MCK Should I Buy
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McKesson Corp (MCK) is a good buy for a beginner investor with a long-term strategy and $50,000-$100,000 available for investment. The company's strong financial performance, positive analyst sentiment, and growth in key segments like oncology and pharmaceutical distribution outweigh the technical oversold conditions and insider selling trends.
The MACD is negative and expanding, indicating bearish momentum. RSI is at 16.615, signaling oversold conditions. Moving averages are converging, suggesting a potential reversal. Current price is near the S1 support level of 871.766, which could act as a strong support zone.
Strong Q3 financials with 11% revenue growth and 34.93% net income growth.
Significant growth in oncology and pharmaceutical distribution segments, with a 57% operating profit increase in oncology.
Analysts have consistently raised price targets, with the highest target at $1,107, reflecting confidence in the company's growth potential.
Expansion in high-cost therapies like GLP-1, with a 26% YoY revenue increase.
Insider selling has increased by 144.45% over the last month, which may signal caution.
The Medical-Surgical segment showed weak performance with only 1% revenue growth and a 10% decline in operating profit.
Options data shows a high put-call volume ratio (2.43), indicating bearish sentiment in the short term.
In Q3 2026, McKesson reported an 11.4% YoY revenue increase to $106.16 billion, a 34.93% YoY net income increase to $1.186 billion, and a 38.18% YoY EPS increase to $9.59. Gross margin improved slightly to 3.46%, up 1.47% YoY.
Analysts are overwhelmingly positive on McKesson, with multiple firms raising price targets recently. The highest target is $1,107 (JPMorgan), and the lowest is $885 (Mizuho). Most firms maintain Buy or Overweight ratings, citing strong execution, growth in biosimilars, and resilience in the healthcare distribution sector.
