We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Shares of AmerisourceBergen Corporation scaled a new 52-week high of $147.51 on Mar 4 before closing the session marginally lower at $147.30.
Over the past year, this Zacks Rank #2 (Hold) stock has gained 37% compared with 12.2% growth of the industry and 13.4% rise of the S&P 500 composite.
Over the past five years, the company registered earnings growth of 11% compared with the industry’s 12.8% rise. The company’s long-term expected growth rate of 8.2% compares with the industry’s growth projection of 12.5%. AmerisourceBergen’s earnings surpassed estimates in three of the trailing four quarters and missed the same in the other one, the average surprise being 2.3%.
Image Source: Zacks Investment Research
AmerisourceBergen is witnessing an upward trend in its stock price, prompted by its robust World Courier business. A solid first-quarter fiscal 2022 performance, along with strength in its U.S. healthcare solutions business, is expected to contribute further. However, stiff competition and generic deflation persist.
Let’s delve deeper.
Key Growth Drivers
Strength in World Courier Business: Investors are upbeat about AmerisourceBergen’s World Courier’s solid foothold in global specialty logistics services, which has been driving compelling volume growth and overall performance for the company. Going forward, World Courier will continue to design and deploy patient-centric and forward-thinking transport services in new areas like in-home clinical trials, making treatment in patients’ homes possible in virtually every therapeutic area.
Strength in U.S. Healthcare Solutions Business: Investors are optimistic about the segment deriving benefits from increasing volume and an expanding customer base. Strong organic growth rates in the U.S. pharmaceutical market, improving patient access to medical care, enhanced economic conditions and population demographics are likely to favor the segment in the quarters to come.
In fiscal first-quarter 2022, revenues at this segment reflected a year-over-year uptick on the back of an increase in specialty product sales, coupled with overall market growth and strength in MWI Animal Health business.
Strong Q1 Results: AmerisourceBergen’s robust first-quarter fiscal 2022 results buoy optimism. The company’s robust segmental performance in the quarter is encouraging. A strong fiscal 2022 outlook and solid organic revenue growth continue to drive the company’s performance. The quarterly results highlight sustained solid performance across AmerisourceBergen’s businesses. The company extended its pharmaceutical supply agreement with Express Scripts through 2026. The company is well-positioned to deliver long-term, sustainable growth on the back of its diverse and inclusive teams, and investments in people and culture. Expansion of both margins bodes well.
Downsides
Generic Deflation: Generic deflation has been higher than historic norms for several quarters for AmerisourceBergen, creating a headwind for its business. Generic deflation is still mid-to-high single digits for the company. The company has been impacted by several factors, including accelerated deflation of generic drugs and a lower contribution from generic launches. These trends have intensified the effect of a shift in product mix toward lower-margin, higher-priced specialty and branded drugs, as well as the lack of generic inflation.
Stiff Competition: AmerisourceBergen operates in a highly competitive pharmaceutical distribution and related healthcare services market. The company’s primary competitors are key MedTech players, along with national generic distributors and regional distributors. The company faces additional competition from manufacturers, chain drugstores, specialty distributors, and packaging and healthcare technology companies.
Other Key Picks
A few other top-ranked stocks in the broader medical space include Henry Schein, Inc. (HSIC - Free Report) , Allscripts Healthcare Solutions, Inc. (MDRX - Free Report) and AMN Healthcare Services, Inc. (AMN - Free Report) .
Henry Schein, flaunting a Zacks Rank #1 (Strong Buy) at present, has an estimated long-term growth rate of 11.8%. HSIC’s earnings surpassed estimates in the trailing four quarters, the average beat being 25.5%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Henry Schein has gained 34.3% compared with the industry’s 12.2% growth over the past year.
Allscripts has an estimated long-term growth rate of 16.3%. MDRX’s earnings surpassed estimates in the trailing four quarters, the average beat being 64.8%. It currently carries a Zacks Rank #1.
Allscripts has gained 41.2% against the industry’s 46.8% fall over the past year.
AMN Healthcare has an estimated long-term growth rate of 16.2%. AMN’s earnings surpassed estimates in the trailing four quarters, the average beat being 20%. It currently sports a Zacks Rank #1.
AMN Healthcare has gained 39.3% against the industry’s 54.9% fall over the past year.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
AmerisourceBergen (ABC) Hits 52-Week High: What's Aiding It?
