Home Sectors Healthcare Stock to Watch: McKesson Corporation (NYSE: MCK)

Stock to Watch: McKesson Corporation (NYSE: MCK)


McKesson Corporation trades as part of the healthcare sector and is in the medical distribution industry. The company CEO is Brian S. Tyler. McKesson Corp provides medicines, pharmaceutical supplies, information and care management products and services across the healthcare industry. It operates with two segments namely McKesson Distribution Solutions and McKesson Technology Solutions.

Previous Intraday Trading Performance:

The MCK stock showed a previous change of 1.12% with an open at 124.29 and a close of 126.40. It reached an intraday high of 126.57 and a low of 123.60.

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The stock has a market cap of $24.0b with 190.0m shares outstanding, of which the float is 189.7m shares. Trading volume reached 2,172,458 shares compared to its average volume of 1,389,210 shares. Based on the current average volume and close price, the trading liquidity is good.

Historical Trading Performance:

Over the last five trading days, McKesson Corporation shares returned 0.63% and in the past 30 trading days it returned 8.20%. Over three months, it changed -5.41%. In one year it has changed -12.72% and within that year its 52-week high was 151.24 and its 52-week low was 106.11. MCK stock is 19.12% above its 52 Week Low.

Our calculations show a 200 day moving average of 124.01 and a 50 day moving average of 119.38. Currently MCK stock is trading 1.93% above its 200 day moving average and may be a good opportunity to buy.

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The last annual fiscal EPS for the company was reported at 0.22 that ended on 31st of March 2019, which according to the previous close, that is a PE of 574.55. Based on 7 analyst estimates, the consensus EPS for the next quarter is 2.89. The TTM EPS is 13.08, which comes to a TTM PE of 9.66. Historically, the PE high was 574.55 and the PE low was 5.90. If the stock reached its PE low, that would represent a price of 77.20, which is a decrease of -38.92%.

The dividend per share is currently 1.56, which is a dividend yield of 1.23%. Also, the payout ratio is 11.93%, therefore the dividend is safe according to our calculations.

Base on our calculations, the intrinsic value per share is 247.30, which means it is possibly undervalued and has a margin of safety of 48.89%

Indicators to Watch:

Short-interest was 6,180,996, which was 3.25% of shares outstanding. The short-interest ratio or days-to-cover ratio was 4.55. This stock has some short interest, but it may be normal and no cause for concern if long the position.

The current calculated beta is 1.12

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Fundamental Indicators:

Based on last reported financials, the company’s return on equity is 0.38%, return on assets is 0.06%, profit margin is 0.12%, price-to-sales is 0.11 and price-to-book is 2.93.

Company Scores:

All scores are out of six:
 2  :Valuation Score
 0  :Past Performance Score
 5  :Financial Strength Score
 4  :Future Growth Score
 3  :Dividend Score
 2  :Overall Score

John Jones
Worked for several Wall Street firms: Salomon Smith Barney, UBS, and Charles Schwab. Has developed skills and gained extensive experience over the years that is used today to uncover winning penny stocks.Also was an attorney for small businesses in Scottsdale, Arizona. That experience and understanding of law provides a unique perspective and edge in discovering quality companies in various industries.