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 news catalysts, and favorable analyst ratings outweigh the technical indicators and insider selling trends.
The MACD histogram is negative and expanding, indicating bearish momentum. RSI is neutral at 27.707, and moving averages are converging, showing no strong directional trend. The stock is trading near its support level of 830.612, which could present a buying opportunity.
Strong Q3 financial performance with revenue up 11.40% YoY, net income up 34.93% YoY, and EPS up 38.18% YoY.
Recent $1.25 billion investment deal with Apollo Funds, valuing the Medical-Surgical Solutions unit at $13 billion, showcasing strategic growth initiatives.
Quarterly dividend declaration of $0.82 per share, reflecting shareholder returns.
Insider selling has increased by 144.45% over the last month, which may signal a lack of confidence from insiders.
The MACD and technical indicators suggest bearish momentum in the short term.
Mixed analyst sentiment with some price target reductions and concerns about FY27 EBIT guidance in the Prescription Technology Solutions segment.
In Q3 2026, McKesson reported strong growth metrics: Revenue increased to $106.16 billion (up 11.40% YoY), Net Income rose to $1.186 billion (up 34.93% YoY), EPS increased to $9.59 (up 38.18% YoY), and Gross Margin improved to 3.46% (up 1.47% YoY).
Analyst sentiment is generally positive, with multiple firms maintaining Buy or Outperform ratings. However, there have been slight price target reductions, such as UBS lowering its target to $1,000 from $1,012 and Evercore ISI reducing its target to $950 from $1,000. The average price target remains significantly above the current price, indicating upside potential.
