Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link. Trade-Ideas LLC identified McKesson ( MCK) as a new lifetime high 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 $105.7 million.
- MCK has traded 1.3 million shares today.
- MCK is trading at a new lifetime high.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in MCK with the Ticky from Trade-Ideas. See the FREE profile for MCK NOW at Trade-Ideas More details on MCK: 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. The stock currently has a dividend yield of 0.8%. MCK has a PE ratio of 20.3. Currently there are 7 analysts that rate McKesson a buy, no analysts rate it a sell, and 6 rate it a hold. The average volume for McKesson has been 999,300 shares per day over the past 30 days. McKesson has a market cap of $28.4 billion and is part of the services sector and wholesale industry. The stock has a beta of 0.93 and a short float of 0.6% with 1.60 days to cover. Shares are up 29.9% year to date as of the close of trading on Tuesday. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more. TheStreetRatings.com Analysis: TheStreet Quant Ratings rates McKesson as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures, solid stock price performance and growth in earnings per share. We feel these strengths outweigh the fact that the company shows low profit margins. Highlights from the ratings report include:
- MCK's revenue growth has slightly outpaced the industry average of 4.0%. Since the same quarter one year prior, revenues slightly increased by 4.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Net operating cash flow has significantly increased by 229.71% to $716.00 million when compared to the same quarter last year. In addition, MCKESSON CORP has also vastly surpassed the industry average cash flow growth rate of -29.26%.
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 38.68% over the past year, a rise that has exceeded that of the S&P 500 Index. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- MCKESSON CORP has improved earnings per share by 14.6% in the most recent quarter compared to the same quarter a year ago. Stable earnings per share over the past year indicate the company has sound management over its earnings and share float. We anticipate these figures will begin to experience more growth in the coming year. During the past fiscal year, MCKESSON CORP reported lower earnings of $5.59 versus $5.60 in the prior year. This year, the market expects an improvement in earnings ($8.30 versus $5.59).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Health Care Providers & Services industry average. The net income increased by 11.6% when compared to the same quarter one year prior, going from $380.00 million to $424.00 million.
- You can view the full McKesson Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.