AmerisourceBergen Corp (ABC): Today's Featured Services 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 Services sector lower today making it today's featured Services laggard. The sector as a whole closed the day up 1.1%. By the end of trading, AmerisourceBergen fell $2.41 (-4.3%) to $53.41 on heavy volume. Throughout the day, 7,915,581 shares of AmerisourceBergen exchanged hands as compared to its average daily volume of 2,492,300 shares. The stock ranged in price between $53.12-$56.00 after having opened the day at $55.82 as compared to the previous trading day's close of $55.82. Other companies within the Services sector that declined today were: QKL Stores ( QKLS), down 23.7%, Point.360 ( PTSX), down 20.5%, CRA International ( CRAI), down 16.0% and Safeway ( SWY), down 13.9%.
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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 $13.0 billion and is part of the wholesale industry. The company has a P/E ratio of 19.8, above the S&P 500 P/E ratio of 17.7. Shares are up 30.4% year to date as of the close of trading on Wednesday.

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 increase in stock price during the past year. We feel these strengths outweigh the fact that the company shows low profit margins.

On the positive front, ITT Educational Services ( ESI), down 30.5%, Destination XL Group ( DXLG), down 28.3%, Casual Male Retail Group ( CMRG), down 28.3% and Stamps.com ( STMP), down 27.1% , were all gainers within the services sector with TJX Companies ( TJX) being today's featured services sector leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the services sector could consider iShares Dow Jones US Cons Services ( IYC) while those bearish on the services sector could consider ProShares Ultra Short Consumer Sers ( SCC).

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