Shares of AmerisourceBergen Corporation scaled a new 52-week high of $147.51 on Mar 4 before closing the session marginally lower at $147.30.
Over the past year, this Zacks Rank #2 (Hold) stock has gained 37% compared with 12.2% growth of the industry and 13.4% rise of the S&P 500 composite.
Over the past five years, the company registered earnings growth of 11% compared with the industry’s 12.8% rise. The company’s long-term expected growth rate of 8.2% compares with the industry’s growth projection of 12.5%. AmerisourceBergen’s earnings surpassed estimates in three of the trailing four quarters and missed the same in the other one, the average surprise being 2.3%.
Image Source: Zacks Investment Research
AmerisourceBergen is witnessing an upward trend in its stock price, prompted by its robust World Courier business. A solid first-quarter fiscal 2022 performance, along with strength in its U.S. healthcare solutions business, is expected to contribute further. However, stiff competition and generic deflation persist.
Let’s delve deeper.
Key Growth Drivers
Strength in World Courier Business: Investors are upbeat about AmerisourceBergen’s World Courier’s solid foothold in global specialty logistics services, which has been driving compelling volume growth and overall performance for the company. Going forward, World Courier will continue to design and deploy patient-centric and forward-thinking transport services in new areas like in-home clinical trials, making treatment in patients’ homes possible in virtually every therapeutic area.
Strength in U.S. Healthcare Solutions Business: Investors are optimistic about the segment deriving benefits from increasing volume and an expanding customer base. Strong organic growth rates in the U.S. pharmaceutical market, improving patient access to medical care, enhanced economic conditions and population demographics are likely to favor the segment in the quarters to come.
In fiscal first-quarter 2022, revenues at this segment reflected a year-over-year uptick on the back of an increase in specialty product sales, coupled with overall market growth and strength in MWI Animal Health business.
Strong Q1 Results: AmerisourceBergen’s robust first-quarter fiscal 2022 results buoy optimism. The company’s robust segmental performance in the quarter is encouraging. A strong fiscal 2022 outlook and solid organic revenue growth continue to drive the company’s performance. The quarterly results highlight sustained solid performance across AmerisourceBergen’s businesses. The company extended its pharmaceutical supply agreement with Express Scripts through 2026. The company is well-positioned to deliver long-term, sustainable growth on the back of its diverse and inclusive teams, and investments in people and culture. Expansion of both margins bodes well.
Downsides
Generic Deflation: Generic deflation has been higher than historic norms for several quarters for AmerisourceBergen, creating a headwind for its business. Generic deflation is still mid-to-high single digits for the company. The company has been impacted by several factors, including accelerated deflation of generic drugs and a lower contribution from generic launches. These trends have intensified the effect of a shift in product mix toward lower-margin, higher-priced specialty and branded drugs, as well as the lack of generic inflation.
Stiff Competition: AmerisourceBergen operates in a highly competitive pharmaceutical distribution and related healthcare services market. The company’s primary competitors are key MedTech players, along with national generic distributors and regional distributors. The company faces additional competition from manufacturers, chain drugstores, specialty distributors, and packaging and healthcare technology companies.
Other Key Picks
A few other top-ranked stocks in the broader medical space include Henry Schein, Inc. (HSIC - Free Report) , Allscripts Healthcare Solutions, Inc. (MDRX - Free Report) and AMN Healthcare Services, Inc. (AMN - Free Report) .
Henry Schein, flaunting a Zacks Rank #1 (Strong Buy) at present, has an estimated long-term growth rate of 11.8%. HSIC’s earnings surpassed estimates in the trailing four quarters, the average beat being 25.5%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Henry Schein has gained 34.3% compared with the industry’s 12.2% growth over the past year.
Allscripts has an estimated long-term growth rate of 16.3%. MDRX’s earnings surpassed estimates in the trailing four quarters, the average beat being 64.8%. It currently carries a Zacks Rank #1.
Allscripts has gained 41.2% against the industry’s 46.8% fall over the past year.
AMN Healthcare has an estimated long-term growth rate of 16.2%. AMN’s earnings surpassed estimates in the trailing four quarters, the average beat being 20%. It currently sports a Zacks Rank #1.
AMN Healthcare has gained 39.3% against the industry’s 54.9% fall over the past year.