By Jim Van Meerten, Barchart [1] (Jul 7th, 2023)
The Chart of the Day belongs to the healthcare company AmerisourceBergen (ABC). I found the stock by using Barchart's powerful screening functions to find stocks with the highest technical buy signals, highest Weighted Alpha, superior current momentum and having a Trend Seeker buy signal then used the Flipchart feature to review the charts for consistent price appreciation. Since the Trend Seeker signaled a buy on 6/5 the stock gained 10.02%.
ABC Price vs Daily Moving Averages
[2]
AmerisourceBergen Corporation sources and distributes pharmaceutical products. Its U.S. Healthcare Solutions segment distributes brand-name and generic pharmaceuticals, over-the-counter healthcare products, home healthcare supplies and equipment, and related services to acute care hospitals and health systems, independent and chain retail pharmacies, mail order pharmacies, medical clinics, long-term care and alternate site pharmacies, and other customers. The company also provides pharmacy management, staffing, and other consulting services; supply management software to retail and institutional healthcare providers; packaging solutions to various institutional and retail healthcare providers; clinical trial support, product post-approval, and commercialization support services; data analytics, outcomes research, and additional services for biotechnology and pharmaceutical manufacturers; and pharmaceuticals, vaccines, parasiticides, diagnostics, micro feed ingredients, and other products to customers in the companion animal and production animal markets, as well as demand-creating sales force services to manufacturer. In addition, this segment distributes plasma and other blood products, injectable pharmaceuticals, vaccines, and other specialty products; and provides other services primarily to physicians who specialize in various disease states, primarily oncology, as well as to other healthcare providers, including hospitals and dialysis clinics. The company's International Healthcare Solutions segment offers international pharmaceutical wholesale and related service, and global commercialization services; and distributes pharmaceuticals, other healthcare products, and related services to pharmacies, doctors, health centers and hospitals primarily in Europe. This segments also provides specialty transportation and logistics services for the biopharmaceutical industry. The company was incorporated in 2001 and is headquartered in Conshohocken, Pennsylvania.
Barchart's Opinion Trading systems are listed below. Please note that the Barchart Opinion indicators are updated live during the session every 20 minutes and can therefore change during the day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report.
Barchart Technical Indicators:
- 100% technical buy signals
- 39.16+ Weighted Alpha
- 37.44% gain in the last year
- Trend Seeker buy signal
- Above its 20, 50 and 100 day moving averages
- 15 new highs and up 10.22% in the last month
- Relative Strength Index 77.16%
- Technical support level at $190.79
- Recently traded at $192.19 with 50 day moving average of $176.20
Fundamental Factors:
- Market Cap $38.60 billion
- P/E 16.70
- Revenue projected to grow by 6.80% this year and increase again by 5.40% next year
- Earnings estimated to increase by 7.40% this year, increase an additional 7.30% next year and continue to compound at an annual rate of 7.95% for the next 5 years
Analysts and Investor Sentiment — I don't buy stocks because everyone else is buying but I do realize that if major firms and investors are dumping a stock it's hard to make money swimming against the tide:
- Wall Street analyst gave 9 strong buy, 3 buy and 5 hold opinions on the stock
- Analysts price targets are between $149 and $213 – with a consensus of $188 – which is lower than today's close
- The individual investors on Motley Fool are high on the stock and voted 307 to 34 for the stock to beat the market with the more experienced investors voting56 to 5 for the same result
- Value Line rates the stock its above average rating of 2 but has an 18 month price target of $172 for a 10% loss
- CFRAs MarketScope rates it a 3 star hold with a 12 month price target of $180 – lower than today's close
- 21,980 investors monitor the stock on Seeking Alpha
Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in the next 72 hours.
Additional disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance and reevaluate your stop losses at least on a weekly basis.
On the date of publication, Jim Van Meerten did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here [3].