McKesson’s Scale, Revenue and EPS Growth Make It a Compelling Pick

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McKesson’s shares have fallen 8.1% over the past six months to $763.33, underperforming the S&P 500’s 6.8% gain, but the company’s fundamentals remain strong. Revenue grew at an 11.1% compound annual rate over five years, slightly above the healthcare sector average, while EPS expanded at 17.9% annually, signaling improving profitability. With $403.4 billion in trailing 12-month revenue, McKesson’s massive scale provides negotiating leverage with suppliers in the low-margin pharmaceutical distribution business. The stock now trades at 17.2 times forward earnings.

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Health Care▲ · 1 stocks
McKesson Corporation
MCK
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Article highlights McKesson's strong revenue and EPS growth, scale, and attractive valuation, making it a compelling investment pick.