MCK

Rite Aid's Financial Struggles: Rite Aid is considering a potential bankruptcy filing again after its recent restructuring did not lead to sustainable operations, with reports indicating it may also pursue the sale of its business as an alternative.

Impact of Previous Bankruptcy: The company previously emerged from Chapter 11 bankruptcy, having closed numerous stores and sold assets, but now faces risks of further liquidation if a sale does not occur.

U.S. Stock Market Performance: U.S. stocks declined significantly, with the Dow Jones index dropping over 1,200 points on Thursday, while Lamb Weston Holdings saw a notable increase in shares after reporting strong quarterly earnings and positive sales guidance.

Gains Among Other Stocks: Several companies experienced stock price increases, including Goodyear Tire & Rubber (up 12.5%), Northern Dynasty Minerals (up 12%), and Kroger Co. (up 4.7%), amidst a generally downward trend in the market.

Power Inflow Signal: McKesson Inc. (MCK) experienced a significant Power Inflow trading signal at $681.16, indicating potential upward momentum and a bullish outlook for traders utilizing order flow analytics.

Market Performance Update: Following the Power Inflow, MCK's stock reached a high of $695.23 and closed at $693.51, highlighting the importance of having a trading plan that includes profit targets and stop losses to manage risk effectively.

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Acquisition Announcement: McKesson Corporation has completed the acquisition of an 80% controlling interest in PRISM Vision Holdings for approximately $850 million, enhancing its ophthalmology and retina management services platform.

Earnings Release Date: McKesson will release its fourth quarter and full year fiscal 2025 financial results on May 8, 2025, followed by a live webcast for investors at 4:30 PM Eastern Time.

Stock Performance: McKesson Corp's shares have surpassed the average analyst 12-month target price of $686.40, currently trading at $693.53, prompting analysts to consider either downgrading their valuations or raising their target prices based on recent business developments.

Analyst Insights: The average target price is derived from various analysts, with estimates ranging from $630.00 to $732.00, indicating differing opinions on the stock's future performance and encouraging investors to evaluate whether to hold or sell their shares.

Payment to McKesson Corporation: The Department of Veterans Affairs made a $634 million payment to McKesson Corporation on February 1, 2025, as part of their Pharmaceutical Prime Vendor contract, contributing to over $8.3 billion in award payments to the company in the past year.

Stock Trading Activity: In the last six months, members of Congress have traded McKesson stock five times (four purchases and one sale), while insiders sold shares eight times without any purchases, indicating varied trading activity among different stakeholders.

McKesson's Stock Performance: McKesson (MCK) closed at $660.86, slightly down by 0.05%, while the S&P 500 gained 1.77%. The company has seen a 10.62% increase in shares over the past month, contrasting with losses in the Medical sector and S&P 500.

Earnings Forecast and Valuation: McKesson is expected to report an EPS of $9.81, a 58.74% increase year-over-year, with projected revenues of $93.09 billion. The company holds a Zacks Rank of #3 (Hold) and trades at a Forward P/E ratio of 20.18, above the industry average.

MCKESSON CORP Analysis: MCKESSON CORP (MCK) has received an 88% rating using the P/B Growth Investor model by Partha Mohanram, indicating strong interest based on its fundamentals and valuation as a large-cap growth stock in the Major Drugs industry.

Partha Mohanram's Contribution: Partha Mohanram, known for his research on growth investing, developed a model that challenges traditional views and aims to identify sustainable growth stocks, enhancing investment strategies beyond conventional methods.

MCKESSON CORP Analysis: MCKESSON CORP (MCK) has received an 88% rating using the P/B Growth Investor model by Partha Mohanram, indicating strong interest based on its fundamentals and valuation as a large-cap growth stock in the Major Drugs industry.

Partha Mohanram's Contribution: Partha Mohanram, known for his research on growth investing, developed a model that challenges traditional views and aims to identify sustainable growth stocks, enhancing investment strategies beyond conventional methods.

McKesson's Stock Performance: McKesson's stock has surged 284% since 2020, significantly outperforming Google, with substantial revenue growth driven by its role in COVID-19 response and expansion in specialty pharmaceuticals.

