McKesson Corporation Surges in Stock Performance Amid Strong Earnings Report
A Closer Look at MCK’s Financial Gains and Analyst Ratings
McKesson Corporation (MCK), boasting a market capitalization of $79.1 billion, plays a crucial role in healthcare services and pharmaceutical distribution from its base in Irving, Texas. Known for its extensive distribution network, the company is dedicated to improving patient care by providing pharmaceuticals, medical supplies, and technology solutions for both domestic and international markets.
Over the past year, MCK’s shares have outshined the broader market. The stock has increased by 36.2%, compared to the S&P 500 Index ($SPX), which has seen a nearly 31% gain during the same period. In 2024, MCK has climbed 34.2%, while the SPX recorded a 25.2% rise year-to-date.
More specifically, McKesson also surpassed the Health Care Select Sector SPDR Fund (XLV), which achieved a 14% gain over the last year and 5.7% year-to-date.
The company’s most recent Q2 earnings report, released on November 1, led to a 5.1% increase in share price. McKesson reported an adjusted EPS of $6.89, surpassing analysts’ expectations, while its revenue reached $93.7 billion, exceeding consensus estimates.
For the fiscal year ending in March 2025, analysts project a 19.5% year-over-year growth in MCK’s EPS, expected to reach $32.78 on a diluted basis. Historically, the company’s earnings surprises have been mixed; it has exceeded consensus estimates in three of the last four quarters but not on one occasion.
Out of the 16 analysts covering McKesson, the consensus rating currently stands as a “Strong Buy.” This consists of 12 “Strong Buy” ratings, one “Moderate Buy,” and three “Holds.”
It’s worth noting that this consensus is less optimistic than just a month ago when there were 10 “Strong Buys.”
On November 13, Citigroup Inc. (C) analyst Daniel Grosslight reaffirmed a Buy rating on McKesson, raising the price target from $630 to $713.
The average price target of $657.13 indicates a potential 5.4% increase compared to MCK’s current price levels, while the highest price target set at $715 suggests a potential upside of 14.7%.
On the date of publication, Kritika Sarmah did not hold any positions in the securities mentioned in this article. All information and data in this article are for informational purposes only. For more details, please refer to the Barchart Disclosure Policy here. More news from Barchart
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
