Will AmerisourceBergen (NYSE:ABC) price continue to rise in December?
 | By Raphi Shpitalnik | Macroaxis Story |
As many millenniums are trying to avoid healthcare space, it makes sense to go over AmerisourceBergen a little further and try to understand its current market patterns. As expected, AmerisourceBergen is starting to reaffirm its true potential as investors are becoming more and more confident in the future outlook. The returns on investing in AmerisourceBergen and the market returns of the last few months appear uncorrelated. The appearance of strong forward indicators of the company suggests a short-term price swing for investors of AmerisourceBergen. AmerisourceBergen is scheduled to announce its earnings today. The next earnings report is expected on the 4th of February 2021.
Macroaxis uses a strict editorial review process to publish stories and blog posts. Our publishers support our company and may receive a small commission when the partner links or references are utilized. Commissions do not affect the opinions or evaluations of our editorial team. The information our editors and media partners deliver is confidential and licensed for your sole use as a Macroaxis user. We reserve all rights to the content of this article, and therefore copying or distributing this story in whole or in part is strictly prohibited.
Reviewed by Michael Smolkin
AmerisourceBergen's average rating is Hold from 9 analysts. Do analysts base this consensus on technical analyses? We know that typical technical analysis utilizes price momentum, patterns, and trends looking at historical prices. It aims to identify signals based on AmerisourceBergen market sentiment investors' perception of the future value of AmerisourceBergen. Let us look at a few aspects of AmerisourceBergen technical analysis. Earning per share calculations of AmerisourceBergen is based on official Zacks consensus of 7 analysts regarding AmerisourceBergen's future annual earnings. Given the historical accuracy of 98.9%, the future earnings per share of the company is estimated to be 7.8743 with the lowest and highest values of 7.84 and 7.89, respectively. Please note that this consensus of annual earnings estimates for the firm is an estimate of EPS before non-recurring items and including employee stock options expenses.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as AmerisourceBergen. Your research has to be compared to or analyzed against AmerisourceBergen's peers to derive any actionable benefits. When done correctly, AmerisourceBergen's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in AmerisourceBergen.
Using predictive technical analysis, we can analyze different prices and returns patterns and diagnose historical swings to determine the real value of AmerisourceBergen. In general, sophisticated investors focus on analyzing AmerisourceBergen stock price patterns and their correlations with different microeconomic environment and drivers. They apply predictive analytics to build AmerisourceBergen's daily price indicators and compare them against related drivers such as momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional technical analysis and fundamental analysis, we attempt to find the most accurate representation of AmerisourceBergen's intrinsic value. In addition to deriving basic predictive indicators for AmerisourceBergen, many experienced traders also check how macroeconomic factors affect AmerisourceBergen price patterns. Please read more on our technical analysis page or use our predictive modules below to complement your research.
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of AmerisourceBergen's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
How important is AmerisourceBergen's Liquidity
AmerisourceBergen financial leverage refers to using borrowed capital as a funding source to finance AmerisourceBergen ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. AmerisourceBergen financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to AmerisourceBergen's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of AmerisourceBergen's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between AmerisourceBergen's total debt and its cash.
Breaking down AmerisourceBergen Further
The entity has a beta of -0.1161. Let's try to break down what AmerisourceBergen's beta means in this case. As returns on the market increase, AmerisourceBergen returns are expected to increase less than the market. However, during the bear market, the loss on holding AmerisourceBergen will be expected to be smaller as well. The beta indicator helps investors understand whether AmerisourceBergen moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if AmerisourceBergen deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns. The current indifference towards the small price fluctuations of AmerisourceBergen could raise concerns from investors as the firm it trading at a share price of 105.42 on slow start in volume. The company management teams did not add any value to AmerisourceBergen investors in October. However, most investors can still diversify their portfolios with AmerisourceBergen to hedge their inherited risk against high-volatility market scenarios. The stock standard deviation of daily returns for 30 days investing horizon is currently 1.52. The below-average Stock volatility is a good sign for longer-term investment options and for buy-and-hold investors.
Building efficient market-beating portfolios requires time, education, and a lot of computing power!
The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.
Try AI Portfolio ArchitectEditorial Staff
This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of AmerisourceBergen. Please refer to our Terms of Use for any information regarding our disclosure principles.