McKesson Stock (NYSE:MCK), Trade Ideas

McKesson

McKesson Corp is one of three leading pharmaceutical wholesalers in the U.S. engaged in sourcing and distributing branded, generic, and specialty pharmaceutical products to pharmacies (retail chains, independent, and mail order), hospitals networks, and healthcare providers. Along with Cencora and Cardinal Health, the three account for over 90% of the U.S. pharmaceutical wholesale industry. Outside the U.S. market, McKesson engages in pharmaceutical wholesale and distribution in Canada. Additionally, the company supplies medical-surgical products and equipment to healthcare facilities and provides a variety of technology solutions for pharmacies.

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The &#34;Mad Money&#34; host recommended buying some Marvell Technology, and then wait until under $60 to buy the rest.

Jim Cramer Is &#39;Willing To Let This Pharma Stock Catch Fire,&#39; Advises Not To Sell McKesson

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Rite Aid (OTC: RADCQ) settles with lenders and DOJ, marking a crucial step toward bankruptcy resolution by April, Reuters reports. Attorney Aparna Yenamandra highlights broad stakeholder agreement, signaling progress despite remaining complexities. Junior bondholders, including Brigade Capital Management, express caution. 

Rite Aid Forges Path To Financial Recovery With Major Settlement: Report

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In a recent report, global wealth manager UBS has identified the sectors that are likely to drive the next wave of technological innovation and the stocks that stand to benefit.

Which Stocks Will Dominate The Future Of Tech? UBS Shares Its Top Picks In AI, Healthtech, Greentech, And Fintech

McKesson Corp

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On <a href="https://www.benzinga.com/topic/mad-money">CNBC's &#8220;Mad Money Lightning Round,&#8221;</a> Jim Cramer recommended holding ConocoPhillips (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/COP#NYSE">COP</a>)
Rhythm Pharmaceuticals, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RYTM#NASDAQ">RYTM</a>) is a &#8220;speculative play,&#8221; Cramer said, &#8220;I am not against speculating biotechs right now. Looks like that there are so many bids, I'm willing to let a stock catch fire.&#8221;
The &#8220;Mad Money&#8221; host recommended buying some Marvell Technology, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MRVL#NASDAQ">MRVL</a>) and then wait until under $60 to buy the rest.
When asked about Enovix Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ENVX#NASDAQ">ENVX</a>), he said, &#8220;You got to be making some money in that business. If you're not making any money in that business, then I can't say to buy the stock.&#8221;
Cramer said he likes Lam Research Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LRCX#NASDAQ">LRCX</a>) very much. &#8220;I do think that right now we're having a pause in that group,&#8221; he added. &#8220;Let's wait until that stock goes lower, and we'll feel better.&#8221;
Aspen Aerogels, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ASPN#NYSE">ASPN</a>) is &#8220;up so big, and what a great opportunity to sell the stock of a money-losing company after you've made a lot of money,&#8221; Cramer said. He recommended taking the profit.
Cramer recommended not selling McKesson Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MCK#NYSE">MCK</a>).
When asked about The PNC Financial Services Group, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PNC#NYSE">PNC</a>), he said, &#8220;You buy some now, and you buy some down 10%, and you will have a terrific position that will last for a very long time.&#8221;
Vale S.A. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VALE#NYSE">VALE</a>) is too low to sell, Cramer said.
Price Action:
<ul>
<li>ConocoPhillips shares fell 0.4% to settle at $127.81 on Thursday.</li>
<li>Enovix shares dipped 9.4% to close at $6.01.</li>
<li>Vale shares fell 0.1% to settle at $11.84 on Thursday.</li>
<li>PNC shares gained 0.4% to close at $147.89 on Thursday.</li>
<li>McKesson shares slipped 1.4% to settle at $518.81 on Thursday.</li>
<li>Shares of Aspen Aerogels fell 1.7% to settle at $14.82 on Thursday.</li>
<li>Rhythm Pharmaceuticals shares fell 0.9% to close at $38.11 on Thursday.</li>
<li>Marvell Technology shares fell 1.9% to settle at $65.24 during Thursday's session.</li>
<li>Lam Research shares fell 2.6% to close at $888.92.</li>
</ul>
Read More: <a href="https://www.benzinga.com/news/earnings/24/04/38329059/netflix-procter-gamble-and-3-stocks-to-watch-heading-into-friday">Netflix, Procter &amp; Gamble And 3 Stocks To Watch Heading Into Friday</a>
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Jim Cramer Is 'Willing To Let This Pharma Stock Catch Fire,' Advises Not To Sell McKesson

Morgan Stanley analyst Erin Wright maintains McKesson (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MCK#NYSE">MCK</a>) with a Overweight and raises the price target from $522 to $548.

