Trade-Ideas LLC identified AmerisourceBergen ( ABC) as an unusual social activity candidate. In addition to specific proprietary factors, Trade-Ideas identified AmerisourceBergen as such a stock due to the following factors:

  • ABC has more that 20x the normal benchmarked social activity for this time of the day compared to its average of 1.87 mentions/day.
  • ABC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $167.5 million.

Identifying stocks with 'Unusual Social Activity' tends to be a valuable process for traders looking to capitalize on the 'talk of the town' stocks that are basking in far more attention from the StockTwits financial community than normal. Good press? Bad press? It ultimately doesn't matter if it's good or bad if you know how to trade around the sentiment. Certain hedge funds use such data for their proprietary algorithms and it is not uncommon to see shared social sentiment play itself out in a stock's price trend.

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More details on ABC:

AmerisourceBergen Corporation sources and distributes pharmaceutical products to healthcare providers, pharmaceutical and biotech manufacturers, and specialty drug patients in the United States and internationally. The stock currently has a dividend yield of 1.6%. ABC has a PE ratio of 7. Currently there are 2 analysts that rate AmerisourceBergen a buy, no analysts rate it a sell, and 10 rate it a hold.

The average volume for AmerisourceBergen has been 2.6 million shares per day over the past 30 days. AmerisourceBergen has a market cap of $18.3 billion and is part of the services sector and wholesale industry. The stock has a beta of 0.74 and a short float of 5% with 5.93 days to cover. Shares are down 17.9% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates AmerisourceBergen as a buy. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth, notable return on equity, good cash flow from operations and impressive record of earnings per share growth. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the ratings report include:
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Health Care Providers & Services industry. The net income increased by 217.7% when compared to the same quarter one year prior, rising from -$513.39 million to $604.14 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 14.3%. Since the same quarter one year prior, revenues slightly increased by 9.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Health Care Providers & Services industry and the overall market, AMERISOURCEBERGEN CORP's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • Net operating cash flow has increased to $879.74 million or 18.60% when compared to the same quarter last year. Despite an increase in cash flow, AMERISOURCEBERGEN CORP's cash flow growth rate is still lower than the industry average growth rate of 39.99%.
  • AMERISOURCEBERGEN CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, AMERISOURCEBERGEN CORP swung to a loss, reporting -$0.79 versus $1.20 in the prior year. This year, the market expects an improvement in earnings ($5.50 versus -$0.79).

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