Author's Note: Sometimes a stock will come up continually on my screeners. MCK was featured 10/16/2023 when it was trading at $462.56. The stock has gained 30%+ since then.
The Chart of the Day belongs to the healthcare medical distribution company McKesson (MCK) . I found the stock by using Barchart's powerful screening functions to find stocks with the highest technical buy signals, highest Weighted Alpha, superior current momentum and having a Trend Seeker buy signal then used the Flipchart feature to review the charts for consistent price appreciation. Since the Trend Seeker signaled a buy on 4/26 the stock gained 11.00%.
McKesson Corporation provides healthcare services in the United States and internationally. It operates through four segments: U.S. Pharmaceutical, Prescription Technology Solutions (RxTS), Medical-Surgical Solutions, and International. The U.S. Pharmaceutical segment distributes branded, generic, specialty, biosimilar and over-the-counter pharmaceutical drugs, and other healthcare-related products. This segment also offers practice management, technology, clinical support, and business solutions to community-based oncology and other specialty practices; and consulting, outsourcing, technological, and other services, as well as sells financial, operational, and clinical solutions to pharmacies. The RxTS segment serves biopharma and life sciences partners, and patients to address medication challenges for patients by working across healthcare; connects patients, pharmacies, providers, pharmacy benefit managers, health plans, and biopharma companies to deliver innovative solutions to help people get the medicine needed to live healthier lives; and provides prescription price transparency, benefit insight, dispensing support, third-party logistics, and wholesale distribution support services. The Medical-Surgical Solutions segment offers medical-surgical supply distribution, logistics, and other services to healthcare providers, including physician offices, surgery centers, nursing homes, hospital reference labs, and home health care agencies. The International segment provides distribution and services to wholesale, institutional, and retail customers in Europe and Canada. McKesson Corporation was founded in 1833 and is headquartered in Irving, Texas.
Barchart's Opinion Trading systems are listed below. Please note that the Barchart Opinion indicators are updated live during the session every 20 minutes and can therefore change during the 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.
Barchart Technical Indicators:
- 100% technical buy signals
- 49.72+ Weighted Alpha
- 45.51% gain in the last year
- Trend Seeker buy signal
- Above its 20, 50 and 100 day moving averages
- 15 new highs and up 9.19% in the last month
- Relative Strength Index 74.18%
- Technical support level at $600.54
- Recently traded at $603.08 with 50 day moving average of $556.20
Fundamental Factors:
- Market Cap $78.39 billion
- Revenue expected to grow 16.50% this year and increase another 8.30% next year
- Earnings estimated to increase 15.60% this year, an additional 12.90% next year and continue to compound at an annual rate of 11.76% for the next 5 years
Analysts and Investor Sentiment -- I don't buy stocks because everyone else is buying but I do realize that if major firms and investors are dumping a stock it's hard to make money swimming against the tide:
- Wall Street analysts issued 10 strong buy, 4 buy, 3 hold and 1 sell recommendation
- Analysts have price targets between $460 and $679 with a consensus at $607.23
- Value Line rates the stock its highest rating of 1 with 12 month price targets between $529 and $840 and a mid-point of $684 for another 15% gain
- CFRAs MarketScope has a hold rating with a 12 month price target of $655
- MorningStar gives the stock a below average 32star rating with a Fair Value of $460 about 31% over valued
- 37,580 investors monitor the stock on Seeking Alpha
Additional disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance and reevaluate your stop losses at least on a weekly basis.
On the date of publication, Jim Van Meerten 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.
