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• Cencora (COR) is a healthcare solutions provider with strong technical “buy” signals and consistent price appreciation.
• The stock has gained 20.47% since a “buy” signal was issued on Jan. 16.
• Drug stocks like Cencora tend to be recession-proof, making today’s Chart of the Day especially relevant following a tariffs-driven selloff. 

Today’s Featured Stock:

Valued at $54.20 billion, Cencora (COR) is a healthcare solutions provider formerly known as AmerisourceBergen, and is based in Conshohocken, Pennsylvania. The company is a component of the broad-based S&P 500 Index (SPX).
 

What I’m Watching:

I found today’s Chart of the Day by using Barchart’s powerful screening functions. I sorted for stocks with the highest technical buy signals, superior current momentum in both strength and direction, and a Trend Seeker “buy” signal. I then used Barchart’s Flipchart feature to review the charts for consistent price appreciation. COR checks those boxes. Since the Trend Seeker signaled a “buy” on Jan. 16, the stock has gained 20.47%.

COR Stock Price vs. Daily Moving Averages:

(Click on image to enlarge)

www.barchart.com

On the chart, you can note that the stock is trading above all of its daily moving averages and has rising prices on rising volume.
 

Barchart Technical Indicators for COR Stock:

Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.

When a stock is trading above all of its daily moving averages and closed within 1% of its 52-week high, it won’t take much to hit another new high

• Cencora has a 100% technical “buy” signal.
• The stock closed at $289.36 on April 3, within 1% of its 52-week high of $291.83.
• COR has a weighted alpha of +28.84.
• The stock has gained 17.7% over the past year.
• Trend Seeker “buy” signal intact.
• COR is trading above its 20-, 50- and 100-day moving averages.
• The stock has made 13 new highs and is up 13.31% in the last month.
• The 14-day Relative Strength Index is at 83.66%
• The technical support level at $277.37.

www.barchart.com
 

Follow the Fundamentals:

Note the projected increases in both revenue and earnings.

• Trailing price/earnings (P/E) ratio of 19.52x.
• Forward dividend yield of 0.76%.
• Revenue is expected to grow 9.92% this year and another 6.93% next year.
• Earnings are estimated to increase 11.95% this year and increase again by 9.78% next year.
   

Analyst and Investor Sentiment on Cencora:

I don’t buy stocks because everyone else is buying, but I do realize that if major firms and investors are dumping a stock, it’s hard to make money swimming against the tide.

It looks like not only Wall Street analysts, but also many of the popular investing advisory services, are bullish on this stock.

• Wall Street analysts issued 11 “Strong Buy,” and 4 “Hold,” opinions on the stock with price targets between $242 and $317.
• Value Line gives the stock its highest rating and comments: “Cencora looks poised to set record top- and bottom-line results in 2025.”
• CFRA’s MarketScope gives the stock a “Buy” rating and comments: “We see strong long-term growth prospects for drug distributor volumes as aging developed populations and expanding health care coverage in emerging markets drive prescription demand. We also see high barriers to entry due to large capital requirements, a concentrated customer base, and the three largest distributors holding around 90% market share.”
• Morningstar thinks the stock is 15% overvalued mainly because its recent price has driven up the P/E and comments: “We expect the US distribution space to continue to grow at a low- to mid-single-digit rate over the next five years, fueled by an aging population, introduction of new pharmaceuticals, and increased use of specialty medicines. We believe Cencora is well positioned to enjoy these dynamics and expect it to maintain a leading position over our forecast period.”
• Of the 1,104 investors following the stock on Motley Fool, 986 investors think the stock will beat the market while 118 think it won’t.
• 23,980 investors monitor the stock on Seeking Alpha, which rates the stock a “Hold.”

The Bottom Line:

Drug stocks like Cencora tend to be almost “recession-proof” since once a drug is prescribed, it is seldom cancelled.Additional disclosure: 

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