Stuart Hinshelwood McKesson Corp MCK-N TOP PICK Feb 18, 2014

Earnings today impressed the market. Trades around 16-17x forward PE, 11-12% EPS growth rate. PEG ratio is 1.4x, pretty good. Great, long-term secular growth name. Few competitors plus 33% market share means substantial pricing leverage.

US healthcare has been a minefield. Management lowered guidance, stock drew down sharply. But then it had a great quarter and shares rallied. #1 market share. Demographic and morbidity tailwinds. Still likes.

Growing at double-digits and trading around 19x PE. Much growth, a third, comes from the weight-loss drugs, mostly from LLY and Novo Nordisk. An aging population will need more medications.

15% EPS growth rate, but paying only 17x forward PE. So PEG ratio is 1.1x, fairly cheap. Long-term, aging demographic trends give long runway for growth. 200-day and 200-week MAs are pushing higher. Outpacing S&P 500 since early 2019.

It is a large distributer of drugs which is a volume based business and has low margins. It is not expensive.

Certainly some stocks are less vulnerable to issues involving tariffs. What comes to mind are healthcare companies. You could look at some of the beaten-down companies that really didn't do well last year, as they're doing quite well today. Try this name, which he owns.

One of the biggest distributors of branded or generic drugs, and offers surgical supplies. He expects this sector to boom if Trump messes with the pharma supply chain.

Is surprised the stock hasn't split. Is one of the strongest stocks out there and plays a valuable role in society, though Washington disagrees.

Aging demographics will help. Rising 200-day and 200-week MAs. Beat last quarter, raised full-year guidance. 20x forward PE for 14-15% growth rate, a great PEG ratio.

A volume business. Competitive advantage is not huge. Has done a great job. Don't be in any rush to get rid of it. Slow and steady.