Great Time To Buy AmerisourceBergen

We bought AmerisourceBergen (ABC) stock today. We added this one to our Market Beating Stocks Watch List over the weekend and decided to jump in after seeing signs that momentum is starting to return. Now is a good time to buy as valuations are as good as they have been in quite some time for drug companies. The stock trades at a PE of only 15 which is at a discount to the market. Traditionally, pharmaceutical companies typically trade at a premium to the overall market but have been depressed over the last year due to concerns with potential healthcare legislation. The odds of legislation passing have dwindled somewhat, but even if that happens we think the market has already more than priced in any negative impact into stock prices. The short and skinny, now is a good time to buy pharmaceuticals particularly since momentum is now starting to return.