Cencora Inc. Reports Growth Amid Competitive Pharmaceutical Market

With a market cap of $50.5 billion, Conshohocken, Pennsylvania-based Cencora, Inc. (COR) stands out as a prominent player in the global healthcare sector. Specializing in pharmaceutical distribution and related services, Cencora operates through its two primary divisions: U.S. Healthcare Solutions and International Healthcare Solutions. This structure allows the company to provide a diverse range of pharmaceuticals, medical supplies, data analytics, and logistics services to various healthcare providers and manufacturers.

Generally, companies with valuations of $10 billion or more are categorized as “large-cap” stocks. Cencora fits this definition well and boasts a robust presence in both domestic and international markets, which positions it as a key contributor to optimizing pharmaceutical supply chains and enhancing patient care.

Recently, Cencora experienced a slight decline, falling 1.2% from its 52-week high of $263.70, achieved on March 11. Despite this dip, Cencora shares have risen 12.4% over the last three months, significantly outperforming the broader Nasdaq Composite’s ($NASX) nearly 13% decline within the same timeframe.

Looking at a longer-term perspective, COR has increased over 16% year-to-date, outpacing NASX’s 9.7% decrease during the same interval. Additionally, Cencora achieved a 9.7% rise over the past year, while NASX posted an 8.8% gain. Despite minor fluctuations throughout the year, COR has consistently traded above both its 50-day and 200-day moving averages.

Shares of Cencora saw a slight recovery on February 5, following the announcement of Q1 2025 results. Adjusted EPS reached $3.73, with total revenue hitting $81.5 billion, surpassing forecasts. The growth in Healthcare Solutions revenue to $74 billion, fueled by strong demand for GLP-1 drugs and specialty medicines, contributed significantly to this outperformance. Furthermore, the company raised its fiscal 2025 adjusted EPS forecast to a range of $15.25 – $15.55 and successfully completed its $4.6 billion acquisition of Retina Consultants of America (RCA), enhancing investor confidence in its expansion within the specialty healthcare sector.

In comparison, rival McKesson Corporation (MCK) has shown slightly lower performance relative to COR, with a 14.6% gain year-to-date. Nonetheless, MCK previously had a more substantial increase of nearly 23% this year, surpassing Cencora’s performance.

Given COR’s relative outperformance against the Nasdaq, analysts maintain a favorable outlook regarding its future. Among the 15 analysts following the Stock, there is a consensus rating of “Strong Buy,” with shares currently trading below the mean price target of $282.07.

On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.