Key Takeaways AMN reported Q4 EPS of 22 cents, down 70.7%, while revenues rose 1.8% year over year.Nurse and Allied Solutions' revenues rose 8%, aided by $124M in labor disruption events.AMN expects Q1 2026 revenues of $1.225B-$1.240B, up 78%-80% from last year.AMN Healthcare Services, Inc. (AMN) delivered adjusted earnings per share (EPS) of 22 cents in the fourth quarter of 2025, which declined 70.7% year over year. The figure was in line with the Zacks Consensus Estimate.GAAP loss per share for the quart ...

Core Viewpoint - McKesson Corporation's shares have surged approximately 16 percent in morning trading, reaching $956.61, attributed to the positive impact of its recent third-quarter financial results announcement [1][2]. Group 1: Stock Performance - McKesson's shares are currently trading at $956.61, reflecting an increase of 16.27 percent or $133.76 [1]. - The stock opened at $867.97 and has peaked at $964.94 during the trading session [1]. - Over the past year, McKesson's stock has fluctuated between $570.51 and $964.94 [1]. Group 2: Financial Results - The company's third-quarter earnings rose to $1.186 billion, equating to $9.59 per share, compared to $879 million or $6.95 per share in the previous year [2].

Q2 FY26 summary | Q2 FY26 Q2 FY25 Y/Y | | | --- | --- | | Revenue $65.6 billion $55.3 billion 19 % | | | Operating earnings $707 million $549 million 29 % | | | Non-GAAP operating earnings $877 million $635 million 38 % | | | Net earnings attributable to Cardinal Health, Inc. $467 million $400 million 17 % | | | Non-GAAP net earnings attributable to Cardinal Health, Inc. $624 million $468 million 33 % | | | Effective Tax Rate 25.2 % 21.4 % | | | Non-GAAP Effective Tax Rate 21.4 % 21.4 % | | | Diluted EPS at ...

Core Insights - Investors should conduct a thorough review of a company's financial background rather than relying solely on real-time trading numbers, especially in a volatile market [1] - The interest coverage ratio is a critical indicator of a company's ability to meet its debt obligations, particularly in a tighter financial environment [2][4] Financial Metrics - Companies like Casey's General Stores, Brinker International, Cardinal Health, and Flowserve have strong interest coverage ratios, indicating their capacity to service debt [3] - The interest coverage ratio is calculated as Earnings before Interest & Taxes (EBIT) divided by Interest Expense, providing insight into a company's financial stability [5] - A ratio below 1 indicates potential default risk, while a higher ratio suggests a company can withstand financial challenges [7] Investment Strategy - A favorable investment strategy includes selecting stocks with an interest coverage ratio above the industry average, a Zacks Rank of 1 or 2, and a VGM Score of A or B [8][11] - Stocks meeting these criteria are likely to outperform in various market conditions [11] Company Highlights - Casey's General Stores has a Zacks Rank of 1, with a trailing four-quarter earnings surprise of 24.1% and projected sales and EPS growth of 8.8% and 18.8%, respectively, leading to a 44.6% stock increase over the past year [10][12] - Cardinal Health holds a Zacks Rank of 2, with a trailing earnings surprise of 9.4% and projected sales and EPS growth of 16.4% and 21.5%, respectively, resulting in a 71.5% stock surge [12][13] - Brinker International, also with a Zacks Rank of 2, has a trailing earnings surprise of 8.2% and projected sales and EPS growth of 7.7% and 18.7%, but its stock has declined by 16.6% [13][14] - Flowserve, with a Zacks Rank of 2, shows a trailing earnings surprise of 10.5% and projected sales and EPS growth of 4.6% and 31.9%, leading to a 26.2% stock increase [14][15]

Core Viewpoint - McKesson Corporation (MCK) is perceived to receive insufficient attention from investors, particularly those focused on value investing, despite possessing characteristics of an ideal value investment [1] Company Characteristics - McKesson exhibits all the traits of a strong value investment opportunity, making it attractive for investors seeking undervalued stocks [1] Analyst Background - The analyst has over six years of experience in the investment sector, with a background in equity analysis across various industries, emphasizing the importance of understanding the narratives behind financial statements [1]