Price Target

Analyst Ratings

Morgan Stanley Maintains Overweight on McKesson, Raises Price Target to $548

McKesson (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MCK#NYSE">MCK</a>) has outperformed the market over the past 5 years by 23.24% on an annualized basis producing an average annual return of 35.36%. Currently, McKesson has a market capitalization of $69.65 billion. 
Buying $100 In MCK: If an investor had bought $100 of MCK stock 5 years ago, it would be worth $452.17 today based on a price of $529.99 for MCK at the time of writing.
<h3>McKesson's Performance Over Last 5 Years</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1712784635_0.png" alt="comp_fig" />
Finally -- what's the point of all this? The key insight to take from this article is to note how much of a difference compounded returns can make in your cash growth over a period of time.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Trading Ideas

If You Invested $100 In This Stock 5 Years Ago, You Would Have $500 Today

Argus Research analyst David Toung maintains McKesson (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MCK#NYSE">MCK</a>) with a Buy and raises the price target from $510 to $570.

Argus Research Maintains Buy on McKesson, Raises Price Target to $570

McKesson (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MCK#NYSE">MCK</a>) has outperformed the market over the past 10 years by 1.42% on an annualized basis producing an average annual return of 12.31%. Currently, McKesson has a market capitalization of $70.78 billion. 
Buying $1000 In MCK: If an investor had bought $1000 of MCK stock 10 years ago, it would be worth $3,213.89 today based on a price of $538.62 for MCK at the time of writing.
<h3>McKesson's Performance Over Last 10 Years</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1712163622_0.png" alt="comp_fig" />
Finally -- what's the point of all this? The key insight to take from this article is to note how much of a difference compounded returns can make in your cash growth over a period of time.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

If You Invested $1000 In This Stock 10 Years Ago, You Would Have $3,200 Today

McKesson's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MCK#NYSE">MCK</a>) short percent of float has risen 9.17% since its last report. The company recently reported that it has 1.72 million shares sold short, which is 1.31% of all regular shares that are available for trading. Based on its trading volume, it would take traders 1.77 days to cover their short positions on average.
<h3>Why Short Interest Matters</h3>
Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock/">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.
Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.
See Also: <a href="https://www.benzinga.com/short-interest">List of the most shorted stocks</a>
<h3>McKesson Short Interest Graph (3 Months)</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1711635308_0.png" alt="short_fig" />
As you can see from the chart above the percentage of shares that are sold short for McKesson has grown since its last report. This does not mean that the stock is going to fall in the near-term but traders should be aware that more shares are being shorted.
<h3>Comparing McKesson's Short Interest Against Its Peers</h3>
Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.
According to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, McKesson's peer group average for short interest as a percentage of float is 4.43%, which means the company has less short interest than most of its peers.
Did you know that increasing short interest can actually be bullish for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze/">This post by Benzinga Money explains how you can profit from it.</a>
This article was generated by Benzinga's automated content engine and was reviewed by an editor.

