Stock Price & Analysis

Based on the positive earnings outlook and strong analyst sentiment, it is a good time to buy COR stock. The stock is near a buy point after forming a new base, indicating potential for further growth.

Cencora (COR) stock is predicted to reach $280 by end of 2025, supported by strong Q1 earnings and raised fiscal year guidance. The stock is currently trading near a buy point after forming a new base, with analysts maintaining a "Strong Buy" consensus and a mean price target of $282.07.

The S1 support level for COR Stock is $266.32 ,The R1 resistant level for COR Stock is $278.82.

As of the end of day on 2025-04-02, the price of COR Stock was $278.93.

The target price for COR Stock according to analyst rating is 283.40, with the highest price target at 308.00 and the lowest at 263.00. Analysts have a Moderate Buy rating on COR Stock overall.

The market cap of COR is $54.1B.

Analysis and Insights

COR appears overvalued based on its current valuation metrics and financial performance. Here's the analysis:

1. High Valuation Metrics:

   • P/E Ratio: 29.87 (Q4 2024) and 31.83 (Q1 2025), indicating a premium valuation compared to industry peers.
   • P/B Ratio: 67.93 (Q4 2024) and 192.22 (Q1 2025), suggesting the stock is trading significantly above its book value.
   • EV/EBITDA: 11 (Q4 2024) and 11.58 (Q1 2025), which is moderate but not justifying the high P/E and P/B ratios.

2. Revenue Growth:

   • Total Revenue grew from $79.05B (Q4 2024) to $81.48B (Q1 2025), showing steady growth.

3. Net Income and Profitability:

   • Net Income surged from $3.38M (Q4 2024) to $488.6M (Q1 2025), driven by improved margins.
   • However, the ROE of 2.74% (Q4 2024) and 2.78% (Q1 2025) is low, indicating inefficient use of equity.

4. Stock Performance:

   • The stock is near a buy point after forming a new base, but its high valuation and low dividend yield (0.91%-0.93%) suggest limited upside.

5. Analyst Sentiment:

   • Mixed ratings, with a consensus "Hold" rating and a price target of $274, reflecting cautious optimism.

Conclusion:

COR is overvalued based on its high P/E and P/B ratios, low ROE, and moderate growth prospects. While revenue and net income are improving, the stock's valuation and low dividend yield suggest limited near-term upside. Investors should consider waiting for a pullback or clearer signs of sustained growth before entering.

Cencora, Inc. is a global pharmaceutical sourcing and distribution services company. The Company is focused on improving the lives of people and animals around the world. It is engaged in the delivery of pharmaceuticals, healthcare products, and solutions. The Company operates through two segments: U.S. Healthcare Solutions and International Healthcare Solutions. The U.S. Healthcare Solutions segment distributes a comprehensive offering of brand-name, specialty brand-name and generic pharmaceuticals, over-the-counter healthcare products, home healthcare supplies and equipment, and related services to a variety of healthcare providers, including acute care hospitals and health systems, independent and chain retail pharmacies, long-term care and alternate site pharmacies, and other customers. The International Healthcare Solutions segment consists of businesses that focus on international pharmaceutical wholesale and related service operations and global commercialization services.

COR stock is predicted to reach $400 by 2030, driven by strong demand in the data center sector and expansion of digital infrastructure. The stock's growth will be supported by increasing cloud computing needs and limited supply of high-quality data center assets.

COR has a total of 42000 employees.