Cencora, Inc. (COR) Hit a 52 Week High, Can the Run Continue?

Shares of Cencora (COR) have been strong performers lately, with the stock up 13.4% over the past month. The stock hit a new 52-week high of $256.81 in the previous session. Cencora has gained 13.5% since the start of the year compared to the 0% move for the Zacks Medical sector and the -6.6% return for the Zacks Medical Services industry.What's Driving the Outperformance?The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on November 6, 2024, Cencora reported EPS of $3.34 versus consensus estimate of $3.21 while it beat the consensus revenue estimate by 1.76%.For the current fiscal year, Cencora is expected to post earnings of $15.09 per share on $318.09 billion in revenues. This represents a 9.67% change in EPS on an 8.21% change in revenues. For the next fiscal year, the company is expected to earn $16.52 per share on $339.6 billion in revenues. This represents a year-over-year change of 9.52% and 6.76%, respectively.Valuation MetricsCencora may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.Cencora has a Value Score of A. The stock's Growth and Momentum Scores are A and B, respectively, giving the company a VGM Score of A.In terms of its value breakdown, the stock currently trades at 16.9X current fiscal year EPS estimates, which is not in-line with the peer industry average of 17.8X. On a trailing cash flow basis, the stock currently trades at 12.8X versus its peer group's average of 10.6X. Additionally, the stock has a PEG ratio of 1.62. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.Zacks RankWe also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Cencora currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Cencora passes the test. Thus, it seems as though Cencora shares could still be poised for more gains ahead.How Does COR Stack Up to the Competition?Shares of COR have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Medpace Holdings, Inc. (MEDP). MEDP has a Zacks Rank of # 2 (Buy) and a Value Score of C, a Growth Score of A, and a Momentum Score of D.Earnings were strong last quarter. Medpace Holdings, Inc. beat our consensus estimate by 8.66%, and for the current fiscal year, MEDP is expected to post earnings of $12.42 per share on revenue of $2.11 billion.Shares of Medpace Holdings, Inc. have gained 5.1% over the past month, and currently trade at a forward P/E of 28.21X and a P/CF of 34.78X.The Medical Services industry may rank in the bottom 64% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for COR and MEDP, even beyond their own solid fundamental situation.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Cencora, Inc. (COR): Free Stock Analysis Report Medpace Holdings, Inc. (MEDP): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks