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 down 0.1%. By the end of trading, AmerisourceBergen fell 41 cents (-1%) to $40.06 on light volume. Throughout the day, 1.8 million shares of AmerisourceBergen exchanged hands as compared to its average daily volume of 2.7 million shares. The stock ranged in price between $39.92-$40.60 after having opened the day at $40.60 as compared to the previous trading day's close of $40.47. Other companies within the Wholesale industry that declined today were:
Rada Electronics Industries (
RADA), down 11.2%,
Shengkai Innovations (
VALV), down 9.8%,
China Auto Logistics (
CALI), down 8.9%, and
InfoSonics Corporation (
IFON), down 4.3%.
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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 $10.15 billion and is part of the services sector. The company has a P/E ratio of 14.6, below the S&P 500 P/E ratio of 17.7. Shares are up 8.8% year to date as of the close of trading on Friday. Currently there are seven 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, good cash flow from operations, increase in net income and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows low profit margins.
On the positive front,
Aegean Marine Petroleum Network (
ANW), up 11.9%,
Hudson Technology (
HDSN), up 6.9%,
Susser Petroleum Partners (
SUSP), up 4.8%, and
RTI International Metals (
RTI), up 3.9%, were all gainers within the wholesale industry with
Omnicare (
OCR) 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).
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