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McKesson Corporation (MCK) earnings: expect 3% revenue growth

5:23 pm ET, 06 May 2019

McKesson Corporation (MCK) is announcing earnings on May 08, before market opening. Wondering what revenue and earnings will look like?

What should you expect from the upcoming earnings?

Revenue for the next quarter is expected to be $53.35B, which implies 3% growth rate year-over-year.

Earnings per share are expected to come in at $3.66. If this materializes, EPS will grow 5% year-over-year.

How did the stock do last month?

Over the last month, McKesson Corporation (MCK) returned +1.49%.

How is the stock valued?

McKesson Corporation (MCK) forward P/E ratio is 8.06, and it’s low compared to its industry peers’ P/E ratios.

What do analysts say about the stock?

McKesson Corporation (MCK) average analyst price target is 17.94% above its current price ($119.25).

For the latest price and information on McKesson Corporation, please visit Finstead and ask for "MCK", "MCK analysis" or "MCK news".

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Top 3 bets for healthcare sector

1:33 am ET, 21 Apr 2019

In the past 12 months, the healthcare sector has outperformed the global equity market by 1%. The market concerns regarding healthcare pricing pressures have reduced.

The outperformance of the healthcare sector can be attributed to the rising concern about global economic strength. This is the reason why it is considered to be a safer sector.

Wondering which three stocks in the healthcare sector to invest in? Here are our top three bets which you can further analyse before making an investment. These are not our recommendations:

1. Bayer (BAYRY)

Bayer Aktienges Ads (BAYRY) shares are trading at 17.18, up 0.06% from yesterday. There is no link between the glyphosate and cancer as portrayed by many key regulatory agencies and various scientific studies. Owing to is the reason, Bayer will win the legal cases. So, we can expect it to cross the legal barriers easily with the least damage.

The healthcare group is in a competitively advantageous position and the crop science business is less popular, so the company has successfully created a wide economic channel that maintains steady cash flows. The consistent cash flows will drive valuation.

Over the last month, Bayer Aktienges Ads (BAYRY) returned -8.88%. 

Bayer Aktienges Ads (BAYRY) average analyst price target ($22.12) is 28.75% above its current price ($17.18).

For the latest price and information on Bayer Aktienges Ads, please visit Finstead and ask for "BAYRY price" or "BAYRY news".


2.CVS Health (CVS)

CVS Health Corporation (CVS) shares are trading at 52.63, down -0.98% from yesterday. It is the biggest national pharmacy. While processing claims, it provides cost advantages and substantial negotiation of leverage. This ensures best-in-class operating costs for every claim. 

Since the industry is inclined to integrated offerings, its association with Aetna is likely to provide it with a competitive advantage. Besides this, the combination of the biggest PBM and retail pharmacy with the leading medical business will prove to be quite beneficial for the investors.

Over the last month, CVS Health Corporation (CVS) returned -3.37%. 

CVS Health Corporation (CVS) forward P/E ratio is 7.27, and it’s low compared to its industry peers’ P/E ratio.

CVS Health Corporation (CVS) average analyst price target ($76.04) is 44.48% above its current price ($52.63).

For the latest price and information on CVS Health Corporation, please visit Finstead and ask for "CVS price" or "CVS news".

3.McKesson (MCK)

McKesson Corporation (MCK) shares are trading at 114.10, up 0.17% from yesterday. Though there are a number of factors which pressurise the operations and stock of McKesson, it should remain as a primary link in the pharmaceutical supply. 

There is an uncertainty in the upcoming period owing to material volume loss because of customer consolidation, price inflation, a shift towards speciality drugs with high distribution cost and increased competition.

Despite all these reasons, it can maintain stability in the drug supply chain owing to its strong position.

Over the last month, McKesson Corporation (MCK) returned +0.38%.  


McKesson Corporation (MCK) forward P/E ratio is 8.06, and it’s low compared to its industry peers’ P/E ratio.


McKesson Corporation (MCK) average analyst price target ($140.64) is 23.26% above its current price ($114.10).

For the latest price and information on McKesson Corporation, please visit Finstead and ask for "MCK price" or "MCK news".

McKesson Corporation (MCK) Stock Guide

Updated at: 5:10 am ET, 18 Sep 2020

Before we start: if you're looking for MCK stock price, you can quickly find it out by visiting Finny and typing "MCK quote". If you're looking for a quick scoop on MCK stock (chart, price target, market cap, news and buy or sell analysis), go to Finny and look for "MCK". You'll get all this info in one place. Or you can just type "MCK news" to get the latest stock news.