Short Sellers

Short Ideas

Peering Into McKesson's Recent Short Interest

Pharmacy chain&nbsp;Rite Aid&nbsp;Corp&nbsp;(OTC:<a class="ticker" href="https://www.benzinga.com/stock/RADCQ#OTC">RADCQ</a>) has reportedly reached a pivotal settlement with its lenders, the U.S. Department of Justice, and drug supplier&nbsp;McKesson Corp&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MCK#NYSE">MCK</a>).
The settlement will pave the way for the conclusion of its bankruptcy case by late April, according to a report from Reuters.
During a bankruptcy court hearing in Trenton, New Jersey, Rite Aid attorney Aparna Yenamandra announced the agreement, emphasizing resolution with all key economic stakeholders. Yenamandra did not delve into specifics, citing ongoing negotiations.
Despite the positive development, Rite Aid&#8217;s junior bondholders expressed caution, highlighting remaining unresolved issues, as per the report.
Attorney Andrew Rosenberg underscored the complexity of these matters, representing bondholders such as Brigade Capital Management, HG Vora Capital Management, and J.P. Morgan Investment Management.
Rite Aid plans to address lingering concerns swiftly, aiming to commence the voting process for its bankruptcy plan later this week.
According to the report, U.S. Bankruptcy Judge Michael Kaplan expressed interest in the settlement&#8217;s intricacies and scheduled a follow-up court session on Thursday.
The company filed for bankruptcy in October last year to begin implementing a&nbsp;<a target="_blank" href="https://www.benzinga.com/news/23/10/35261652/drug-retailer-rite-aid-grappling-with-lawsuits-files-for-bankruptcy" rel="noreferrer noopener">restructuring plan to reduce its debt</a>.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Wikimedia Commons

Guidance

McCormick Reaffirms FY24 Sales Growth Outlook Of (2)% - 0%; Adj EPS Of $2.80 - $2.85 Vs. $2.83 Est.

McKesson (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MCK#NYSE">MCK</a>) has outperformed the market over the past 5 years by 22.12% on an annualized basis producing an average annual return of 35.12%. Currently, McKesson has a market capitalization of $70.17 billion. 
Buying $100 In MCK: If an investor had bought $100 of MCK stock 5 years ago, it would be worth $436.86 today based on a price of $533.97 for MCK at the time of writing.
<h3>McKesson's Performance Over Last 5 Years</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1710777632_0.png" alt="comp_fig" />
Finally -- what's the point of all this? The key insight to take from this article is to note how much of a difference compounded returns can make in your cash growth over a period of time.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

