How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.
What if you'd invested in AmerisourceBergen ten years ago? It may not have been easy to hold on to ABC for all that time, but if you did, how much would your investment be worth today?
AmerisourceBergen's Business In-Depth
With that in mind, let's take a look at AmerisourceBergen's main business drivers.
Chesterbrook, PA-based AmerisourceBergen is one of the world’s largest pharmaceutical services companies, which focuses on providing drug distribution and related services to reduce health care costs and improve patient outcomes.
The company reports through two segments – Pharmaceutical Distribution and Other. The Pharmaceutical Distribution business includes the operations of AmerisourceBergen Drug Corporation (ABDC) and AmerisourceBergen Specialty Group (ABSG). The segment services healthcare providers in the pharmaceutical supply channel. The ABSG division provides pharmaceutical distribution and other services mainly to physicians, who specialize in a variety of diseases, especially oncology, and to other health care providers, including dialysis clinics. The ABDC division is involved in the distribution of branded pharma drugs and generic drugs, over-the-counter healthcare products, home healthcare supplies and equipment and related services to a range of healthcare providers.
The “Other” segment consists of AmerisourceBergen Consulting Services (ABCS), World Courier and MWI Veterinary Supply. The ABCS business provides commercialization support services to pharmaceutical and biotech manufacturers.
Segment Realignment Update
It is worth mentioning that AmerisourceBergen made a strategic evaluation of its reporting structure in order to represent its expanded international presence because of the June 2021 buyout of Alliance Healthcare. Consequently, starting from the first quarter of fiscal 2022, the company has realigned its reporting structure under two reportable segments — U.S. Healthcare Solutions and International Healthcare Solutions.
FY21 at a Glance
Total revenue in fiscal 2021 came in at $213.99 billion. The Pharmaceutical Distribution Services contributed to 92.6% of net revenues in fiscal 2021. The Other segment accounted for 7.4% of net revenues.
Bottom Line
While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in AmerisourceBergen ten years ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in September 2012 would be worth $3,804.78, or a 280.48% gain, as of September 1, 2022, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
In comparison, the S&P 500 gained 181.18% and the price of gold went up -0.78% over the same time frame.
Analysts are anticipating more upside for ABC.
Over the past year, AmerisourceBergen outperformed its industry. The company exited the fiscal third quarter on a strong note, wherein both earnings and revenues beat the consensus mark. The company witnessed robust segmental performance in the quarter under review. Expansion at both margins is a positive. 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. A strong fiscal 2022 outlook instills optimism in the stock. A strong solvency position bodes well. AmerisourceBergen’s fiscal third-quarter revenues were better than expected. Yet, AmerisourceBergen continues to face headwinds like conversion of branded drugs and lower price generics. Cut-throat competition in the MedTech space and economic stagnation amid the pandemic remain woes.
The stock has jumped 5.44% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 6 higher, for fiscal 2022; the consensus estimate has moved up as well.
Image: Bigstock
Here's How Much You'd Have If You Invested $1000 in AmerisourceBergen a Decade Ago
How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.
What if you'd invested in AmerisourceBergen ten years ago? It may not have been easy to hold on to ABC for all that time, but if you did, how much would your investment be worth today?
AmerisourceBergen's Business In-Depth
With that in mind, let's take a look at AmerisourceBergen's main business drivers.
Chesterbrook, PA-based AmerisourceBergen is one of the world’s largest pharmaceutical services companies, which focuses on providing drug distribution and related services to reduce health care costs and improve patient outcomes.
The company reports through two segments – Pharmaceutical Distribution and Other. The Pharmaceutical Distribution business includes the operations of AmerisourceBergen Drug Corporation (ABDC) and AmerisourceBergen Specialty Group (ABSG). The segment services healthcare providers in the pharmaceutical supply channel. The ABSG division provides pharmaceutical distribution and other services mainly to physicians, who specialize in a variety of diseases, especially oncology, and to other health care providers, including dialysis clinics. The ABDC division is involved in the distribution of branded pharma drugs and generic drugs, over-the-counter healthcare products, home healthcare supplies and equipment and related services to a range of healthcare providers.
The “Other” segment consists of AmerisourceBergen Consulting Services (ABCS), World Courier and MWI Veterinary Supply. The ABCS business provides commercialization support services to pharmaceutical and biotech manufacturers.
Segment Realignment Update
It is worth mentioning that AmerisourceBergen made a strategic evaluation of its reporting structure in order to represent its expanded international presence because of the June 2021 buyout of Alliance Healthcare. Consequently, starting from the first quarter of fiscal 2022, the company has realigned its reporting structure under two reportable segments — U.S. Healthcare Solutions and International Healthcare Solutions.
FY21 at a Glance
Total revenue in fiscal 2021 came in at $213.99 billion. The Pharmaceutical Distribution Services contributed to 92.6% of net revenues in fiscal 2021. The Other segment accounted for 7.4% of net revenues.
Bottom Line
While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in AmerisourceBergen ten years ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in September 2012 would be worth $3,804.78, or a 280.48% gain, as of September 1, 2022, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
In comparison, the S&P 500 gained 181.18% and the price of gold went up -0.78% over the same time frame.
Analysts are anticipating more upside for ABC.
Over the past year, AmerisourceBergen outperformed its industry. The company exited the fiscal third quarter on a strong note, wherein both earnings and revenues beat the consensus mark. The company witnessed robust segmental performance in the quarter under review. Expansion at both margins is a positive. 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. A strong fiscal 2022 outlook instills optimism in the stock. A strong solvency position bodes well. AmerisourceBergen’s fiscal third-quarter revenues were better than expected. Yet, AmerisourceBergen continues to face headwinds like conversion of branded drugs and lower price generics. Cut-throat competition in the MedTech space and economic stagnation amid the pandemic remain woes.
The stock has jumped 5.44% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 6 higher, for fiscal 2022; the consensus estimate has moved up as well.