Investor Insights

This summary was created by AI, based on 10 opinions in the last 12 months.

McKesson Corp (MCK-N) is a leading global healthcare company with a strong position in the US market for pharmaceutical distribution. The company operates in an oligopoly with 2 other major players, and its business has a large moat due to economies of scale. With consistent earnings growth and stable operations, McKesson is seen as a solid long-term investment by experts. The company's recent acquisitions, such as Rexall, indicate its strategic focus on expansion and growth in the pharmaceutical industry.

Consensus
Positive
Valuation
Fair Value
HOLD
McKesson Corp

Still likes it. Room to grow. Sees about 10% earnings growth. Prescription drug usage in US continues to rise. Only 3 players, with 90% market share. See his Top Picks.

wholesale distributors
WEAK BUY
McKesson Corp

It reports Wednesday.  He likes it. They typically under-promise and over-deliver, though nothing is guaranteed.

wholesale distributors
BUY
McKesson Corp

Has sold share, but wish that had held on to them. Very low margins, but operate in oligopoly. Excellent prospects for the future of business. Large moat around business with economies of scale. Disciplined management team with continued growth in earnings per share. Good for long term investors. 

wholesale distributors
TOP PICK
McKesson Corp

About $305B USD expected revenue for 2024. Largest customers are CVS and WMT. Middleman between end-retail pharmacies and medical product companies. Operates in a virtual triopoloy. Long term, demographics will lead to greater spending. 

Increased share buybacks. Beat topline and bottom line expectations on latest quarter, raised guidance. Chart's trending higher, it's the best. Outpacing S&P 500 since early 2019. Earnings growth rate of about 10%. Solid healthcare name. Yield is 0.5%.

(Analysts’ price target is $506.44)
wholesale distributors
TOP PICK
McKesson Corp

Stock is not a household name, but Rexall is, which MCK just bought. Core business is wholesale drug distribution in US. Negotiates bulk drug purchases and distributes them. Low margin, but high inventory turnover, so high ROE. Stable, non-cyclical. In oligopoly with 2 others and a combined 90% market share. Non-discretionary. 

Chart looks nice, undemanding multiple of 15.5x earnings. Has grown at 10% compound rate over the last decade, well positioned to continue this. Yield is 0.5%.

(Analysts’ price target is $501.00)
wholesale distributors
TOP PICK
McKesson Corp

Global leader. Operates in a virtual tri-opoly. Significant leverage in negotiating supply, which gives predictable cashflow. Aging population will increase volumes. Almost 60% of all Americans use at least 1 prescription drug, expected to rise. Increased demand for diabetes and weigh-loss drugs. 

Beat on top and bottom lines, increased guidance. Share price above rising moving averages. Outperforming broader index. Forecast 10% earnings growth going forward. Yield is 0.55%.

(Analysts’ price target is $487.63)
wholesale distributors
BUY
McKesson Corp

Though drug companies are a target of politicians citing high drug prices, it keeps printing cash. For now, it's a cheap stock that won't be hurt by higher interest rates.

wholesale distributors
PAST TOP PICK
McKesson Corp
(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.

wholesale distributors
PAST TOP PICK
McKesson Corp
(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. 

wholesale distributors
TOP PICK
McKesson Corp

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)
wholesale distributors
TOP PICK
McKesson Corp
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.
wholesale distributors
BUY
McKesson Corp
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).
wholesale distributors
DON'T BUY
McKesson Corp
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.
wholesale distributors
COMMENT
McKesson Corp
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.
wholesale distributors
BUY
McKesson Corp
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.
wholesale distributors
Showing 1 to 15 of 44 entries

McKesson Corp(MCK-N) Rating

Ranking : 4 out of 5

Bullish - Buy Signals / Votes : 5

Neutral - Hold Signals / Votes : 1

Bearish - Sell Signals / Votes : 0

Total Signals / Votes : 6

Stockchase rating for McKesson Corp is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

McKesson Corp(MCK-N) Frequently Asked Questions

What is McKesson Corp stock symbol?

McKesson Corp is a American stock, trading under the symbol MCK-N on the New York Stock Exchange (MCK). It is usually referred to as NYSE:MCK or MCK-N

Is McKesson Corp a buy or a sell?

In the last year, 6 stock analysts published opinions about MCK-N. 5 analysts recommended to BUY the stock. 0 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for McKesson Corp.

Is McKesson Corp a good investment or a top pick?

McKesson Corp was recommended as a Top Pick by on . Read the latest stock experts ratings for McKesson Corp.

Why is McKesson Corp stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is McKesson Corp worth watching?

6 stock analysts on Stockchase covered McKesson Corp In the last year. It is a trending stock that is worth watching.

What is McKesson Corp stock price?

On 2024-04-15, McKesson Corp (MCK-N) stock closed at a price of $526.7.