Stock Price & Analysis

Buy MCK stock as it has shown strong growth and stability, with a 284% surge since 2020 driven by strategic expansions and acquisitions. Analysts maintain a buy rating with a price target of $675, indicating confidence in its continued growth.

MCK stock is predicted to reach $680 in 2025, driven by stronger Pharma growth and cost-cutting measures. Analysts highlight expanding specialty pharmaceuticals and oncology services as key growth drivers.

The S1 support level for MCK Stock is $656.46 ,The R1 resistant level for MCK Stock is $688.67.

As of the end of day on 2025-04-02, the price of MCK Stock was $690.79.

The target price for MCK Stock according to analyst rating is 684.00, with the highest price target at 732.00 and the lowest at 630.00. Analysts have a Strong Buy rating on MCK Stock overall.

The market cap of MCK is $86.9B.

Analysis and Insights

MCK (McKesson Corp) appears to be slightly overvalued based on current valuation metrics and financial performance.

Valuation Analysis:

• PE Ratio: MCK's forward P/E ratio of 26.1 (2025/Q1) is higher than its historical average, suggesting elevated valuations compared to earnings.
• EV/EBITDA: The EV/EBITDA ratio of 13.93 indicates a premium valuation relative to earnings and debt levels.
• Dividend Yield: The current dividend yield of 0.42% is relatively low, offering limited income appeal for investors.

Financial Performance:

• Revenue Growth: Total revenue has consistently increased, reaching $95.29 billion in 2025/Q3, reflecting strong operational performance.
• Net Income Volatility: Net income has fluctuated significantly, with Q2 2025 showing a sharp decline to $241 million from $915 million in Q1, raising concerns about profitability consistency.
• Gross Margin: The gross margin of 4.66% in 2025/Q3 is relatively low, indicating tight profitability in its core operations.

Analyst Sentiment:

• Ratings: Analysts maintain a mixed outlook, with a consensus rating of "Hold" and an average price target of $641, representing a modest 6.24% upside potential.

Conclusion:

While MCK's revenue growth and sector position are positives, its high valuation multiples, inconsistent net income, and low dividend yield suggest the stock may be slightly overvalued. Investors should exercise caution and consider waiting for a pullback or clearer signs of sustained profitability.

McKesson Corporation is a provider of diversified healthcare services. The Company is engaged in advancing health outcomes for patients everywhere. Its U.S. Pharmaceutical segment distributes branded, generic, specialty, biosimilar, and over the counter (OTC) pharmaceutical drugs and other healthcare-related products in the United States. Its Prescription Technology Solutions segment helps solve medication access, affordability, and adherence challenges for patients by working across healthcare to connect patients, pharmacies, providers, pharmacy benefit managers, health plans, and biopharma companies. Its Medical-Surgical Solutions segment provides medical-surgical supply distribution, logistics, and other services to healthcare providers, including physician offices, surgery centers, nursing homes, hospital reference labs, and home healthcare agencies. Its International segment provides distribution and services to wholesale, institutional, and retail customers in Europe and Canada.

McKesson's stock is projected to reach $700 by 2030, driven by its strong position in specialty pharmaceuticals and oncology growth. The company's strategic acquisitions and stable cash generation during market volatility support this outlook. Analysts expect continued upward momentum due to its defensive characteristics and expanding healthcare infrastructure role.

MCK has a total of 45000 employees.