Image Source: Pixabay

Summary

McKesson (MCK) is highlighted for strong technical momentum, hitting all-time highs and maintaining a 100% 'Buy' opinion from Barchart.

MCK has gained nearly 60% over the past year, with robust revenue and earnings growth projected for the next two years.

Analyst sentiment is overwhelmingly positive, with multiple 'Strong Buy' ratings and price targets up to $984, despite some valuation concerns.

Wall Street and advisory sites rate MCK as a 'Strong Buy,' but investors are advised to use tight stop losses due to volatility.

Today’s Featured Stock

Valued at $99.71 billion, McKesson is a health care services and information technology company. McKesson operates through two segments: The Distribution Solutions segment distributes branded and generic pharmaceutical drugs along with other healthcare-related products on a global basis worldwide. The segment also provides practice management, technology, clinical support and business solutions to community-based oncology and other specialty practices. In addition, the segment provides specialty pharmaceutical solutions for pharmaceutical manufacturers including offering multiple distribution channels and study access to oncology physicians. The Technology Solutions segment provides enterprise-wide clinical, patient care, financial, supply chain, and strategic management software solutions. per segment realignment, McKesson reported revenues through four segments: U.S. Pharmaceutical and Specialty Solutions, Internation, Medical-Surgical Solutions and Prescription Technology Solutions. 

What I’m Watching

I found today’s Chart of the Day by using Barchart’s powerful screening functions to sort for stocks with the highest technical buy signals; superior current momentum in both strength and direction; and a Trend Seeker “buy” signal. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. MCK checks those boxes. Since the Trend Seeker signaled a new “Buy” on Sept 23, the stock has gained 9.46%.

MCK (Barchart)

Barchart Technical Indicators for McKesson

Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.

McKesson hit an all-time high of $811.86 in intraday trading on Oct. 27.

• MCK has a Weighted Alpha of +52.83.
• McKesson has a 100% “Buy” opinion from Barchart.
• The stock gained 59.92% over the past year.
• MCK has its Trend Seeker “Buy” signal intact.
• The stock recently traded at $811.44 with a 50-day moving average of $731.56.
• McKesson has made 10 new highs and gained 6.69% in the last month.
• Relative Strength Index (RSI) is at 70.95.
• There’s a technical support level around $803.12.

Don’t Forget the Fundamentals

• $99.71 billion market capitalization.
• 23.68x trailing price-earnings ratio.
• 0.37% dividend yield
• Revenue is projected to grow 13.88% this year and another 8.26% next year.
• Earnings are estimated to increase 16.00% this year and an additional 13.37% next year.

Analyst and Investor Sentiment on McKesson

I don’t buy stocks because everyone else is buying, but I do realize that if major firms and investors are dumping stock, it’s hard to make money swimming against the tide.

It looks like Wall Street analysts are high on McKesson and so are individual investors.

• The Wall Street analysts tracked by Barchart have issued 12 “Strong Buys,”and 5 “Hold” opinions on the stock with price targets between $770 and $900.
• Value Line rates the stock “Highest” with a price target of $984 and comments:" The outlook for fiscal 2026 seems upbeat, too, with the company targeting share-earnings growth of 12%-14%."
• CFRA’s MarketScope Advisor rates it a “Buy” with a price target of $860.
• Morningstar thinks the stock is 17% overvalued.
• 1,801 investors following the stock on Motley Fool think the stock will beat the market while 117 think it won’t.
• 40,420 investors monitor the stock on Seeking Alpha, which rates the stock a “Strong Buy” and comments: “ MCK boasts strong growth and profitability metrics, coupled with excellent momentum and positive earnings revisions, reinforcing its Strong Buy rating despite mixed valuation signals .”

The Bottom Line on McKesson

Wall Street analysts have a “Strong Buy” opinion on the stock, and so do some of the advisory sites like Value Line. If you buy at this level, please keep your stop losses tight.

More By This Author:

Celestica - Strong Electronics Stock With Double Digit Growth Projected
RGTI: This Quantum Computing Stock Is Up 4,024% In A Year; What Comes Next?
EBAY Stock Keeps Hitting New Highs. Is More Growth Ahead?