/Cencora%20Inc_%20HQ-by%20JHVEPhoto%20via%20iStock.jpg)
With a market cap of $50.5 billion, Conshohocken, Pennsylvania-based Cencora, Inc. (COR) is a global healthcare solutions provider specializing in pharmaceutical distribution and related services. Cencora operates through its U.S. Healthcare Solutions and International Healthcare Solutions segments, offering pharmaceuticals, medical supplies, data analytics, and logistics services to various healthcare providers and manufacturers.
Companies valued at $10 billion or more are generally considered “large-cap” stocks, and Cencora fits this criterion perfectly. With a strong presence in both domestic and international markets, Cencora plays a crucial role in optimizing pharmaceutical supply chains and advancing patient care.
However, the prescription drug distributor has fallen 1.2% from its 52-week high of $263.70, recorded on Mar. 11. Cencora shares have risen 12.4% over the past three months, outperforming the broader Nasdaq Composite's ($NASX) nearly 13% decline during the same period.
Longer term, COR stock has gained over 16% on a YTD basis, outpacing NASX's 9.7% decrease over the same period. Also, Cencora has surged 9.7% over the past 52 weeks, compared to NASX's 8.8% gain.
Despite few fluctuations, COR has mostly traded above both its 50-day and 200-day moving averages since last year.
Shares of Cencora recovered marginally on Feb. 5 as the company posted Q1 2025 adjusted EPS of $3.73 and revenue reached $81.5 billion, surpassing the forecast. Healthcare Solutions revenue to $74 billion, driven by strong demand for GLP-1 drugs and specialty medicines, contributed to the outperformance. Additionally, the company raised its fiscal 2025 adjusted EPS forecast to $15.25 - $15.55 and completed its $4.6 billion acquisition of Retina Consultants of America (RCA), reinforcing investor confidence in its specialty healthcare expansion.
In contrast, rival McKesson Corporation (MCK) has slightly underperformed COR, gaining 14.6% on a YTD basis. However, MCK saw a rise of nearly 23% on a YTD basis, outperforming Cencora.
Due to COR's outperformance relative to Nasdaq, analysts remain bullish about its prospects. Among the 15 analysts covering the stock, there is a consensus rating of “Strong Buy,” and it is currently trading below the mean price target of $282.07.
