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/MCK
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McKesson Corp

McKesson Corp

MCK
$881.51USD↑+0.07%+0.65 today

MARKET CAP

102.8B

P/E (TTM)

21.6x

FWD P/E

18.8x

DAY RANGE

$874 – $894

52W RANGE

$688
$999

AI Summary

Stalk
StalkMedium

MCK remains in a clear Stage 2 uptrend with price above rising EMAs and SMAs. The medium-term directional bias is bullish, supported by a Stage 2 advancing regime and an active Bearish Exhaustion inflection suggesting a potential reversal bounce. Short-term price is pulling back into the 9/20 EMA confluence, lacking a clear execution signal. Preferred engagement is to stalk for pullback absorption near the 9/20 EMA zone (around the 885–890 area). A decisive break and close below the 50 SMA (~857) would invalidate the medium-term bullish stance.

  • ↑Q1 2027 revenue $105.4B (+8% YoY); adjusted EPS $9.93 (+20% YoY)
  • ↑Raised fiscal 2027 EPS guidance to $44.20–45; initiated $5B buyback and hiked dividends 15%
  • ↓First-quarter free cash flow was negative $372M, highlighting liquidity pressures
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The case for & against

Bull & Bear analysis

Bullish

McKesson Corporation (NYSE: MCK) is a leading healthcare services and information technology company that occupies a dominant position in the pharmaceutical distribution industry. With a focus on integrated healthcare solutions, McKesson operates through various segments, including North American Pharmaceuticals and Oncology, positioning itself at the forefront of the growing specialty pharmaceuticals market. The company is a critical player in enhancing access, affordability, and quality in healthcare through its comprehensive scale and advanced technology.

Bull says

  • ↑Q1 2027 revenue $105.4B (+8% YoY); adjusted EPS $9.93 (+20% YoY)
  • ↑Raised fiscal 2027 EPS guidance to $44.20–45; initiated $5B buyback and hiked dividends 15%
  • ↑Oncology and specialty pharma sales surged 33%; GLP-1 medications added $15B
  • ↑Developing AI-driven platforms to enhance operational efficiency and patient service delivery
  • ↑Strong balance sheet supports 5–9% revenue growth amid favorable specialty pharma tailwinds
  • ↑Positive factor profile: robust growth, solid profitability, and sustainable shareholder returns

Bear says

  • ↓First-quarter free cash flow was negative $372M, highlighting liquidity pressures
  • ↓Negative earnings yield and low book-to-price ratio indicate stretched valuation
  • ↓Regulatory headwinds on 340B pricing could compress margins and revenue growth
  • ↓Extreme stock volatility elevates risk of sharp price swings
  • ↓Large capex and new distribution centers carry execution and integration risks
  • ↓Analyst revisions are negative, suggesting waning confidence in earnings forecasts

Investment themes with MCK

Health Care Distribution↓ -0.12%

MCK · CAH · MCK
SPY↑ +0.09%

NVDA · AAPL · GOOGL

Earnings Call · Q2 2024 · Mgmt. Guidance

Updated 12-05-2024neutral

Transcript signals

Bull points

  • We're pleased with our second quarter results which reflect another quarter of solid performance driven by operational execution and meaningful growth in our U.S. Pharmaceutical and Prescription Technology Solutions segments.
  • Our focus and execution against our company priorities positioned us to generate consistent, solid financial results.
  • As a result of our operating performance and outlook for the remainder of the fiscal year, we are increasing and narrowing our full year outlook for fiscal 2024, adjusted earnings per diluted share to a range of $26.80 to $27.40.

Bear points

  • We recorded a pretax GAAP provision for bad debts of $210 million or $155 million after tax.
  • We anticipate recording an additional provision for bad debts of $511 million in the third quarter of fiscal 2024.
  • The anticipated lower COVID-19 related revenues were partially offset by growth in the extended care business and increased distribution of pharmaceuticals in the primary care business.
Read full transcript analysis ›