Last Updated: 10 Nov 2024
Executive Summary
McKesson Corporation (MCK) is a leading healthcare distributor and provider of health information technology, medical supplies, and care management tools. With a market capitalization of $78.78 billion, MCK has a strong financial position and is well-positioned to benefit from the growing healthcare industry.
Company Overview
McKesson Corporation is an American company that distributes pharmaceuticals and provides health information technology, medical supplies, and care management tools. The company has a global presence with operations in over 150 countries. MCK's primary customers are hospitals, pharmacies, and other healthcare providers.
Fundamental Analysis
Revenue: MCK's revenue has been growing steadily in recent years, reaching $330.19 billion in the trailing twelve months (TTM). The company's revenue is expected to continue to grow in the coming years, driven by the increasing demand for healthcare products and services.
Earnings: MCK's earnings per share (EPS) has also been growing in recent years, reaching $24.73 in the TTM. The company's EPS is expected to continue to grow in the coming years, driven by the company's revenue growth and cost-cutting initiatives.
Profitability: MCK's profit margin is relatively low, at 0.0077%. However, the company's operating margin is higher, at 0.008%. MCK's profitability is expected to improve in the coming years, driven by the company's cost-cutting initiatives.
Valuation: MCK's trailing price-to-earnings (PE) ratio is 24.57, which is in line with the industry average. The company's forward PE ratio is 19.23, which is below the industry average. MCK's valuation is attractive, given the company's strong financial position and growth prospects.
Technical Analysis
Trend: MCK's stock price has been in a downtrend since reaching a 52-week high of $636.7 in January 2023. The stock price is currently trading below its 50-day and 200-day moving averages.
Support and Resistance: The stock price is currently facing support at $583.53, which is the analyst target price. The stock price is also facing resistance at $613, which is the current stock price.
Momentum: The stock price is currently in a period of negative momentum. The relative strength index (RSI) is below 50, which indicates that the stock is oversold.
Short Term Outlook
The short-term outlook for MCK is neutral. The stock price is currently trading below its 50-day and 200-day moving averages, and the RSI is below 50. This indicates that the stock is in a period of negative momentum. However, the stock price is facing support at $583.53, which is the analyst target price. This suggests that the stock price may be due for a bounce.
Long Term Outlook
The long-term outlook for MCK is positive. The company has a strong financial position and is well-positioned to benefit from the growing healthcare industry. MCK's revenue and earnings are expected to continue to grow in the coming years, and the company's profitability is expected to improve.
Analyst Recommendations
Six analysts have a strong buy rating on MCK, ten analysts have a buy rating, three analysts have a hold rating, and no analysts have a sell or strong sell rating. The average analyst target price is $583.53.
