Cencora (COR) is a Remarkable Growth Stock: Here Are 3 Reasons Why
Growth Stocks and Risks: Investors are interested in growth stocks for their potential high returns, but these investments come with above-average risks and volatility, making it challenging to find reliable options.
Cencora's Growth Potential: Cencora (COR) is highlighted as a promising growth stock due to its favorable Growth Score and strong Zacks Rank, indicating its potential for significant market outperformance.
Key Financial Metrics: Cencora shows impressive earnings growth, with a projected EPS growth of 15.4% this year, alongside a cash flow growth rate of 12.9%, both surpassing industry averages.
Earnings Estimate Revisions: Positive trends in earnings estimate revisions for Cencora contribute to its strong investment appeal, positioning it well for future growth and making it a recommended pick for growth investors.
Trade with 70% Backtested Accuracy
Analyst Views on COR
About COR
About the author

- Merger Overview: Cencora and Covetrus have entered into a definitive agreement to merge MWI Animal Health with Covetrus, creating a comprehensive animal health platform, with the transaction valuing MWI at an enterprise value of $3.5 billion, exceeding Cencora's current book value, indicating strong market optimism about the merger.
- Cash and Equity Structure: Upon closing, Cencora will receive $1.25 billion in upfront cash, $800 million in preferred equity, and $1.45 billion in common equity, resulting in a 34.3% non-controlling stake in the combined company, thereby enhancing its market position in the animal health sector.
- Financial Guidance Reaffirmed: Cencora reaffirmed its fiscal 2026 financial guidance, projecting operating income growth between 11.5% and 13.5%, indicating that the company can maintain robust growth while integrating OneOncology, which boosts investor confidence.
- Strategic Market Implications: This merger not only enhances Cencora's asset value and market share but also provides a stronger competitive edge in the rapidly growing animal health market, expected to drive future business growth and innovation.
- Financing Scale: Cencora successfully priced $1.5 billion in senior notes across five different maturities, demonstrating strong capital market capabilities despite a slight market reaction with shares down 0.90%.
- Note Rates: The notes range from 3.950% to 5.650%, reflecting market assessments of the company's credit risk, with higher rates potentially increasing future financial costs and impacting profitability.
- Maturity Structure: The notes have maturities ranging from 2029 to 2056, providing a flexible financing structure that helps Cencora meet capital needs in the coming years while supporting its business expansion strategy.
- Market Expectations: The offering is expected to close on February 13, 2026, with Cencora projecting an 11.5%-13.5% operating income growth for 2026, indicating confidence in future performance despite current stock price challenges.
- Financing Scale: Cencora announced a $1.5 billion offering of five different senior notes with varying maturities, including 3.950% notes due in 2029, 4.250% notes due in 2030, 4.600% notes due in 2033, 4.900% notes due in 2036, and 5.650% notes due in 2056, demonstrating the company's robust capital market financing capabilities.
- Use of Proceeds: The net proceeds from this offering will be used to repay amounts outstanding under Cencora's 364-Day Term Credit Agreement dated January 12, 2026, which was utilized to partially fund Cencora's acquisition of OneOncology, indicating the company's strategic focus on financial integration post-acquisition.
- Underwriting Team: The offering is being managed by a consortium of leading banks including Citigroup, J.P. Morgan, BofA Securities, and Wells Fargo Securities, reflecting strong market confidence in Cencora and its significant position within the industry.
- Compliance Statement: Cencora emphasized that this offering does not constitute an offer to sell or solicit offers to buy the notes, and sales may be unlawful in certain states or jurisdictions, highlighting the company's commitment to compliance with securities laws.

- Fiscal-Year Outlook Increase: Cardinal Health has raised its fiscal-year outlook for the second time in less than a month.
- Positive Financial Performance: The company’s recent adjustments indicate strong financial performance and confidence in future growth.
- Chipmaker Sell-off: Advanced Micro Devices (AMD) plunged over 17% after analysts issued a weak Q1 sales forecast, raising concerns about AI demand and pressuring the broader tech sector, particularly high-flying stocks.
- Super Micro Computer Surge: Super Micro Computer's stock rose more than 13% after forecasting Q3 net sales of at least $12.3 billion, significantly above the consensus estimate of $10.25 billion, indicating strong growth potential in a competitive market.
- Mixed Economic Data: The January ADP employment change rose by 22,000, falling short of the expected 45,000, while the ISM services index remained unchanged at 53.8, exceeding expectations, reflecting the complexities of economic recovery that may influence future monetary policy.
- Improved Market Sentiment: Market sentiment improved following President Trump's signing of a government funding deal, although the agreement only funds the Department of Homeland Security through February 13, highlighting ongoing uncertainties in government operations.
- Acquisition Completed: Cencora has finalized its acquisition of a controlling stake in OneOncology, with CEO Robert Mauch emphasizing that this move will elevate the fiscal 2026 adjusted operating income growth forecast to 11.5%-13.5%, showcasing the company's ongoing strength in the healthcare solutions sector.
- Financial Highlights: In Q1, Cencora reported an adjusted diluted EPS of $4.08, a 9% increase, while consolidated revenue reached $85.9 billion, up 5.5%, driven by solid growth in both U.S. Healthcare Solutions and Other segments, further solidifying the company's market position.
- Outlook Revision: The company raised its fiscal 2026 consolidated revenue growth guidance to 7%-9% and reaffirmed its EPS guidance range of $17.45 to $17.75, reflecting confidence in the sustained performance of the U.S. Healthcare Solutions segment and the expected contributions from OneOncology.
- Risks and Challenges: Despite facing challenges from the loss of a major oncology customer, management expects this issue to ease in Q4, while the International Healthcare Solutions segment is experiencing revenue pressure due to manufacturer price adjustments; however, the company maintains its full-year guidance, demonstrating strong resilience.