$100 Invested In This Stock 5 Years Ago Would Be Worth $400 Today

In a recent report, global wealth manager UBS identified the sectors likely to drive the next wave of technological innovation and the stocks that stand to benefit.
What Happened: UBS has pinpointed artificial intelligence (AI), cybersecurity, health tech, Greentech, and fintech as the sectors that will produce the &#8220;next big thing&#8221; in tech. The bank has selected 29 companies that are expected to experience &#8220;superior&#8221; earnings growth compared to the market, driven by &#8220;positive, durable structural trends,&#8221; CNBC <a href="https://www.cnbc.com/2024/03/18/next-big-thing-in-tech-ubs-names-stocks-to-own-for-the-longer-term.html">reported</a> on Sunday.
"Collectively, we see industry leaders for 2030 emerging from these sectors," said UBS in a March 14 report.&nbsp;
Among the companies on UBS&#8217; list are:
<ul>
<li>McKesson Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MCK#NYSE">MCK</a>): The company&#8217;s expansion into data-driven services across the U.S. healthcare value chain will cause UBS to be bullish in the future.</li>
</ul>
<ul>
<li>Baidu (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BIDU#NASDAQ">BIDU</a>): UBS sees Baidu&#8217;s expertise in AI and machine learning, particularly in its non-advertising businesses like autonomous driving and cloud, as potential long-term growth drivers.</li>
<li>Stryker (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SYK#NYSE">SYK</a>): UBS notes Stryker&#8217;s growth in its core orthopedic markets, particularly in robotic surgery, as a strong indicator of future performance.</li>
</ul>
<ul>
<li>ASML Holding (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ASML#NASDAQ">ASML</a>): UBS predicts the Dutch semiconductor firm will outgrow its peers due to the continued rise in lithography capital expenditure spending.</li>
</ul>
<ul>
<li>Broadcom (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>): UBS highlights Broadcom&#8217;s market-leading position in semiconductor design and its potential to tap into the structural demand for 5G-related services, data center storage, and industrial applications.</li>
</ul>
See Also: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/03/37765365/dont-be-afraid-top-crypto-analyst-shares-his-plan-to-buy-dogecoin-shiba-inu-and-oth?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">&#8216;Don&#8217;t Be Afraid&#8217;: Top Crypto Analyst Shares His Plan To Buy Dogecoin, Shiba Inu, And Other Altcoins For Potential 5X Gains Post Correction</a>
Other companies on the list include Intercontinental Exchange (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ICE#NYSE">ICE</a>), Mastercard Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MA#NYSE">MA</a>), Air Liquide (OTC:<a class="ticker" href="https://www.benzinga.com/stock/AIQUY#OTC">AIQUY</a>), Engie (OTC:<a class="ticker" href="https://www.benzinga.com/stock/ENGIY#OTC">ENGIY</a>), Wacker Chemie (OTC:<a class="ticker" href="https://www.benzinga.com/stock/WKCMY#OTC">WKCMY</a>), ServiceNow (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NOW#NYSE">NOW</a>), and Taiwan Semiconductor (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>).
Why It Matters: The UBS report aligns with recent developments in the tech industry. For example, AI has been a hot topic, with experts like Jim Cramer expressing excitement about the <a href="https://www.benzinga.com/markets/equities/24/03/37769867/jim-cramer-pumped-up-about-nvidia-ceo-jensen-huangs-gtc-2024-speech-when-our-modern-day-davinci-">potential of AI</a> in Nvidia&#8217;s future. 
However, other industry voices, such as Fidelity International, have suggested that investors look <a href="https://www.benzinga.com/markets/equities/24/03/37724250/nvidia-isnt-the-only-ai-contender-fidelity-suggests-investors-look-beyond-hot-ai-stocks-names-th">beyond the obvious choices</a>, like Nvidia, for AI investments. 
Despite this, Glen Kacher of Light Street Capital has advised that it <a href="https://www.benzinga.com/markets/equities/24/03/37724593/way-too-early-expert-warns-as-investors-trading-out-of-nvidia-amd-microsoft-and-other-ai-stocks">may be too early to exit</a> the semiconductor market, suggesting that we are still at the beginning of the investment cycle for building an AI infrastructure. 
This indicates that the tech sectors identified by UBS may indeed be the next big thing, with AI and semiconductors playing a crucial role.
Read Next: <a href="https://www.benzinga.com/markets/cryptocurrency/24/03/37761475/dogecoin-killer-shiba-inu-burn-rate-defies-market-action-with-933-surge-daily-active-addre?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">&#8216;Dogecoin Killer&#8217; Shiba Inu Burn Rate Defies Market Action With 933% Surge, Daily Active Addresses Spike By 8%</a>
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UBS analyst Kevin Caliendo maintains McKesson (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MCK#NYSE">MCK</a>) with a Buy and raises the price target from $575 to $620.

UBS Maintains Buy on McKesson, Raises Price Target to $620

McKesson's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MCK#NYSE">MCK</a>) short percent of float has fallen 5.51% since its last report. The company recently reported that it has 1.57 million shares sold short, which is 1.2% of all regular shares that are available for trading. Based on its trading volume, it would take traders 2.37 days to cover their short positions on average.
<h3>Why Short Interest Matters</h3>
Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock/">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.
Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.
See Also: <a href="https://www.benzinga.com/short-interest">List of the most shorted stocks</a>
<h3>McKesson Short Interest Graph (3 Months)</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1709041520_0.png" alt="short_fig" />
As you can see from the chart above the percentage of shares that are sold short for McKesson has declined since its last report. This does not mean that the stock is going to rise in the near-term but traders should be aware that less shares are being shorted.
<h3>Comparing McKesson's Short Interest Against Its Peers</h3>
Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.
According to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, McKesson's peer group average for short interest as a percentage of float is 5.04%, which means the company has less short interest than most of its peers.
Did you know that increasing short interest can actually be bullish for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze/">This post by Benzinga Money explains how you can profit from it.</a>
This article was generated by Benzinga's automated content engine and was reviewed by an editor.

How Is The Market Feeling About McKesson?

