Hidden Gem Investing — AmerisourceBergen

Pharmacy stocks are in the news. CVS cut 5,000 jobs. Rite Aid shares are rallying due to a short squeeze. And Walgreens stock is yielding 6% in annual dividends.

Today’s article covers none of this.

Instead, we’re looking at one of the best marketing-beating pharmacy stocks you’ve never heard of — AmerisourceBergen Corporation ($ABC).

AmerisourceBergen is the “picks and shovels” pharmacy play.

The stock is a long-term market-beater, trading at reasonable valuations.

In today’s article, we’ll look at AmerisourceBergen’s business model. And why this could be a great “hidden gem” investment.

What Does AmerisourceBergen Do?

AmerisourceBergen is a pharmaceutical distribution company. They work with more than 1,500 drug manufacturers, and tens of thousands of healthcare providers, to makes sure than essential medications are readily available.

AmerisourceBergen processes approximately 20% of all pharmaceuticals sold and distributed throughout the United States.

They supply medicine to hospitals, clinics, independent pharmacies, and chain retailers like Walgreens. If you get a prescription filled, there’s a 1-in-5 chance AmerisourceBergen supplied it.