McKesson Corp (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 closed the day down 0.4%. By the end of trading, McKesson fell $1.59 (-1.0%) to $156.75 on average volume. Throughout the day, 1,507,945 shares of McKesson exchanged hands as compared to its average daily volume of 1,728,200 shares. The stock ranged in price between $156.00-$158.46 after having opened the day at $157.64 as compared to the previous trading day's close of $158.34. Other companies within the Wholesale industry that declined today were: InfoSonics Corporation ( IFON), down 5.9%, Hudson Technology ( HDSN), down 5.4%, Chindex International ( CHDX), down 4.2% and China Auto Logistics ( CALI), down 2.3%.

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 $36.7 billion and is part of the services sector. The company has a P/E ratio of 26.9, above the S&P 500 P/E ratio of 17.7. Shares are up 63.3% year to date as of the close of trading on Wednesday. Currently there are 10 analysts that rate McKesson a buy, 1 analyst rates it a sell, and 3 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, solid stock price performance, growth in earnings per share, 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 shows weak operating cash flow.

On the positive front, LB Foster Company ( FSTR), up 5.1%, Armco Metals Holdings ( AMCO), up 3.9%, Beacon Roofing Supply ( BECN), up 3.0% and MWI Veterinary Supply ( MWIV), up 2.3%.

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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