McKesson (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MCK#NYSE">MCK</a>) has outperformed the market over the past 15 years by 4.64% on an annualized basis producing an average annual return of 18.75%. Currently, McKesson has a market capitalization of $67.84 billion. 
Buying $1000 In MCK: If an investor had bought $1000 of MCK stock 15 years ago, it would be worth $13,131.20 today based on a price of $516.24 for MCK at the time of writing.
<h3>McKesson's Performance Over Last 15 Years</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1708968616_0.png" alt="comp_fig" />
Finally -- what's the point of all this? The key insight to take from this article is to note how much of a difference compounded returns can make in your cash growth over a period of time.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

If You Invested $1000 In This Stock 15 Years Ago, You Would Have $13,000 Today

Leerink Partners analyst Michael Cherny initiates coverage on McKesson (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MCK#NYSE">MCK</a>) with a Outperform rating and announces Price Target of $600.

Initiation

Leerink Partners Initiates Coverage On McKesson with Outperform Rating, Announces Price Target of $600

The Federal Trade Commission (FTC) is reportedly launching an investigation into recent shortages of chemotherapies, including carboplatin, cisplatin, and other drugs, aiming to understand the market dynamics contributing to the scarcity of&nbsp;<a target="_blank" href="https://www.benzinga.com/general/biotech/23/06/32816376/drug-shortages-in-focus-how-fdas-quest-for-new-methotrexate-suppliers-affects-the-cancer-treatmen" rel="noreferrer noopener">crucial medicines in U.S. hospitals</a>.&nbsp;
The FTC seeks insights into the practices of drug distributors and hospital purchasing groups, including contracting methodologies, market concentration, and&nbsp;<a target="_blank" href="https://www.benzinga.com/general/biotech/22/10/29248173/fda-signals-shortage-for-teva-pharmas-adhd-drug-due-to-manufacturing-delay" rel="noreferrer noopener">compensation structures</a>.&nbsp;
The agency is interested in exploring whether intermediaries facilitating drug purchases for hospitals and those involved in shipping medicines have potentially wielded their market influence to drive down the prices of generic drugs.&nbsp;
The FTC&#8217;s inquiry targets a market dominated by a select few companies. Three key groups handle drug purchases for most U.S. hospitals, while three leading wholesalers supply approximately 90% of drugs to various&nbsp;<a target="_blank" href="https://www.benzinga.com/general/biotech/24/01/36594393/fda-allows-importing-unapproved-but-essential-syphilis-treatment-amid-shortage-of-pfizers-antibio" rel="noreferrer noopener">healthcare entities nationwide</a>.
The three leading group purchasing organizations (GPO),&nbsp;Vizient,&nbsp;Premier Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PINC#NASDAQ">PINC</a>), and&nbsp;HealthTrust&nbsp;represent many hospitals, leveraging their negotiating power to secure low prices.&nbsp;
Critics argue that these prices are so low that some drugmakers reduce production or exit the market altogether.
Cencora Inc&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/COR#NYSE">COR</a>) (formerly AmerisourceBergen),&nbsp;Cardinal Health Inc&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CAH#NYSE">CAH</a>), and&nbsp;McKesson Corporation&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MCK#NYSE">MCK</a>) are the big drug wholesalers.
The agency&#8217;s objective is to examine the root causes of drug shortages, the Wall Street Journal&nbsp;<a target="_blank" href="https://www.wsj.com/health/healthcare/drug-shortages-trigger-ftc-probe-136eca5a?mod=latest_headlines" rel="noreferrer noopener">noted</a>, with an official announcement of the inquiry expected on Wednesday.
Trade associations representing hospital purchasing groups and pharmaceutical distributors have defended their practices amidst the FTC&#8217;s investigation.&nbsp;
The Healthcare Supply Chain Association attributes drug shortages to manufacturers&#8217; quality issues and emphasizes collaborative efforts with hospitals to manage and mitigate shortages.
Similarly, the Healthcare Distribution Alliance, representing pharmaceutical distributors, cites various factors contributing to shortages, such as difficulties in sourcing raw materials and sudden spikes in demand.&nbsp;
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Image by HeungSoon from Pixabay

Large Cap

Legal

PINC

US Federal Trade Commission Investigates Drug Shortages Amid Allegations Of Market Manipulation

Mizuho analyst Ann Hynes maintains McKesson (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MCK#NYSE">MCK</a>) with a Neutral and raises the price target from $450 to $505.

