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AmerisourceBergen (ABC) Stock Moves -1.22%: What You Should Know

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AmerisourceBergen (ABC - Free Report) closed the most recent trading day at $150, moving -1.22% from the previous trading session. This change was narrower than the S&P 500's 1.85% loss on the day. Meanwhile, the Dow lost 1.66%, and the Nasdaq, a tech-heavy index, lost 10.91%.

Prior to today's trading, shares of the prescription drug distributor had lost 3.79% over the past month. This has lagged the Medical sector's loss of 3.72% and the S&P 500's loss of 2.85% in that time.

AmerisourceBergen will be looking to display strength as it nears its next earnings release. In that report, analysts expect AmerisourceBergen to post earnings of $3.27 per share. This would mark year-over-year growth of 1.55%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $60.81 billion, up 5.35% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $11.61 per share and revenue of $251.57 billion. These totals would mark changes of +5.26% and +5.44%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for AmerisourceBergen. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.31% lower. AmerisourceBergen is currently a Zacks Rank #3 (Hold).

Looking at its valuation, AmerisourceBergen is holding a Forward P/E ratio of 13.08. This valuation marks a discount compared to its industry's average Forward P/E of 19.83.

Meanwhile, ABC's PEG ratio is currently 1.5. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Medical - Dental Supplies industry currently had an average PEG ratio of 1.97 as of yesterday's close.

The Medical - Dental Supplies industry is part of the Medical sector. This group has a Zacks Industry Rank of 34, putting it in the top 14% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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