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 up 1.5%. By the end of trading, McKesson fell $2.04 (-1.9%) to $103.19 on heavy volume. Throughout the day, 3.6 million shares of McKesson exchanged hands as compared to its average daily volume of 1.2 million shares. The stock ranged in price between $102.47-$105.86 after having opened the day at $103.48 as compared to the previous trading day's close of $105.23. Another company within the Wholesale industry that decreased today was Susser Petroleum Partners ( SUSP), down 3.5%.
  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

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 $24.94 billion and is part of the services sector. The company has a P/E ratio of 16.2, below the S&P 500 P/E ratio of 17.7. Shares are up 9% year to date as of the close of trading on Thursday. Currently there are seven 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, notable return on equity and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the positive front, SED International Holdings ( SED), up 20.7%, Rada Electronics Industries ( RADA), up 8.1%, Lawson Products ( LAWS), up 6.2%, and China Metro-Rural Holdings ( CNR), up 5.7%, were all gainers within the wholesale industry with Sysco Corporation ( SYY) being today's featured wholesale industry leader.

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).

It's Official: Action Alerts PLUS beats the S&P 500 with Dividends Reinvested! Cramer and Link were up 16.72% in 2012. Were you? See what they are trading for 14-days FREE.
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