AmerisourceBergen Corp (ABC): Today's Featured Wholesale Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

AmerisourceBergen ( ABC) pushed the Wholesale industry lower today making it today's featured Wholesale laggard. The industry as a whole closed the day up 0.7%. By the end of trading, AmerisourceBergen fell 46 cents (-1.2%) to $38.18 on average volume. Throughout the day, 2.7 million shares of AmerisourceBergen exchanged hands as compared to its average daily volume of 2.6 million shares. The stock ranged in price between $38.04-$38.76 after having opened the day at $38.66 as compared to the previous trading day's close of $38.64. Other companies within the Wholesale industry that declined today were: China Metro-Rural Holdings ( CNR), down 7.4%, Aegean Marine Petroleum Network ( ANW), down 2.5%, Cardinal Health ( CAH), down 2.3%, and Longwei Petroleum Investment Holding Limite ( LPH), down 2.1%.

AmerisourceBergen Corporation, a pharmaceutical services company, provides drug distribution and related services to healthcare providers and pharmaceutical manufacturers primarily in the United States and Canada. AmerisourceBergen has a market cap of $9.61 billion and is part of the services sector. The company has a P/E ratio of 14.3, equal to the average wholesale industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are up 3.9% year to date as of the close of trading on Thursday. Currently there are eight analysts that rate AmerisourceBergen a buy, no analysts rate it a sell, and three rate it a hold.

TheStreet Ratings rates AmerisourceBergen as a buy. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, notable return on equity and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, China Auto Logistics ( CALI), up 12.4%, Armco Metals Holdings ( CNAM), up 9.5%, Olympic Steel ( ZEUS), up 6.2%, and Navarre Corporation ( NAVR), up 5.3%, were all gainers within the wholesale industry with Airgas ( ARG) being today's featured wholesale industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the wholesale industry could consider iShares Dow Jones US Cons Goods ( IYK) while those bearish on the wholesale industry could consider ProShares Ultra Sht Consumer Goods ( SZK).

FREE from Real Money's Jim Cramer: Winners and Losers Election 2012 - Steps to take NOW so you can profit no matter who is in charge! Free download now.
null

If you liked this article you might like

How You Can Beat the Still Astronomical Prices for Prescription Drugs

Teva's Massive Debt Load Just Became an Even Bigger Issue

Teva Shares Are Getting Obliterated Again After Vicious Investment Bank Downgrades

Teva Shares Are Taking a Beating and Dragging Down the Generic Drugmakers

Walgreens Takes Piece of PharMerica, Quest to Dominate Healthcare Continues