Pharmerica Stock Remains A Buy

Pharmerica Corp. (NYSE:PMC) shares have been advancing since originally being featured as a momentum stock in mid-July, climbing from $21 to just a pinch below $25, a solid short-term return of more than 15%.

Much of the recent price strength comes on the heels of this Zacks #1 rank stocks impressive second-quarter results, reported on Aug 8. Revenue skyrocketed to $486.3 million, up from $173.4 million in the same period last year. Net income surged to $2.9 million, a big jump from a loss of $400,000 last year. This produced earnings of 22 cents per share, ahead of analyst estimates of 19 cents per share.

Analysts are bullish on the Pharmerica’s growth trajectory, with the next-year estimate pegged at $1.13 per share, up from $1.05 just 7 days ago. This would represent a 34% increase from the current-year year estimate of 84 cents. Take a look at the chart below.

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