Is Cencora Stock Underperforming the S&P 500?

Cencora, Inc. (COR) is a pharmaceutical sourcing and distribution company valued at a market cap of $44 billion. The Conshohocken, Pennsylvania-based company operates through the U.S. Healthcare Solutions and International Healthcare Solutions segments, providing pharmaceutical supplies, healthcare products, and services to various healthcare providers.

Companies worth $10 billion or more are generally described as “large-cap stocks,” Cencora fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the medical distribution industry. 

Cencora’s shares have retreated 10.1% from their 52-week high of $253.27, touched on Nov. 29. COR has declined marginally over the past three months, lagging behind the S&P 500 Index’s ($SPX) 4% returns over the same time frame. 

COR has gained 14% over the past 52 weeks and 10.9% in 2024. In comparison, the SPX has surged 26.2% over the past year and 24.3% returns on a YTD basis.

COR has encountered volatility lately and has been trading below its 200-day and 50-day moving averages since early December, indicating a recent bearish trend.

Shares of Cencora climbed 5% after the company reported its Q4 earnings results on Nov. 6. The company exceeded expectations for both revenue and earnings, further bolstered by an optimistic outlook for fiscal 2025. It anticipates adjusted EPS in the range of $14.80 to $15.10, with revenue growth projected between 7% and 9%.

Cencora’s competitor, McKesson Corporation (MCK), has outperformed COR. MCK has gained 30% over the past 52 weeks and 25.2% in 2024.

Among the 15 analysts covering the COR stock, the consensus rating is a “Strong Buy.” The mean price target of $274.29 represents a potential upside of 20.5% from current price levels.

On the date of publication,

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