David Burrows McKesson Corp MCK-N SELL Oct 02, 2024

Healthcare space provides nice combination of growth with stability, in case we get into latter stage of economic cycle. 

Drug distribution is a really low-margin business, which gives you less tolerance throughout your whole business. In US healthcare, they're always looking for ways to squeeze out value for consumers. Not a lot of avenues for growth.

It was getting pricey, so he took profits around $616. He's holding, because of a strong long-term outlook. Are fueled by the weight-loss drugs and other pharmaceuticals, of which they are the largest U.S. distributors.

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.