McKesson (MCK) Hits New Lifetime High
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.Trade-Ideas LLC identified McKesson (MCK) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified McKesson as such a stock due to the following factors:
- MCK has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $257.1 million.
- MCK has traded 37,450 shares today.
- MCK is trading at a new lifetime high.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in MCK with the Ticky from Trade-Ideas. See the FREE profile for MCK NOW at Trade-IdeasMore details on MCK: McKesson Corporation delivers pharmaceuticals, medical supplies, and health care information technologies to the healthcare industry in the United States and internationally. The company operates in two segments, McKesson Distribution Solutions and McKesson Technology Solutions. The stock currently has a dividend yield of 0.5%. MCK has a PE ratio of 32.3. Currently there are 12 analysts that rate McKesson a buy, 1 analyst rates it a sell, and 3 rate it a hold.The average volume for McKesson has been 1.4 million shares per day over the past 30 days. McKesson has a market cap of $43.5 billion and is part of the services sector and wholesale industry. The stock has a beta of 0.89 and a short float of 0.8% with 1.35 days to cover. Shares are up 17.5% year-to-date as of the close of trading on Friday.STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.TheStreetRatings.com Analysis:TheStreet Quant Ratings rates McKesson as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, increase in net income, solid stock price performance and good cash flow from operations. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.Highlights from the ratings report include:
- MCK's revenue growth has slightly outpaced the industry average of 16.8%. Since the same quarter one year prior, revenues rose by 25.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
- MCKESSON CORP has improved earnings per share by 40.5% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, MCKESSON CORP increased its bottom line by earning $5.83 versus $5.62 in the prior year. This year, the market expects an improvement in earnings ($10.61 versus $5.83).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Health Care Providers & Services industry average. The net income increased by 43.2% when compared to the same quarter one year prior, rising from $259.00 million to $371.00 million.
- Powered by its strong earnings growth of 40.54% and other important driving factors, this stock has surged by 64.87% over the past year, outperforming the rise in the S&P 500 Index during the same period. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
- Net operating cash flow has increased to $2,664.00 million or 20.70% when compared to the same quarter last year. Despite an increase in cash flow, MCKESSON CORP's cash flow growth rate is still lower than the industry average growth rate of 37.05%.
- You can view the full McKesson Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
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