We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
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.
COR Stock Down Nearly 18% YTD: Should You Buy, Hold or Sell?
Read MoreHide Full Article
Key Takeaways
Cencora cut fiscal 2026 revenue growth outlook to 4-6% but raised adjusted EPS guidance to $17.70-$17.90.
COR is expanding specialty pharma, AI tools and oncology services to strengthen long-term growth potential.
OneOncology acquisition lifted gross margin by 45 basis points and boosts physician services expansion.
After delivering nearly 50% gains in 2025, shares of Cencora, Inc. (COR - Free Report) have lost 18% year to date, raising a key question for investors: Is the pullback creating a buying opportunity or signaling deeper operational concerns?
COR stock has also underperformed its closest peers, McKesson (MCK - Free Report) and Cardinal Health (CAH - Free Report) , so far this year. Over the same period, shares of McKesson have lost 5%, while those of Cardinal Health have gained 10.1%.
While the market has reacted negatively, likely due to Cencora’s reduced fiscal 2026 revenue growth outlook, a deeper look at its second-quarter earnings suggests the sell-off may be overlooking the company’s improving profitability and long-term strategic positioning. Despite lowering revenue guidance from 7-9% growth to 4-6%, management raised adjusted earnings per share (EPS) guidance to $17.70-$17.90, reflecting stronger margins and improving operating leverage.
Cencora continues to strengthen its position in specialty pharmaceuticals, digital healthcare solutions and oncology-focused physician services, which could support durable growth beyond near-term volatility.
YTD Performance: COR vs Industry & Peers
Image Source: Zacks Investment Research
Key Growth Drivers
Specialty Pharmaceutical Expansion Remains the Core Growth Engine: Cencora continues to expand aggressively in specialty pharmaceuticals, one of the fastest-growing verticals in healthcare. The company reported continued growth in specialty sales to health systems and physician practices, while management highlighted strong demand across its specialty distribution ecosystem.
Its expanding specialty capabilities position the company well as high-value therapies, such as oncology, immunology and rare disease treatments, continue to gain share in pharmaceutical spending. This business remains central to COR’s long-term earnings expansion.
OneOncology Acquisition Strengthens Physician Services Platform: The acquisition of OneOncology in February 2026 is becoming a major strategic asset for Cencora. The deal boosted consolidated gross profit margin by 45 basis points in the second quarter of fiscal 2026. It also strengthens the company’s management services organization (MSO) platform.
Management expects contributions from OneOncology to accelerate further in the second half of the fiscal year as integration improves physician recruitment, research collaboration and operational efficiencies across its oncology network.
Digital Transformation and AI Investments Are Improving Efficiency: Cencora is increasingly leveraging AI and digital infrastructure to strengthen supply-chain efficiency. Management highlighted that its newly launched AI-supported customer service tools are improving operational consistency and accelerating issue resolution.
The recently launched next-generation Nucleus inventory management platform helps specialty physician practices improve workflow automation, inventory forecasting and operational efficiency, further deepening customer relationships while expanding higher-value service offerings.
Cell and Gene Therapy Opportunity Expands Long-Term Growth Runway: Cencora is building strong positioning in the rapidly expanding cell and gene therapy market. Its recent distribution partnership with Kite Pharma for CAR-T therapies strengthens its leadership in complex therapy logistics.
Management also reported new contract wins in laboratory logistics and cell-and-gene therapies, reinforcing Cencora’s role in high-growth pharmaceutical categories that require specialized distribution capabilities and complex supply-chain expertise.
Estimate Revision Trend for COR
Estimates for Cencora’s fiscal 2026 earnings have moved up 1.9% to $17.72 per share over the past year, while the same for fiscal 2027 earnings has improved 2.1% to $19.69. The positive estimate revision depicts bullish sentiments for the stock.
Image Source: Zacks Investment Research
Competition Remains Intense
Competition remains fierce as peers, such as McKesson and Cardinal Health continue executing similar specialty-focused growth strategies. McKesson delivered 18% adjusted EPS growth in fiscal 2026 while expanding oncology and multispecialty networks. MCK added over 570 providers and is strengthening its AI-driven distribution infrastructure.
Cardinal Health remains equally aggressive, with pharmaceutical revenues growing 11% and specialty revenues expected to exceed $50 billion in fiscal 2026, supported by expanding MSO platforms and high-growth businesses, such as theranostics and precision health. Compared with its peers, Cencora’s specialty strategy remains competitive, though its softer revenue outlook has created near-term investor caution.
Valuation Outlook
The decline in COR’s shares so far this year has made the valuations look attractive. The company is currently trading at a discount to the industry and is lower than its five-year median.
COR’s shares currently trade at a forward 12-month price-to-earnings (P/E) of 14.49X, lower than the industry average of 15.15X.
Image Source: Zacks Investment Research
Risks and Challenges Could Keep Investors Cautious
Despite strong fundamentals, several risks remain. Cencora lowered its fiscal 2026 revenue guidance, primarily due to slower-than-expected GLP-1 growth, faster brand conversions at a large mail-order customer and $2 billion headwinds from IRA-driven manufacturer price reductions.
The company is also facing customer concentration risk following the loss of a major oncology customer in 2025. Rising debt from the OneOncology acquisition and increasing competitive intensity from McKesson and Cardinal Health may further pressure execution.
West Pharmaceutical, sporting a Zacks Rank #1 at present, reported first-quarter 2026 earnings per share (EPS) of $2.13, which beat the Zacks Consensus Estimate by 26.8%. Revenues of $844.9 million surpassed the Zacks Consensus Estimate by 8.5%.
West Pharmaceutical has an estimated long-term earnings growth rate of 13.9%. WST’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 19.4%.
