Back to top

Image: Bigstock

Cencora, Inc. (COR) Hits Fresh High: Is There Still Room to Run?

Read MoreHide Full Article

A strong stock as of late has been Cencora (COR - Free Report) . Shares have been marching higher, with the stock up 9.9% over the past month. The stock hit a new 52-week high of $369.38 in the previous session. Cencora has gained 62.8% since the start of the year compared to the 6.3% move for the Zacks Medical sector and the 6.9% return for the Zacks Medical Services industry.

What's Driving the Outperformance?

The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on November 5, 2025, Cencora reported EPS of $3.84 versus consensus estimate of $3.79.

For the current fiscal year, Cencora is expected to post earnings of $17.63 per share on $339.11 in revenues. This represents a 10.19% change in EPS on a 5.53% change in revenues. For the next fiscal year, the company is expected to earn $19.48 per share on $361.59 in revenues. This represents a year-over-year change of 10.49% and 6.63%, respectively.

Valuation Metrics

Though Cencora has recently hit a 52-week high, what is next for Cencora? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.

On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.

Cencora has a Value Score of A. The stock's Growth and Momentum Scores are A and C, respectively, giving the company a VGM Score of A.

In terms of its value breakdown, the stock currently trades at 20.8X current fiscal year EPS estimates, which is a premium to the peer industry average of 15.3X. On a trailing cash flow basis, the stock currently trades at 14.5X versus its peer group's average of 10.4X. Additionally, the stock has a PEG ratio of 1.74. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making Cencora an interesting choice for value investors.

Zacks Rank

We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Cencora currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.

Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Cencora passes the test. Thus, it seems as though Cencora shares could have potential in the weeks and months to come.

How Does COR Stack Up to the Competition?

Shares of COR have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Pediatrix Medical Group, Inc. (MD - Free Report) . MD has a Zacks Rank of #1 (Strong Buy) and a Value Score of B, a Growth Score of B, and a Momentum Score of A.

Earnings were strong last quarter. Pediatrix Medical Group, Inc. beat our consensus estimate by 48.84%, and for the current fiscal year, MD is expected to post earnings of $2.08 per share on revenue of $1.91 billion.

Shares of Pediatrix Medical Group, Inc. have gained 31.3% over the past month, and currently trade at a forward P/E of 11.19X and a P/CF of 13.1X.

The Medical Services industry may rank in the bottom 58% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for COR and MD, even beyond their own solid fundamental situation.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Pediatrix Medical Group, Inc. (MD) - free report >>

Cencora, Inc. (COR) - free report >>

Published in