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 down 0.2%. By the end of trading, AmerisourceBergen fell $0.64 (-1.2%) to $54.08 on average volume. Throughout the day, 2,369,397 shares of AmerisourceBergen exchanged hands as compared to its average daily volume of 2,687,400 shares. The stock ranged in price between $54.08-$54.72 after having opened the day at $54.49 as compared to the previous trading day's close of $54.72. Other companies within the Wholesale industry that declined today were: Rada Electronics Industries ( RADA), down 11.7%, Shengkai Innovations ( VALV), down 6.4%, Nash-Finch Company ( NAFC), down 6.0% and InfoSonics Corporation ( IFON), down 4.4%.
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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 $12.4 billion and is part of the services sector. The company has a P/E ratio of 18.5, above the S&P 500 P/E ratio of 17.7. Shares are up 24.8% year to date as of the close of trading on Thursday. Currently there are 3 analysts that rate AmerisourceBergen a buy, no analysts rate it a sell, and 5 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 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, Taitron Components Inc. Class A ( TAIT), down 11.1%, Crystal Rock Holdings ( CRVP), down 6.7%, Armco Metals Holdings ( CNAM), down 6.1% and Aegean Marine Petroleum Network ( ANW), down 5.5% , were all gainers within the wholesale industry with W.W. Grainger ( GWW) 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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