Stock to Buy: AmerisourceBergen Corp. (ABC)
Pharmaceuticals service and drug distribution company, AmerisourceBergen Corp. (NYSE: ABC), has been in a steady bull channel supported by the 50-day moving average for over a year. The stock is up more than 80% since its low in March 2009, and now appears to be getting stronger as the stochastic is turning up, which is a positive sign, and upside volumeis increasing.
ABC's growth record has outpaced the industry average of 10.2%, but despite that, it has a P/E ratio of just 16.36 versus the industry average of 16.87, giving it better price appreciation potential than its peers. Furthermore, earnings growth of over 32% has made ABC an institutional favorite.
Our technical target is $40, and The Street rates it a "buy," as does S&P, which has a 12-month target of $36.
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