Omnicare and AmerisourceBergen Under Review: Drugs Company Stocks Hit New Highs
LONDON, February 21, 2013 /PRNewswire/ --
Health-care reforms are expected to bring about paradigm shift in healthcare sectors. However, the major companies are well prepared for such changes. Among others, wholesale drug companies are looking to consolidate their positions in order to be better equipped to face challenges. The stocks are trading on their highs on account of the good performance. AmerisourceBergen Corporation (NYSE: ABC) reported good results and a new collaboration with PharMerica. Similarly, Omnicare Inc. (NYSE: OCR) is getting lapped up Hedge Funds. The stocks are expected to keep up the momentum and perform well. StockCall has released free charting and technical research on these two aforementioned companies. Register to read these reports at
AmerisourceBergen Inks Deal with Express Script
AmerisourceBergen's stock hit a new 52-week high. The stock is up 28 percent in the past 52 weeks and seems to maintain the streak. The company also recently announced a 21 cent per share dividend payable on March 4th. Its dividend yield stands at 1.80 percent. AmerisourceBergen reported its fiscal first quarter revenue at $21.5 billion, up 5 percent from $20.3 billion reported a year earlier. Its net income also increased from 62 cents per share to 71 cents apiece. For fiscal 2013, the company expects its earnings to be at $3.16 per share, beating expectations of $3.13 per share. AmerisourceBergen Corporation free technical report can be accessed by signing up at http://www.StockCall.com/ABC022113.pdf
AmerisourceBergen is expected to keep performing well as the company won a major contract with Express Scripts. The company also renewed its deal with PharMerica, which ensure that the company remains the primary vendor for pharmaceuticals for PharMerica. The deal also makes AmerisourceBergen the primary vendor for California-based Amerita.
AmerisourceBergen is expected to face some tailwinds once health reforms kick in. It also has thin margins and therefore has lesser cushion. However, the company stock is expected to perform well despite its recent run up.
Omnicare Garners Hedge Fund Interest
Omnicare reported good results for its fourth quarter. The company reported its EPS at 86 cents per share, up from 56 cents per share it had reported a year earlier. Its revenue stood at $1.53 billion, down 1.74 percent. The stock has been hitting new 52-week highs lately. It had also been garnering good institutional interest as well. Hedge fund Iridian Asset Management augmented its holding of the company's stock. Omnicare's stock is also held by First Pacific Advisors. Hedge Fund buying is generally considered to be a positive sign for the future growth of the stock. Another major holder of the stock is Oaktree Capital Management. Sign up for the free report on Omnicare Inc. at http://www.StockCall.com/OCR022113.pdf
However, Omnicare faces some challenges as well. The company is currently restructuring its business to curtail its costs. Late last year, it closed some of its offices and reduced headcounts. It also changed its top management and made some key appointments. The company deals in pharmaceutical care and is mainly operational in Canada and the U.S. It also operates chronic care facilities.
Omnicare's stock gained 6 percent this year so far and is up 11 percent in the past 12 months. The stock also offers 1.45 percent dividend yield. Omnicare recently announced 14 cents per share in quarterly dividend.
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