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

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 higher today making it today's featured wholesale winner. The industry as a whole closed the day up 1.2%. By the end of trading, McKesson rose $1.30 (1.3%) to $104.83 on average volume. Throughout the day, one million shares of McKesson exchanged hands as compared to its average daily volume of 1.2 million shares. The stock ranged in a price between $103.82-$105 after having opened the day at $103.82 as compared to the previous trading day's close of $103.53. Other companies within the Wholesale industry that increased today were: Rada Electronics Industries ( RADA), up 9.3%, China Auto Logistics ( CALI), up 7.6%, Hudson Technology ( HDSN), up 5%, and Addvantage Technologies Group ( AEY), up 4.8%.
  • 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 $24.17 billion and is part of the services sector. The company has a P/E ratio of 15.8, below the S&P 500 P/E ratio of 17.7. Shares are up 7.1% year to date as of the close of trading on Monday. 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, revenue growth, notable return on equity, growth in earnings per share 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.

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

More from Markets

Ackman Investment Buoys Lowe's; DraftKings Responds to FanDuel Merger -- ICYMI

Ackman Investment Buoys Lowe's; DraftKings Responds to FanDuel Merger -- ICYMI

Replay: Jim Cramer on the Markets, Tiffany, Micron Technology and Union Pacific

Replay: Jim Cramer on the Markets, Tiffany, Micron Technology and Union Pacific

Carnival CEO Arnold Donald: China Will Become the Largest Cruise Market

Carnival CEO Arnold Donald: China Will Become the Largest Cruise Market

Red Robin Slumps After Earnings Miss

Red Robin Slumps After Earnings Miss

Owner of Moviepass Sees Stock Plummet

Owner of Moviepass Sees Stock Plummet