McKesson Corp (MCK) Buy, Sell or Hold

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McKesson Corp (MCK)

893.39

+2.88 (0.32%)

as of Aug 28, 2026, 8:00:00 pm Market Open.

84 watching

Investor Insights

Aug 30, 2026, 12:00 am

This summary was created by AI, based on 11 opinions in the last 12 months.

McKesson Corp (MCK-N) is recognized as the largest player in an oligopoly of pharmaceutical distributors in the U.S., commanding a remarkable 90% market share among the top three companies. The company has demonstrated a strong track record, with a total return of 17.5% per annum over the past decade, driven by a robust dividend growth rate of 15% annually and consistent buybacks of 6% per year. Despite operating on thin margins, McKesson efficiently manages costs and capitalizes on the essential nature of medicine distribution. The recent trend of shifting investments towards growthier sectors has slightly impacted the healthcare industry, but experts remain optimistic about McKesson's stability, growth potential, and the upcoming spin-off of its medical/surgical unit, which is anticipated to unlock hidden value.

Consensus

Positive

Valuation

Fair Value

Similar

CardinalHealth,CAH

PAST TOP PICK

(A Top Pick Oct 28/22, Up 11%)

Still likes it. The drug sector remains strong given an aging population and a flurry of new drugs.

PAST TOP PICK

(A Top Pick Sep 09/22, Up 21%)

One of the largest distributors of pharmaceuticals in USA.
Expecting to grow earnings 12-15% annual.
Trading at good share price for long term investors.
Beneficiary of domestic spending.
Will continue to hold.

TOP PICK

Earnings are growing about 12-14% per year, revenues over 10%. Trades about 15x earnings. Exited European operations, so now a pure play on a domestic company and a hedge against international exposure. Yield is 0.59%.

(Analysts’ price target is $468.64)

TOP PICK

Large drug distributor with 1/3 drug distribution business in USA. Excellent prospects going forward with strong R & D potential. Main company for US government for items like Covid-19 vaccines. Demand for new drugs will not go away. Expecting growth of dividend.

BUY

New entry into portfolio. One of three main pharmaceutical distributors. Trading at 15x multiple of earnings. Growing at 10% per year. Have existed to European business (good for US dollar exposure).

DON'T BUY

Political lightning rod of distributors, so he's on the sidelines. Windfalls from Covid vaccine distribution, but this will dissipate. Price, time, volume are subject to inflationary pressures.

COMMENT

Peer Amerisource missed their report today and analysts may downgrade the entire group, which trades together. MCK is best in class, but let's see what happens tomorrow with downgrades.

BUY

A Covid vaccine distribution play It's the biggest and best-run drug distributor. They were instrumental in getting out the swine flu vaccine. Trades at 10x at 2021's estimates. Has a lot of room to run. MCK is part of an oligopoly in this industry and it's the best choice within this oligopoly. MCK has distributed for the CDC before, so they have a track record.

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Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK

(A Top Pick Aug 04/20, Down 7.7%)Stockchase Research Editor: Michael O'Reilly We are recommending to cover MCK as it has violated our stop-loss. We are being disciplined and will look for better opportunties.

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Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK

Stockchase Research Editor: Michael O'Reilly The company produces and distributes medical devices in the US and internationally. They are also involved in pharma distribution and community based oncology and other specialty practices. Although there was a slight slowdown in Q1 earnings growth due to the pandemic shutdowns, earnings and revenues still beat expectation. Although the dividend is not huge, it is growing -- up 250% since 2008 -- and the payout ratio is less than 35%. We like the technical setup presently and see a buy here as having upside towards $175 -- 11% upside. We would use $145 as a stop loss. Yield 1.05% (Analysts’ price target is $174.20)

DON'T BUY

Not a big fan of the drug distributors. Generics pricing headwind, costs, political overhang, there is a number of fundamental flags for them. He would stay away from this. They don't buy declining charts. They want to see strong fundamentals confirmed by positive price action. Loves healthcare but prefers a broad basket of healthcare funds. Biotechs are a little weaker but devices and managed care are fantastic. Healthcare will underperform, but still go up, they like that kind of quality trade in a market that they are a little suspect of.

COMMENT

He exited. They distribute drugs, a price x volume business, with retail pharmacy (Rexall) outlets in Canada as well as another chain in Germany. The stock is cheap, but the overall business is in the process of changing as the discussion in the States shifts from high drug prices to rebates. That's why he's on the sidelines of the drug distributors. Also, branded drug prices are rising 6-8%, but generics are falling 8-10% annually--that's begative. He's on the sidelines of this sector. Keep an eye on generic pricing.

DON'T BUY

This has been a very successful operation. The 5th largest corporation in the US, and doing extremely well. 60 Minutes recently did a profile on their distribution of opioids to pharmacies/dispensaries where the DVA thought they should have known there were some orders that were not legitimate and were going to cartels and illegal drug distribution networks. He thinks this has some legs, so he would not venture into this company.

COMMENT

Why is this down?60 Minutes did a story on the 3 large drug distributors, Mckesson, Cardinal Health (CAH-N) and Amerisourcebergen (ABC-N), that they are contributing to the opioid crisis. Or it could be that there hasn’t been much earnings growth over the past year because of pricing pressure, especially on generic drugs. He is bullish on drug distributors over the long run, and doesn’t think these stocks are going to turn around anytime soon.

DON'T BUY

He sold last year. They are one of the bigger drug distributors. They own Rexall. They diversified their business. They are mostly a wholesale drug distributor, taking the drug from the manufacturer to the hospital or retail pharmacy. He is bothered by generic pricing. Drug spending is about 10% of healthcare expenditures. The next leg of political rhetoric is the pharmacy benefit managers and distributors. This is his favourite, but he is on the sidelines.

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