/Mckesson%20Corporation%20logo%20on%20building-by%20JHVEPhoto%20via%20iStock.jpg)
With a market cap of $71.74 billion, McKesson Corporation (MCK) is a significant healthcare services and pharmaceutical distribution company headquartered in Irving, Texas. It is known for its vast distribution network and commitment to improving patient care. McKesson plays a pivotal role in the healthcare industry by delivering pharmaceuticals, medical supplies, and technology solutions to customers across the U.S. and internationally.
MCK has significantly outperformed the broader market over the last year. The stock has gained 31.1% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 27%. In 2024, the stock has rallied 19.3%, compared to SPX's 18.1% gains on a YTD basis.
Narrowing the focus, MCK also outperformed the Health Care Select Sector SPDR Fund (XLV). The exchange-traded fund has gained 14% on a YTD basis.
MCK reported its Q1 results on Aug. 7, with earnings of $7.88, which exceeded the Street forecasts of $7.16. However, the company’s revenue stood at $79.28 billion, missing Wall Street estimates of $83.21 billion. MCK expects full-year earnings between $31.75 and $32.55 per share. Following the release of its results, the stock gained marginally.
For the current fiscal year, ending in March 2025, analysts expect MCK’s EPS to grow 14.9% to $31.53 on a diluted basis. The company's earnings surprise history is mixed. It beat the consensus estimate in three of the last four quarters while missing on another occasion.
Among the 16 analysts covering MCK stock, the consensus rating is a “Strong Buy.” That’s based on 12 “Strong Buy” ratings, one “Moderate Buy,” and three “Holds.”
On Aug. 16, Elizabeth Anderson, CFA from Evercore ISI, maintained a “Buy” rating on McKesson, with a price target of $630, which indicates a 14.1% upside from the current levels.
The mean price target of $635.28 represents a 15.1% premium to MCK’s current price levels. The Street-high price target of $671 suggests an upside potential of 21.5%.
On the date of publication, Rashmi Kumari 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.
