Valued at a market cap of $76.6 billion, Irving, Texas-based McKesson Corporation (MCK) is a leading healthcare services and information technology company. It operates globally through four primary segments: U.S. Pharmaceutical, Prescription Technology Solutions (RxTS), Medical-Surgical Solutions, and International.
Companies worth more than $10 billion are generally described as “large-cap” stocks, and McKesson fits this criterion perfectly. McKesson serves healthcare providers, pharmacies, pharmaceutical manufacturers, and patients, aiming to improve healthcare outcomes through innovative solutions and logistics support.
Despite a 5.3% pullback from its 52-week high of $637.51 reached on Aug. 2, shares of this prescription drug distributor have gained 16.6% over the past three months, underperforming the broader Nasdaq Composite’s ($NASX) 17.6% return over the same time frame.
In the longer term, MCK stock is up 28.3% on a YTD basis, lagging behind NASX’s 32.3% gains. Moreover, shares of MCK have gained 29.7% over the past 52 weeks, compared to NASX’s 37.9% returns over the same time frame.
Yet, MCK has been trading above its 50-day moving average since mid-October and also stayed above its 200-day moving average since early-November, indicating a bullish trend.
Shares of McKesson surged 10.6% following its Q2 earnings release on Nov. 6 due to strong financial results that exceeded analysts' expectations. The company reported adjusted EPS of $7.07 and revenue of $93.7 billion. The upbeat performance was driven by growth in the U.S. Pharmaceutical segment, particularly specialty products and GLP-1 medications, and contributions from Prescription Technology Solutions and Medical-Surgical Solutions. Additionally, McKesson raised its fiscal 2025 adjusted EPS guidance to $32.40 - $33, further boosting investor confidence.
MCK has outperformed its rival Cencora, Inc. (COR), which gained 20% over the past 52 weeks and 17.9% on a YTD basis.
Despite MCK’s underperformance relative to the Nasdaq over the past year, analysts remain bullish about its prospects. The stock has a consensus rating of “Strong Buy” from 16 analysts in coverage, and the mean price target of $662.47 suggests a premium of 11.1% to its current levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here. More news from Barchart- Bitcoin Just Topped $100K. Should You Buy More Nvidia Stock?
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