Yahoo Finance McKesson is a Growing Giant
MCK is the nation’s largest pharmaceutical distributor to hospitals, retail pharmacies, and medical offices. The company also buys back its own stock regularly. Combine that with more aging people needing medical care and the increasing popularity of Glucagon-like peptide-1 agonists (GLP-1) medications used to fight Type 2 diabetes and obesity, and it’s a recipe for growth.
The company is expected to increase earnings by 13.6% over the next five years. Plus, its market capitalization stands at nearly $77 billion, so it’s a growing giant.
It’s no wonder MCK shares are up 28% this year – and they could rise more. MAPsignals data shows how Big Money investors are betting heavily on the forward picture of the stock.
Big Money Loves McKesson
Institutional volumes reveal plenty. In the last year, MCK has enjoyed strong investor demand, which we believe to be institutional support.
Each green bar signals unusually large volumes in MCK shares. They reflect our proprietary inflow signal, pushing the stock higher:
Plenty of health care names are under accumulation right now. But there’s a powerful fundamental story happening with McKesson.
McKesson Fundamental Analysis
Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, MCK has had strong sales and earnings growth:
3-year sales growth rate (+9.1%)
3-year EPS growth rate (+117.1%)
Source: FactSet
Also, EPS is estimated to ramp higher this year by +13.1%.
Now it makes sense why the stock has been powering to new heights. MCK has a track record of strong financial performance.
Marrying great fundamentals with our proprietary software has found some big winning stocks over the long term.
McKesson has been a top-rated stock at MAPsignals for a long time. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.
It’s made the rare Top 20 report multiple times in the last 20 years. The blue bars below show when MCK was a top pick…driving shares higher along the way:
Tracking unusual volumes reveals the power of money flows.
This is a trait that most superstar stocks exhibit…the best of the best. Big Money demand drives stocks upward.
McKesson Price Prediction
The MCK rally isn’t new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.
Disclosure: the author holds no position in MCK at the time of publication.
If you are a Registered Investment Advisor (RIA) or are a serious investor, take your investing to the next level, learn more about the MAPsignals process here.
This article was originally posted on FX Empire