View the Zacks #1 Rank List
Image: Bigstock
COR Stock Down Nearly 18% YTD: Should You Buy, Hold or Sell?
Key Takeaways
After delivering nearly 50% gains in 2025, shares of Cencora, Inc. (COR - Free Report) have lost 18% year to date, raising a key question for investors: Is the pullback creating a buying opportunity or signaling deeper operational concerns?
COR stock has also underperformed its closest peers, McKesson (MCK - Free Report) and Cardinal Health (CAH - Free Report) , so far this year. Over the same period, shares of McKesson have lost 5%, while those of Cardinal Health have gained 10.1%.
While the market has reacted negatively, likely due to Cencora’s reduced fiscal 2026 revenue growth outlook, a deeper look at its second-quarter earnings suggests the sell-off may be overlooking the company’s improving profitability and long-term strategic positioning. Despite lowering revenue guidance from 7-9% growth to 4-6%, management raised adjusted earnings per share (EPS) guidance to $17.70-$17.90, reflecting stronger margins and improving operating leverage.
Cencora continues to strengthen its position in specialty pharmaceuticals, digital healthcare solutions and oncology-focused physician services, which could support durable growth beyond near-term volatility.
YTD Performance: COR vs Industry & Peers
Image Source: Zacks Investment Research
Key Growth Drivers
Specialty Pharmaceutical Expansion Remains the Core Growth Engine: Cencora continues to expand aggressively in specialty pharmaceuticals, one of the fastest-growing verticals in healthcare. The company reported continued growth in specialty sales to health systems and physician practices, while management highlighted strong demand across its specialty distribution ecosystem.
Its expanding specialty capabilities position the company well as high-value therapies, such as oncology, immunology and rare disease treatments, continue to gain share in pharmaceutical spending. This business remains central to COR’s long-term earnings expansion.
OneOncology Acquisition Strengthens Physician Services Platform: The acquisition of OneOncology in February 2026 is becoming a major strategic asset for Cencora. The deal boosted consolidated gross profit margin by 45 basis points in the second quarter of fiscal 2026. It also strengthens the company’s management services organization (MSO) platform.
Management expects contributions from OneOncology to accelerate further in the second half of the fiscal year as integration improves physician recruitment, research collaboration and operational efficiencies across its oncology network.
Digital Transformation and AI Investments Are Improving Efficiency: Cencora is increasingly leveraging AI and digital infrastructure to strengthen supply-chain efficiency. Management highlighted that its newly launched AI-supported customer service tools are improving operational consistency and accelerating issue resolution.
The recently launched next-generation Nucleus inventory management platform helps specialty physician practices improve workflow automation, inventory forecasting and operational efficiency, further deepening customer relationships while expanding higher-value service offerings.
Cell and Gene Therapy Opportunity Expands Long-Term Growth Runway: Cencora is building strong positioning in the rapidly expanding cell and gene therapy market. Its recent distribution partnership with Kite Pharma for CAR-T therapies strengthens its leadership in complex therapy logistics.
Management also reported new contract wins in laboratory logistics and cell-and-gene therapies, reinforcing Cencora’s role in high-growth pharmaceutical categories that require specialized distribution capabilities and complex supply-chain expertise.
Estimate Revision Trend for COR
Estimates for Cencora’s fiscal 2026 earnings have moved up 1.9% to $17.72 per share over the past year, while the same for fiscal 2027 earnings has improved 2.1% to $19.69. The positive estimate revision depicts bullish sentiments for the stock.
Image Source: Zacks Investment Research
Competition Remains Intense
Competition remains fierce as peers, such as McKesson and Cardinal Health continue executing similar specialty-focused growth strategies. McKesson delivered 18% adjusted EPS growth in fiscal 2026 while expanding oncology and multispecialty networks. MCK added over 570 providers and is strengthening its AI-driven distribution infrastructure.
Cardinal Health remains equally aggressive, with pharmaceutical revenues growing 11% and specialty revenues expected to exceed $50 billion in fiscal 2026, supported by expanding MSO platforms and high-growth businesses, such as theranostics and precision health. Compared with its peers, Cencora’s specialty strategy remains competitive, though its softer revenue outlook has created near-term investor caution.
Valuation Outlook
The decline in COR’s shares so far this year has made the valuations look attractive. The company is currently trading at a discount to the industry and is lower than its five-year median.
COR’s shares currently trade at a forward 12-month price-to-earnings (P/E) of 14.49X, lower than the industry average of 15.15X.
Image Source: Zacks Investment Research
Risks and Challenges Could Keep Investors Cautious
Despite strong fundamentals, several risks remain. Cencora lowered its fiscal 2026 revenue guidance, primarily due to slower-than-expected GLP-1 growth, faster brand conversions at a large mail-order customer and $2 billion headwinds from IRA-driven manufacturer price reductions.
The company is also facing customer concentration risk following the loss of a major oncology customer in 2025. Rising debt from the OneOncology acquisition and increasing competitive intensity from McKesson and Cardinal Health may further pressure execution.
COR’s Zacks Rank & Another Key Pick
Currently, Cencora has a Zacks Rank #2 (Buy).
West Pharmaceutical (WST - Free Report) is another top-ranked stock from the broader medical space. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
West Pharmaceutical, sporting a Zacks Rank #1 at present, reported first-quarter 2026 earnings per share (EPS) of $2.13, which beat the Zacks Consensus Estimate by 26.8%. Revenues of $844.9 million surpassed the Zacks Consensus Estimate by 8.5%.
West Pharmaceutical has an estimated long-term earnings growth rate of 13.9%. WST’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 19.4%.