Looking to buy or sell McKesson Corporation (MCK)? Interested in getting the full scoop on MCK, including earnings and dividends, stock forecast, buy or sell analysis and key stats? If so, you came to the right place.

In this MCK stock guide, we'll address key questions about MCK, above and beyond what you can find on Yahoo Finance, Zacks, MarketWatch or Morningstar.

Here is what you'll be able to find in this guide:

Earnings and Dividends: earnings, earnings date, dividend rate and dividend yield;
Analyst Predictions: stock forecast and analyst ratings;
Analysis: Finny Score and buy or sell analysis;
Key Stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio, industry, sector, and number of employees.

And here is the list of questions we'll answer:
1. What are MCK earnings?
2. What is MCK dividend?
3. What is MCK dividend yield?
4. What is MCK stock forecast (i.e., prediction)?
5. MCK buy or sell? What is MCK Finny Score?
6. What are the reasons to buy MCK? Why should I buy MCK stock?
7. What are the reasons to sell MCK? Why should I sell MCK stock?
8. What are MCK key stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

So let's start. Scroll down to the question that interests you the most.

Earnings and Dividends

1. What are MCK earnings?

MCK trailing 12-month earnings per share (EPS) is $5.25.

2. What is MCK dividend?

MCK forward dividend is $1.68.

3. What is MCK dividend yield?

MCK forward dividend yield is 1.09%.

Analyst Predictions

4. What is MCK stock forecast (i.e., prediction)?

Based on MCK analyst price targets, MCK stock forecast is $185.31 (for a year from now). That means the average analyst price target for MCK stock is $185.31. The prediction is based on 14 analyst estimates.

The low price target for MCK is $150.00, while the high price target is $210.00.

MCK analyst rating is Hold.

Analysis

5. MCK buy or sell? What is MCK Finny Score?

#{finnyScore:71}Our quantitative analysis shows 5 reasons to buy and 2 reasons to sell MCK, resulting in Finny Score of 71.

6. What are the reasons to buy MCK? Why should I buy MCK stock?

Here are the reasons to buy MCK stock:

  • McKesson is one of the major pharmaceutical distributors with more than $100 billion in annual revenue. This size has positioned it favorably with both drug manufacturers and retail pharmacy customers.
  • Pharmaceutical spending should grow robustly over the next several years, given demographic shifts and the expansion of medical insurance coverage to the currently uninsured.
  • As specialty drug spending continues to increase, McKesson should reap rewards from this trend as it is the second-largest specialty distributor in the U.S.
  • MCK forward dividend yield is 1.09%, higher than the industry (0.92%) and sector (0.16%) forward dividend yields. See MCK forward dividend chart.
  • MCK forward P/E ratio is 8.81, which is low compared to its industry peers’ P/E ratios. See MCK forward P/E ratio chart.
  • MCK PEG ratio (P/E adjusted for growth) is 1.25, which is low compared to its industry peers’ PEG ratios. See MCK PEG chart.
  • MCK average analyst price target ($185.31) is above its current price ($151.50). See MCK price target chart.
  • MCK cash to debt ratio is 0.28, higher than the average industry (0.18) and sector (0.16) cash to debt ratio. See MCK cash to debt chart.

7. What are the reasons to sell MCK? Why should I sell MCK stock?

Let's look at the reasons to sell MCK stock (i.e., the bear case):

  • Profit margins for McKesson are razor thin, making any significant pricing pressure extremely detrimental.
  • In an effort to procure a cheaper supply of generic product, McKesson has acquired a major European drug distributor in order to enhance its negotiating power and fixed-cost scale. If this investment fails, future revenue and profit growth will take a hit.
  • McKesson has lost a material amount of generic wholesale volume through the partial loss of client contracts as a result of client consolidation.
  • MCK quarterly revenue growth was -0.10%, lower than the industry and sector average revenue growth (1.13% and 0.83%, respectively). See MCK revenue growth chart.
  • MCK profitability is declining. The YoY profit margin change was -2.52 percentage points. See MCK profitability chart.

Key Stats

8. What are MCK key stats : revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

Let's look at the key statistics for MCK:

Metrics MCK
Price $152.16
Average Price Target / Upside $185.31 / 21.79%
Average Analyst Rating Hold
Forward Dividend Yield 1.11%
Industry Medical Distribution
Sector Healthcare
Number of Employees 78,000
Market Cap $24.98B
Forward P/E Ratio 9.08
Price/Book Ratio 0.11
Revenue (TTM) $231B
YoY Quarterly Revenue Growth -0.10%
Profit Margin 0.40%

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