We recently published a list of Top 10 Stocks Analysts are Watching as AI Selloff Deepens. In this article, we are going to take a look at where Cencora, Inc. (NYSE:COR) stands against other top stocks analysts are watching as AI selloff deepens.
Major AI stocks are struggling to gain traction as investors rethink their strategies amid concerns of a slowdown in spending. Even top tech bulls are starting to use the word “bubble” for the AI trade. Gene Munster, Deepwater Asset Management managing partner, said in a latest program on CNBC that he believes we still have two years of the AI bull run before the bubble bursts.
“From a high-level perspective, I always return to the fundamentals as a tech investor. The fundamentals of these companies remain strong. I predict we have two good bullish years ahead before a spectacular bubble burst. When I see this, it shakes my confidence, but if I stay focused on the fundamentals, I still believe this trade will play out.”
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For this article, we picked 10 stocks analysts are currently talking about. With each company we have mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Dozens of pharmaceutical capsules piled on top of one another to show the scale of the company’s drug contributions to the industry.
Cencora, Inc. (NYSE:COR)
Number of Hedge Funds Investors: 45
Josh Brown, CEO of Ritholtz Wealth Management, in a latest program on CNBC, talked about several top healthcare stocks. Cencora, Inc. (NYSE:COR) tops his list and here is how the analyst made the bull case for the drug wholesale company:
“Many of you know this stock—but you remember when its ticker was ABC—and we used to call it AmerisourceBergen. Very 20th-century name. Cencora is much sexier—much more modern. But basically, it’s a pharmaceutical distribution company. RSI of 63—not yet overbought. It’s within 3% of a 52-week high. Stock looks outstanding—up 2% during the volatility of this week. 15 times forward P—expecting 12% earnings growth. That’s a great setup for something contrarian.”
TimesSquare Capital U.S. Mid Cap Growth Strategy stated the following regarding Cencora, Inc. (NYSE:COR) in its Q3 2024 investor letter:
“Our preferences among Health Care stocks are those companies providing novel therapies for unmet needs that deserve premium pricing, or specialized service providers. Cencora, Inc. (NYSE:COR), a pharmaceutical products distributor, had a flat return due to uneven fiscal third quarter results. US health care revenues grew for the quarter, however, international fell short. Gross margins deteriorated due to a higher mix of GLP-1s.”
Overall, COR ranks 10th on our list of top stocks analysts are watching as AI selloff deepens. While we acknowledge the potential of COR as an investment, our conviction lies in the belief that under the radar AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than COR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.