Trade-Ideas LLC identified

McKesson

(

MCK

) as a post-market laggard 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 $192.2 million.
  • MCK is down 2.5% today from today's close.

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More details on MCK:

McKesson Corporation operates as a pharmaceutical distribution services and information technology company in the United States and internationally. It offers pharmaceuticals and medical supplies, and services for healthcare operations. The stock currently has a dividend yield of 0.6%. MCK has a PE ratio of 2. Currently there are 8 analysts that rate McKesson a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for McKesson has been 1.5 million shares per day over the past 30 days. McKesson has a market cap of $44.1 billion and is part of the services sector and wholesale industry. The stock has a beta of 0.95 and a short float of 0.9% with 2.45 days to cover. Shares are down 0.5% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates McKesson as a

buy

. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, revenue growth, notable return on equity and good cash flow from operations. We feel its strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:

  • MCKESSON CORP has improved earnings per share by 16.6% 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 two years. We feel that this trend should continue. During the past fiscal year, MCKESSON CORP increased its bottom line by earning $9.83 versus $7.54 in the prior year. This year, the market expects an improvement in earnings ($13.65 versus $9.83).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Health Care Providers & Services industry. The net income increased by 226.5% when compared to the same quarter one year prior, rising from $132.00 million to $431.00 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 11.8%. Since the same quarter one year prior, revenues slightly increased by 3.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. When compared to other companies in the Health Care Providers & Services industry and the overall market, MCKESSON CORP's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.
  • Net operating cash flow has significantly increased by 64.94% to $3,106.00 million when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 35.30%.

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