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.
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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
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
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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