen looks to resist selling pressure in the stock market indexes as it shows resilience.
ABC stock sports a 98 Composite Rating, earning top honors among its industry peers in Stock Checkup. Its pharmaceuticals and supplies distribution group ranks a solid No. 43 among the 197 groups IBD tracks.
In a sign of leadership in a down market, the relative strength line for AmerisourceBergen has been trending sharply higher.
AmerisourceBergen has earned a spot on the IBD Big Cap 20 and IBD Breakout Stocks Index. ABC stock also made the latest list of new buys by the best mutual funds, joining industry peer McKesson.
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AmerisourceBergen Delivers 2 Quarters Of Accelerating Growth
Headquartered in Pennsylvania, AmerisourceBergen distributes pharmaceuticals and health care products around the world. The company has approximately 42,000 employees across more than 150 global offices. AmerisourceBergen ranks No. 8 on the Fortune 500.
Both AmerisourceBergen and McKesson are giants in the pharmaceuticals and supplies distribution business.
In fiscal 2021 (ended Sept. 30), AmerisourceBergen reported just under $214 billion in sales, including approximately $59 billion in fiscal Q4. Over the last four quarters, McKesson has generated revenue ranging from $59.1 billion to $66.6 billion.
AmerisourceBergen has delivered two straight quarters of accelerating earnings and sales growth.
AmerisourceBergen reports Q1 numbers for fiscal 2022 on Feb. 2 before the open. McKesson reports 2021 Q4 and full year numbers the same day.
ABC Stock Shows Resilience, Reclaims Buy Zone
A look at its weekly chart shows how ABC stock has been trading around its 10-week moving average since January 2021.
Most recently, AmerisourceBergen cleared a 129.64 buy point at the end of December. After rising more than 5%, the stock pulled back as the indexes fell into a correction. But as indicated by its rising RS line and support at its 10-week moving average, AmerisourceBergen has shown resilience.
On Tuesday, ABC stock found the strength and resilience to move back into its buy zone. Be on the lookout for how Wall Street reacts when it reports on Feb. 2. On Wednesday, AmerisourceBergen dipped slightly in low volume, closing the session right around the buy point.
Also look for how McKesson fares when it reports the same day. MCK stock is extended from its most recent breakout and has found support at its 10-week line.
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Follow Matthew Galgani on Twitter at @IBD_MGalgani.
