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 0.9%. By the end of trading, McKesson fell $1.79 (-1.6%) to $112.87 on average volume. Throughout the day, 1,020,708 shares of McKesson exchanged hands as compared to its average daily volume of 1,249,300 shares. The stock ranged in price between $112.72-$114.31 after having opened the day at $113.63 as compared to the previous trading day's close of $114.66. Other companies within the Wholesale industry that declined today were: Aegean Marine Petroleum Network ( ANW), down 4.0%, Houston Wire & Cable Company ( HWCC), down 3.6%, Chefs Warehouse Holdings ( CHEF), down 3.3% and Armco Metals Holdings ( CNAM), down 3.1%.
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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 $25.8 billion and is part of the services sector. The company has a P/E ratio of 20.4, above the S&P 500 P/E ratio of 17.7. Shares are up 17.5% year to date as of the close of trading on Monday. Currently there are 7 analysts that rate McKesson a buy, no analysts rate it a sell, and 5 rate it a hold.

TheStreet Ratings rates McKesson as a buy. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, solid stock price performance, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, Universal Power Group ( UPG), down 4.1%, AmerisourceBergen ( ABC), down 2.0%, China Auto Logistics ( CALI), down 1.7% and Commercial Vehicle Group ( CVGI), down 1.5%.

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).

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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