Conshohocken, Pennsylvania-based Cencora, Inc. (COR) is a pharmaceutical sourcing and distribution company. With a market cap of approximately $54 billion, Cencora operates through the U.S. Healthcare Solutions and International Healthcare Solutions segments, providing pharmaceutical supplies, healthcare products, and services to various healthcare providers.

The pharma distributor has significantly outperformed the broader market over the past year. COR stock has soared 25.2% over the past 52 weeks and 24.2% on a YTD basis, compared to the S&P 500 Index’s ($SPX) 12.7% gains over the past year and a marginal 8 bps uptick in 2025.

Narrowing the focus, Cencora has also outperformed the industry-focused VanEck Pharmaceutical ETF’s (PPH) 5.6% decline over the past 52 weeks and 1.8% dip in 2025.

Cencora’s stock prices gained 4.7% following the release of its impressive Q2 results on May 7. The company has continued to exert its importance in the pharmaceutical supply chain through its extensive distribution footprint and end-to-end services and solutions. Cencora’s revenues for the quarter surged 10.3% year-over-year to $75.5 billion, beating the Street’s expectations by a notable margin. Meanwhile, its adjusted net income soared 12.7% year-over-year to $862.6 million. Moreover, driven by the company’s extensive share repurchase program, Cencora observed a notable drop in outstanding shares, leading to a 16.3% increase in adjusted EPS to $4.42, exceeding the consensus estimates by 8.3%.

Furthermore, the company raised its full-year adjusted EPS guidance from the previous range of $15.30 to $15.60 to a range of $15.70 to $15.95, boosting investor confidence.

For fiscal 2025, ending in September, analysts expect COR to deliver a 15.1% year-over-year surge in adjusted EPS to $15.84. Moreover, the company has a robust earnings surprise history. It has surpassed the Street’s bottom-line estimates in each of the past four quarters.

Among the 15 analysts covering the COR stock, the consensus rating is a “Strong Buy.” That’s based on 11 “Strong Buys” and four “Holds.”

This configuration has remained consistent in recent months.

On May 8, Baird analyst David Rodgers reiterated an “Outperform” rating on COR, while raising the price target from $314 to $350.

As of writing, Cencora’s mean price target of $318 represents a 14% premium to current price levels, while the street-high target of $355 suggests a staggering 27.2% upside potential.