PharMerica Corporation (PMC) After satisfying the pharmacy needs of nursing facilities for 30 years, PMC now operates over 100 pharmacies that service hundreds of thousands of nursing facility residents. PharMerica has a singular service focus and collaborates with corporate clients to control costs and provide quality care and to comply with regulations that constantly change.

PMC provides quality care and 24/7 access to its pharmacists to ensure timely medication delivery. To differentiate itself from the competition, PharMerica customizes its services to each nursing facility client. PMC provides a dedicated client team to meet each client’s unique needs. In its monthly account reports and quarterly business reviews, PharMerica walks each client through detailed pharmacy spend and utilization reports and uncovers cost-containment opportunities. PMC provides additional performance data with detailed daily and weekly analytics.

PharMerica customizes its reporting to each client organization’s specific structural needs, and analyzes each facility’s drug spend and utilization by category; Medicare Part D non-covered charges, anti-psychotic usage, and other medication metrics.

As pharmaceutical costs continue to skyrocket, medical facilities will continue to turn to PharMerica as a company that can curtail those costs and restore profitability.

Technical Analysis: PharMerica Corporation (PMC)

With relatively stable pricing over the past three years, PMC rose from $28.39 to $36.67 and fell to its current price of $23.35. At today’s opening price, PMC may be a bargain considering its previous recent high and its current position against its competitors.

Two charts are provided below. The first shows PharMerica’s last three years as the company bottomed at $19.20 before starting its upward climb back toward its previous high.

With the exception of six trading spikes over this 3-year period, PMC’s volume has remained relatively stable.

Should PharMerica move from its current price of $23.35 back to its high of $36.67 over the remainder of the year, the eight-month return would be 64% for an annualized return of 96%.

The second chart displays PharMerica’s last year as the company bottomed at $19.20 before reaching a high of $28.71.

PMC is trending back up. With an attractive price opening price today, PharMerica may be a lucrative short-term hold in a balanced portfolio. PMC trading volume is steady with small daily movements in price which makes is less risky than most of its competitors in the short-term.

PharMerica’s Earnings Per Share were $0.25. PMC’s adjusted EPS was $0.58. PharMerica forecasts a 2017, EPS of $1.95.

While PharMerica earned an estimated $534,400,000, in 2016, PMC forecasts Revenues to come in between $2.3 Billion and $2.4 Billion in 2017.

On April 12, 2017, PMC closed at $23.35 up $0.10 to mark a 0.43% single day gain while seventeen of its eighteen closest competitors lost between $.09 and $1.87 in the day’s trading.

With its ability to compete, and its stable pricing, PharMerica has a high reward potential in relation to both its short-term and long-term risk.