After a long, breathtaking upward climb for its stock, highly ranked medical products distribution giant McKesson (MCK) earned a Relative Strength (RS) Rating upgrade from 76 to 83 Wednesday. The rating bump puts McKesson stock in a group of top performers.
The 83 RS Rating means McKesson stock outperformed 83% of all stocks over the past 12 months. Analysis by IBD of over 100 years of market history reveals that the best-performing stocks often have an 80 or higher RS Rating as they begin their biggest climbs.
McKesson Stock Ratings Shine
Among its other key ratings McKesson stock has a lofty 95 Earnings Per Share Rating. Its A- Accumulation/Distribution Rating on an A+ to E scale shows strong buying by institutional investors like ETFs and mutual funds. It also carries an 87 Composite Rating.
The Composite Rating combines five separate proprietary IBD ratings, based on key fundamental and technical criteria, into one easy-to-use score. The best growth stocks have a Composite Rating of 90 or better.
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McKesson stock rose about 300% in the four years from late 2018 until November 2022. It's moved sideways since then. It's building a consolidation with a 401.88 buy point. See if it can break out in volume at least 40% above average. On Wednesday McKesson rose 1.5% to 494.46. That came on the heels of a 5.5% surge Tuesday to just under 400.
Sales, Profits Continue Climbing
Top and bottom line growth moved higher in the company's most recent quarter. Earnings were up 23%, to $7.19 per share. Revenue increased 4% to $68.9 billion.
McKesson stock earns the No. 3 rank among its peers in the Medical-Wholesale Drugs industry group. Cardinal Health and AmerisourceBergen are also among the top 5 in the group.
