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A Health Care Reform Winner
By: Sam Collins
AmerisourceBergen Corp. (NYSE: ABC ) - This pharmaceutical services company provides drug distribution and related services.
Earnings growth of more than 32% has made ABC an institutional favorite. S&P says that ABC should benefit from health care reform and "likely will gain share in the long term." S&P maintains a "four-star buy" with a 12-month target of $36.
The stock has been in a steady bull channel supported by the 50-day moving average for over a year. It is up more than 80% since its low in March 2009, and now it appears to be getting stronger as the stochastic is turning up.
Following a consolidation within the familiar outlines of a "cup," a breakout at $33 yields a trading target of $39.
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