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

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.

McKesson ( MCK) pushed the Wholesale industry lower today making it today's featured Wholesale laggard. The industry as a whole was unchanged today. By the end of trading, McKesson fell $1.59 (-1.2%) to $127.91 on heavy volume. Throughout the day, 1,740,586 shares of McKesson exchanged hands as compared to its average daily volume of 972,400 shares. The stock ranged in price between $127.45-$129.72 after having opened the day at $129.11 as compared to the previous trading day's close of $129.50. Other companies within the Wholesale industry that declined today were: Rada Electronics Industries ( RADA), down 8.8%, InfoSonics Corporation ( IFON), down 3.6%, SED International Holdings ( SED), down 3.6% and Armco Metals Holdings ( CNAM), down 2.9%.

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 $30.0 billion and is part of the services sector. Shares are up 35.4% year to date as of the close of trading on Monday. Currently there are 8 analysts that rate McKesson a buy, no analysts rate it a sell, and 6 rate it a hold.

TheStreet 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.

On the positive front, Speed Commerce ( SPDC), up 6.2%, Navarre Corporation ( NAVR), up 6.2%, Aegean Marine Petroleum Network ( ANW), up 3.9% and Crystal Rock Holdings ( CRVP), up 3.5%.

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.
null

If you liked this article you might like

House Committee: 2 Pharmacy Managers Sent 12.3 Million Opioid Doses to 1 Store

House Committee: 2 Pharmacy Managers Sent 12.3 Million Opioid Doses to 1 Store

Who Says There Are No Second Chances?

Who Says There Are No Second Chances?

Medical Supply Stocks Get Hit in Latest Example of the 'Amazon Effect'

Medical Supply Stocks Get Hit in Latest Example of the 'Amazon Effect'

Purdue Pharma to Downplay Opioids, Dump 50% of Sales Staff

Purdue Pharma to Downplay Opioids, Dump 50% of Sales Staff

Drug Supply Chain Stocks Dip After White House Recommendations on Drug Pricing

Drug Supply Chain Stocks Dip After White House Recommendations on Drug Pricing