Mizuho Maintains Neutral on McKesson, Raises Price Target to $505-Report released on 8th February 2024

Wednesday,&nbsp;McKesson Corporation&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MCK#NYSE">MCK</a>) reported that third-quarter 2024 sales of $80.9 billion increased 15%, beating the&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/earnings" rel="noreferrer noopener">consensus of $77.86 billion</a>.
Revenue increases were primarily driven by growth in the U.S. Pharmaceutical segment, resulting from increased prescription volumes, including higher volumes from specialty products, retail national account customers, and GLP-1 medications (used to treat diabetes and obesity), partially offset by lower revenues in the International segment as a result of divestitures&nbsp;<a target="_blank" href="https://www.benzinga.com/pressreleases/24/02/b36992048/mckesson-corporation-reports-fiscal-2024-third-quarter-results-and-raises-full-year-guidance" rel="noreferrer noopener">within McKesson&#8217;s European business</a>.
Adjusted EPS&nbsp;<a target="_blank" href="https://s24.q4cdn.com/128197368/files/doc_financials/2024/q3/MCK-Q3-FY24-Earnings-Release_FINAL.pdf" rel="noreferrer noopener">reached</a>&nbsp;$7.74, up 12% Y/Y, beating the consensus of $7.05.
U.S. Pharmaceutical Segment revenues were $73.0 billion, up 18%, driven by increased prescription volumes, including higher volumes from specialty products, retail national account customers, and GLP-1 medications.
Prescription Technology Solutions Segment revenues were $1.2 billion, an increase of 7%, driven by increased prescription volumes in technology services and third-party logistics businesses.
Also Read:&nbsp;<a target="_blank" href="https://www.benzinga.com/news/23/10/35305376/bankrupt-rite-aid-mckesson-strike-deal-to-secure-steady-drug-deliveries" rel="noreferrer noopener">Bankrupt Rite Aid, McKesson Strike Deal To Secure Steady Drug Deliveries</a>.
Guidance:&nbsp;McKesson revised its fiscal year 2024 adjusted EPS outlook from $26.80- $27.40 to $27.25-$27.65 versus the consensus of $27.32.
Baird&nbsp;notes McKesson is still capitalizing on strong fundamentals in key sectors, such as U.S. Pharmaceutical Distribution and Prescription Technology Solutions. The organization&#8217;s efforts to streamline operations are proving successful and yielding positive outcomes.
Street &#8220;wanted more&#8221; Prescription Technology Solutions (RxTS) adjusted operating income (GLP-1 PA theme, Baird more cautious vs. upside dreamers), but the fourth quarter looks strong.
The analysts Eric Coldwell and Allison Jacobsen maintain the Outperform rating with a price target of&nbsp;<a target="_blank" href="https://www.benzinga.com/quote/MCK/analyst-ratings" rel="noreferrer noopener">$567, up from $519</a>.&nbsp;
Although McKesson&#8217;s valuation is relatively high compared to other distributors, Baird says the ongoing positive momentum in its core growth and improving outlook is favorable.
Citigroup&nbsp;also maintains McKesson stock with a Buy rating, raising the price target from $530 to $575.&nbsp;
Price Action:&nbsp;MCK shares are down 5.22% at $490.00 on the last check Thursday.

Analyst Color

Earnings

Reiteration

Movers

Medical Supplies-Focused McKesson Shares Fall On Q3 Earnings Performance, Analyst Says Street 'Wanted More'

Citigroup analyst Daniel Grosslight maintains McKesson (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MCK#NYSE">MCK</a>) with a Buy and raises the price target from $530 to $575.

Citigroup Maintains Buy on McKesson, Raises Price Target to $575

WIIM

McKesson shares are trading lower after the company reported Q3 financial results.

McKesson (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MCK#NYSE">MCK</a>) has outperformed the market over the past 5 years by 17.87% on an annualized basis producing an average annual return of 30.54%. Currently, McKesson has a market capitalization of $67.60 billion. 
Buying $1000 In MCK: If an investor had bought $1000 of MCK stock 5 years ago, it would be worth $3,894.81 today based on a price of $508.00 for MCK at the time of writing.
<h3>McKesson's Performance Over Last 5 Years</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1707402616_0.png" alt="comp_fig" />
Finally -- what's the point of all this? The key insight to take from this article is to note how much of a difference compounded returns can make in your cash growth over a period of time.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

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