Cencora COR shares soared 3.7% in the last trading session to close at $233.12. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 6.8% loss over the past four weeks.
Cencora recorded a strong price rise driven by investors’ optimism surrounding the company’s upcoming earnings release, scheduled on Nov. 6, 2024. The Zacks Consensus Estimate for the fiscal fourth quarter suggests a revenue growth of 12.7% and earnings growth of 12.2%. The earnings estimate has moved north 0.3% to $3.21 in the past 30 days.
This prescription drug distributor is expected to post quarterly earnings of $3.21 per share in its upcoming report, which represents a year-over-year change of +12.2%. Revenues are expected to be $77.68 billion, up 12.7% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Cencora, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on COR going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Cencora is a member of the Zacks Medical Services industry. One other stock in the same industry, Viatris VTRS, finished the last trading session 4% higher at $11.84. VTRS has returned -3.6% over the past month.
Viatris' consensus EPS estimate for the upcoming report has changed -3.1% over the past month to $0.68. Compared to the company's year-ago EPS, this represents a change of -12.8%. Viatris currently boasts a Zacks Rank of #4 (Sell).
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