McKesson Corp

MCK-N

Analysis and Opinions about MCK-N

Signal
Opinion
Expert
TOP PICK
TOP PICK
August 4, 2020
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)
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McKesson Corp (MCK-N)
August 4, 2020
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
DON'T BUY
January 8, 2019
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.
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McKesson Corp (MCK-N)
January 8, 2019
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
COMMENT
December 3, 2018
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.
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McKesson Corp (MCK-N)
December 3, 2018
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
DON'T BUY
December 19, 2017

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.

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McKesson Corp (MCK-N)
December 19, 2017

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
COMMENT
October 26, 2017

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.

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McKesson Corp (MCK-N)
October 26, 2017

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
DON'T BUY
September 14, 2017

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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McKesson Corp (MCK-N)
September 14, 2017

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.

COMMENT
COMMENT
September 6, 2017

He looked at this very intensely a couple of years ago, and decided not to invest. There was no question that the generic inflation trend that had propelled the bottom line, the margin, in many of these companies was coming to an end. Since then, many of these companies have had to deal with significant headwinds. Prefers others.

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McKesson Corp (MCK-N)
September 6, 2017

He looked at this very intensely a couple of years ago, and decided not to invest. There was no question that the generic inflation trend that had propelled the bottom line, the margin, in many of these companies was coming to an end. Since then, many of these companies have had to deal with significant headwinds. Prefers others.

COMMENT
COMMENT
May 10, 2017

This has 2 main business lines. They are a wholesale distributor, and as well, they own some pharmacies. A couple of quarters ago, they indicated they were seeing price pressures, and then he listened to the Amerisourcebergen (ABC-N) and it wasn’t quite the same language. This gave him a little pause, and sold his position in January. They are exposed to generic drug prices, which are coming down. Expect this is a sector that will be getting more scrutiny from the US political regime.

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This has 2 main business lines. They are a wholesale distributor, and as well, they own some pharmacies. A couple of quarters ago, they indicated they were seeing price pressures, and then he listened to the Amerisourcebergen (ABC-N) and it wasn’t quite the same language. This gave him a little pause, and sold his position in January. They are exposed to generic drug prices, which are coming down. Expect this is a sector that will be getting more scrutiny from the US political regime.

TOP PICK
TOP PICK
April 24, 2017

A very big player, and has long been a leader. The stock is a long way down from its high. She thinks this company and stock will come back strong. It is a beautiful entry point for it. (Analysts’ target: $151.00).

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McKesson Corp (MCK-N)
April 24, 2017

A very big player, and has long been a leader. The stock is a long way down from its high. She thinks this company and stock will come back strong. It is a beautiful entry point for it. (Analysts’ target: $151.00).

COMMENT
COMMENT
February 22, 2017

One of the top 3 distributors of drugs in the US. A very high volume, low margin business. They indicated they were transitioning into the retail side by acquiring 2200 retail pharmacies in Europe as well as IDA in Canada. They are exposed to the generic drug pricing, so he opted to stand on the sidelines.

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McKesson Corp (MCK-N)
February 22, 2017

One of the top 3 distributors of drugs in the US. A very high volume, low margin business. They indicated they were transitioning into the retail side by acquiring 2200 retail pharmacies in Europe as well as IDA in Canada. They are exposed to the generic drug pricing, so he opted to stand on the sidelines.

HOLD
HOLD
February 21, 2017

One of 3 really big pharmaceutical distributors in the US. A perfect example of short-term versus long-term investing. Healthcare has been a tough sector for the last year. Politically, it always has a big target on it back. He expects the sector as a whole to do a lot better this year. They are working in an oligopoly type structure now. They’ve had a lot of margin expansion over time, which may have ended. Longer-term he likes this, but in the short term it is going to struggle.

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McKesson Corp (MCK-N)
February 21, 2017

One of 3 really big pharmaceutical distributors in the US. A perfect example of short-term versus long-term investing. Healthcare has been a tough sector for the last year. Politically, it always has a big target on it back. He expects the sector as a whole to do a lot better this year. They are working in an oligopoly type structure now. They’ve had a lot of margin expansion over time, which may have ended. Longer-term he likes this, but in the short term it is going to struggle.

COMMENT
COMMENT
January 17, 2017

A decent play on a healthcare rebound. This is really a triumvirate of 3. You have Amerisourcebergen (ABC-N), Mckesson (MCK-N) and Cardinal Health (CAH-N). They have 90% of the drug distribution business. It’s a low margin business, but the good news is that everyone who wants to get into it leaves it for these 3. The valuation is far more attractive now.

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McKesson Corp (MCK-N)
January 17, 2017

A decent play on a healthcare rebound. This is really a triumvirate of 3. You have Amerisourcebergen (ABC-N), Mckesson (MCK-N) and Cardinal Health (CAH-N). They have 90% of the drug distribution business. It’s a low margin business, but the good news is that everyone who wants to get into it leaves it for these 3. The valuation is far more attractive now.

DON'T BUY
DON'T BUY
November 8, 2016

This group has been hurt very badly lately. It looks like the ability to pass on price increases is coming to an end. Also, with the potential of Hillary Clinton being president, and viewing drug prices as something that should be looked at, it is probably an area to avoid for a while.

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McKesson Corp (MCK-N)
November 8, 2016

This group has been hurt very badly lately. It looks like the ability to pass on price increases is coming to an end. Also, with the potential of Hillary Clinton being president, and viewing drug prices as something that should be looked at, it is probably an area to avoid for a while.

SELL
SELL
November 8, 2016

Any time where you have a swing of 20%-40%, clearly there is an issue with communication between investors, management and analysts. He would take the bad medicine now and move on to something that is working a bit better.

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McKesson Corp (MCK-N)
November 8, 2016

Any time where you have a swing of 20%-40%, clearly there is an issue with communication between investors, management and analysts. He would take the bad medicine now and move on to something that is working a bit better.

COMMENT
COMMENT
November 3, 2016

Drug companies are getting their brains smashed out, whether a producer, generic, pharmaceutical benefits manager or a drug distributor. They are getting subpoenas. They are under competitive pressure. This is reflected in their stock prices. If you have a long-term investment horizon, this is the time to start accumulating companies.

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McKesson Corp (MCK-N)
November 3, 2016

Drug companies are getting their brains smashed out, whether a producer, generic, pharmaceutical benefits manager or a drug distributor. They are getting subpoenas. They are under competitive pressure. This is reflected in their stock prices. If you have a long-term investment horizon, this is the time to start accumulating companies.

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McKesson Corp(MCK-N) Rating

Ranking : 1 out of 5

Bullish - Buy Signals / Votes : 0

Neutral - Hold Signals / Votes : 0

Bearish - Sell Signals / Votes : 0

Total Signals / Votes : 0

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, there was no coverage of McKesson Corp published on Stockchase.

Is McKesson Corp a good investment or a top pick?

McKesson Corp was recommended as a Top Pick by Stockchase Research on 2020-08-04. 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?

0 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 2020-09-25, McKesson Corp (MCK-N) stock closed at a price of $148.51.