Strategic Growth Factors: The company's earnings have doubled due to increased sales, strategic acquisitions, and share repurchases, while maintaining stability during market downturns, making it an attractive investment option compared to individual stocks.

Reflection on the Past: The author recalls the significant moment two years ago when the "Magnificent Seven" emerged, coinciding with the collapse of Silicon Valley Bank while he was in Florida.

Personal Experience: Amidst the chaos, the author humorously shares his experience of buying makeup at Target to prepare for a Zoom call, highlighting the blend of personal and professional challenges during that time.

MCKESSON CORP Analysis: MCKESSON CORP (MCK) has received an 88% rating using the P/B Growth Investor model by Partha Mohanram, indicating strong interest based on its fundamentals and valuation as a large-cap growth stock in the Major Drugs industry.

Partha Mohanram's Contribution: Partha Mohanram, known for his research on growth investing, developed a model that challenges traditional views and aims to identify sustainable growth stocks, enhancing investment strategies beyond conventional methods.

Market Overview: The S&P 500 is expected to open higher despite closing in correction territory, influenced by President Trump's new tariff threats which have negatively impacted stocks.

Company Updates: Tesla has warned about potential retaliatory tariffs and faced a price target reduction from Wells Fargo due to declining sales in Europe; meanwhile, Danaher received an upgrade from Stifel, indicating improved stock stability.

Cencora's Market Performance: Cencora, Inc. has a market cap of $50.5 billion and operates in pharmaceutical distribution, showing resilience with a 12.4% share increase over the past three months despite a slight decline from its 52-week high. The company reported strong Q1 2025 earnings, surpassing forecasts, and raised its adjusted EPS outlook for fiscal 2025.

Analyst Outlook: Analysts maintain a "Strong Buy" consensus on Cencora, which is currently trading below the mean price target of $282.07, indicating positive investor sentiment compared to its rival McKesson Corporation, which has shown slightly lower year-to-date performance.

MCKESSON CORP Analysis: MCKESSON CORP (MCK) received a high rating of 93% from Validea's Multi-Factor Investor model, indicating strong interest based on its low volatility, momentum, and high net payout yields in the Major Drugs industry.

Pim van Vliet's Strategy: The investment strategy developed by Pim van Vliet emphasizes that low volatility stocks can outperform high volatility ones with less risk, supported by his research and publication on conservative factor investing.

Company Overview: McKesson Corporation, valued at $80.4 billion, is a major healthcare services and IT company with four segments, but its stock has declined 9.6% from its 52-week high despite outperforming the Dow Jones in recent months.

Financial Performance: Following a weaker-than-expected Q3 earnings report, McKesson's shares fell 1.2%, raising concerns about revenue declines in its Medical-Surgical Solutions segment and negative free cash flow, although it maintains a "Strong Buy" rating from analysts.

52 Week Range and Current Price: ACWV's share price has a 52-week low of $100.89 and a high of $116.08, with the latest trade at $115.17, indicating its position within this range.

ETFs Trading Dynamics: Exchange traded funds (ETFs) operate like stocks but involve trading units that can be created or destroyed based on investor demand, impacting the underlying assets held within the ETFs.

Low-Beta Growth Stocks Recommended: Trivariate Research suggests investors consider Visa, Mastercard, and five other low-beta growth stocks to enhance portfolio performance, especially after advising a reduction in exposure to high-beta tech stocks.

Performance of Selected Stocks: The recommended stocks have shown positive year-to-date gains and possess low beta values, indicating less volatility compared to the overall market.

Payment to McKesson Corporation: The Department of Veterans Affairs made a $716 million payment to McKesson Corporation on January 1, 2025, as part of a pharmaceutical prime vendor contract, with total award payments to the company reaching over $7.7 billion in the past year.

Congressional and Insider Trading Activity: In the last six months, members of Congress have traded McKesson stock six times (four purchases and two sales), while insiders have sold shares seven times without making any purchases; additionally, institutional investors have shown mixed activity towards McKesson stock.