Here's How Much a $1000 Investment in AmerisourceBergen Made 10 Years Ago Would Be Worth Today
For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in AmerisourceBergen (ABC) ten years ago? It may not have been easy to hold on to ABC for all that time, but if you did, how much would your investment be worth today?
AmerisourceBergen's Business In-Depth
With that in mind, let's take a look at AmerisourceBergen's main business drivers.
Chesterbrook, PA-based AmerisourceBergen is one of the world’s largest pharmaceutical services companies, which focuses on providing drug distribution and related services to reduce health care costs and improve patient outcomes.
The company reports through two segments – Pharmaceutical Distribution and Other. The Pharmaceutical Distribution business includes the operations of AmerisourceBergen Drug Corporation (ABDC) and AmerisourceBergen Specialty Group (ABSG). The segment services healthcare providers in the pharmaceutical supply channel. The ABSG division provides pharmaceutical distribution and other services mainly to physicians, who specialize in a variety of diseases, especially oncology, and to other health care providers, including dialysis clinics. The ABDC division is involved in the distribution of branded pharma drugs and generic drugs, over-the-counter healthcare products, home healthcare supplies and equipment and related services to a range of healthcare providers.
The “Other” segment consists of AmerisourceBergen Consulting Services (ABCS), World Courier and MWI Veterinary Supply. The ABCS business provides commercialization support services to pharmaceutical and biotech manufacturers.
Segment Realignment Update
It is worth mentioning that AmerisourceBergen made a strategic evaluation of its reporting structure in order to represent its expanded international presence because of the June 2021 buyout of Alliance Healthcare. Consequently, starting from the first quarter of fiscal 2022, the company has realigned its reporting structure under two reportable segments — U.S. Healthcare Solutions and International Healthcare Solutions.
FY22 at a Glance
Total revenue in fiscal 2022 came in at $238.59 billion. The U.S. Healthcare Solutions contributed to 88.9% of net revenues in fiscal 2022. The International Healthcare Solutions segment accounted for 11.1% of net revenues.
Bottom Line
While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in AmerisourceBergen ten years ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in July 2013 would be worth $3,267.68, or a gain of 226.77%, as of July 13, 2023, and this return excludes dividends but includes price increases.
In comparison, the S&P 500 gained 166.17% and the price of gold went up 46.52% over the same time frame.
Analysts are anticipating more upside for ABC.
Over the past year, AmerisourceBergen outperformed its industry. The company exited the fiscal second quarter on a strong note, wherein both earnings and revenues beat the consensus mark. The company witnessed robust segmental performance in the quarter under review. Higher gross and operating income is a positive. The company is well-positioned to deliver long-term sustainable growth on the back of its diverse and inclusive teams. A strong fiscal 2023 outlook instills optimism in the stock. A strong solvency position bodes well. AmerisourceBergen’s fiscal second-quarter revenues were better than expected. Yet, AmerisourceBergen continues to face headwinds like conversion of branded drugs and lower price generics. Cut-throat competition in the MedTech space and economic stagnation amid the pandemic remain woes.
The stock has jumped 6.56% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 2 higher, for fiscal 2023; the consensus estimate has moved up as well.
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
AmerisourceBergen Corporation (ABC) : Free Stock Analysis Report
