McKesson Inc. (MCK): Today's Featured Wholesale Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

McKesson ( MCK) pushed the Wholesale industry lower today making it today's featured Wholesale laggard. The industry as a whole closed the day down 0.5%. By the end of trading, McKesson fell $1.11 (-1.2%) to $89.60 on light volume. Throughout the day, 1.2 million shares of McKesson exchanged hands as compared to its average daily volume of 1.6 million shares. The stock ranged in price between $89.43-$90.24 after having opened the day at $89.97 as compared to the previous trading day's close of $90.71. Other companies within the Wholesale industry that declined today were: Lawson Products ( LAWS), down 9.1%, Aegean Marine Petroleum Network ( ANW), down 6.7%, Senomyx ( SNMX), down 4.7%, and Navarre Corporation ( NAVR), down 4.6%.
  • ACTIVE STOCK TRADERS: Get full access to Jim Cramer's thoughts for less than $3/week - sometimes before he says them on TV! Start with a 14-Day Free Trial.

McKesson Corporation, together with its subsidiaries, delivers pharmaceuticals, medical supplies, and health care information technologies to the healthcare industry primarily in the United States. It operates in two segments, McKesson Distribution Solutions and McKesson Technology Solutions. McKesson has a market cap of $21.29 billion and is part of the services sector. The company has a P/E ratio of 14.9, equal to the average wholesale industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are up 16.4% year to date as of the close of trading on Monday. Currently there are eight analysts that rate McKesson a buy, no analysts rate it a sell, and five rate it a hold.

TheStreet Ratings rates McKesson as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, revenue growth and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the wholesale industry could consider iShares Dow Jones US Cons Goods ( IYK) while those bearish on the wholesale industry could consider ProShares Ultra Sht Consumer Goods ( SZK).

FREE from Real Money's Jim Cramer: Winners and Losers Election 2012 - Steps to take NOW so you can profit no matter who is in charge! Free download now.
null

If you liked this article you might like

How World's Largest Drug Distributor Is Helping Harvey Victims Treat Snakebites

J&J Enters Death Penalty Debate, Protests Use of Drug in Lethal Injection

Eclipse in the USA: Then and Now

Finding Value in a Pricey Environment

Allscripts Stock Climbs, Cantor Upgrades After McKesson Deal