Summary of Healthcare Services Conference Call Industry Overview - The conference call focused on the **Healthcare Services** industry, particularly the **Managed Care** sector and its outlook for 2026, highlighting potential margin improvements and policy clarity as positive factors for growth [4][10][11]. Key Points and Arguments Managed Care - **Earnings Recovery**: Most Managed Care Organizations (MCOs) are expected to reach trough earnings in 2026, with potential upward revisions thereafter. Medicare Advantage (MA) is anticipated to drive margin upside, while skepticism remains around Medicaid and ACA Exchanges until MCOs demonstrate margin improvements [5][12]. - **Enrollment Trends**: MCOs are targeting enrollment declines to improve margins, with companies like CVS, ELV, and UNH focusing on this strategy. Conversely, HUM is positioned for membership growth [12][52]. - **Regulatory Environment**: The 2026 midterms are expected to create gridlock, reducing the likelihood of major policy changes outside of CMS rulemaking, which could stabilize the operating environment for MCOs [5][12]. Pharmaceutical Distributors - **Strong Fundamentals**: The current strength in results for pharmaceutical distributors is attributed to stable generic pricing, MSO growth, and a robust specialty pipeline. Companies like McKesson (MCK) and Cencora (COR) are favored due to their strong specialty businesses [9][16]. - **M&A Activity**: Distributors led M&A activity in 2025, with expectations for continued integration and organic investment in MSO capabilities in 2026 [25]. Labs and Healthcare Facilities - **Demand Trends**: Labs are expected to see steady demand trends with a healthy backdrop in diagnostics. Regulatory uncertainties may impact pricing and mix development, but overall operating conditions are stable [9][12]. - **Facility Performance**: Healthcare facilities are positioned to benefit from favorable utilization trends, although policy uncertainty remains a concern for future earnings growth [12][16]. Additional Insights - **Investment Picks**: Top investment picks include UnitedHealth (UNH) and CVS Health (CVS) for their cleaner stories, while Cigna (CI) is seen as attractive but with more complexities [5][14][17]. - **Margin Pressures**: Medicaid remains a challenge, with companies like ELV and UNH guiding for margin pressure in 2026. Investment income is also expected to be a headwind for managed care [5][12]. - **Market Dynamics**: The ACA Exchanges are viewed as a swing factor for MCOs, with a wide range of outcomes expected due to potential shifts in market morbidity [12][43]. Conclusion The healthcare services industry is navigating a complex landscape with potential for margin recovery and growth driven by Medicare Advantage, while facing challenges in Medicaid and ACA Exchanges. The focus on regulatory clarity and strategic M&A activity will be crucial for companies as they prepare for 2026 and beyond.

Cencora ( COR ) hasn’t received much coverage since early August, despite its growing relevance and strong fundamentals. The company remains largely overlooked by investors, yet I view it as one of the most attractive names in theHi there! I’m Narek, and I’ve been in the investment world for over six years. I started out as an equity analyst at European banks, digging into reports and learning how to spot value in the markets. I’ve worked across sectors — from telecom to industry — and found that behind eve ...

Core Viewpoint - McKesson (MCK) has received an upgrade to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - Rising earnings estimates for McKesson suggest an improvement in the company's underlying business, likely leading to an increase in stock price [5][10]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7][9]. - Only the top 5% of Zacks-covered stocks receive a "Strong Buy" rating, indicating superior earnings estimate revisions [9][10]. Recent Performance of McKesson - McKesson is expected to earn $38.05 per share for the fiscal year ending March 2026, with no year-over-year change, but the Zacks Consensus Estimate has increased by 2.3% over the past three months [8].

Core Viewpoint - Cardinal Health (CAH) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - Rising earnings estimates for Cardinal suggest an improvement in the company's underlying business, likely leading to an increase in stock price [5][10]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [7][9]. - Cardinal's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10]. Earnings Estimate Revisions for Cardinal - Cardinal is expected to earn $9.37 per share for the fiscal year ending June 2026, with no year-over-year change, but the Zacks Consensus Estimate has increased by 4.6% over the past three months [8].

Group 1 - Cencora, Inc. (NYSE: COR), previously known as AmerisourceBergen, is identified as a leading U.S. pharmaceutical distributor [1] - The company is favored for its stable business model and strategic investments in digital platforms and specialty medications [1] - A Buy rating is initiated for the company based on its current positioning and future potential [1]