McKesson Keeps Growing, Eyeing Bigger Future

MCK is the nation’s largest pharmaceutical distributor to hospitals, retail pharmacies, and medical offices. It has four business lines: U.S. Pharmaceutical, Prescription Technology Solutions, Medical-Surgical Solutions, and International. In its quest for growth, MCK acquired a national eye care company last month, which boosts the company’s overall care capabilities.

On the earnings front, MCK reported third-quarter fiscal 2025 earnings, showing 18% revenue growth (to $95.3 billion) and increased per-share earnings guidance of up to 20% year-over-year growth. The U.S. Pharmaceutical segment grew revenue by 19%, while Prescription Technology Services revenue jumped 14%. The company also plans more share repurchases and to pay a quarterly dividend of $0.71 per share, marking 17 consecutive years of dividend growth.

It’s no wonder MCK shares are up 9% this year – and they could rise more. MAPsignals data shows how Big Money investors are betting heavily on the forward picture of the stock.

Big Money Loves McKesson

Institutional volumes reveal plenty. In the last year, MCK has enjoyed strong investor demand, which we believe to be institutional support.

Each green bar signals unusually large volumes in MCK shares. They reflect our proprietary inflow signal, pushing the stock higher:

Plenty of health care names are under accumulation right now. But there’s a powerful fundamental story happening with McKesson.

McKesson Fundamental Analysis

Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, MCK has had strong sales and earnings growth:

• 3-year sales growth rate (+9.1%)
• 3-year EPS growth rate (+117.1%)

Source: FactSet

Also, EPS is estimated to ramp higher this year by +12.4%.

Now it makes sense why the stock has been powering to new heights. MCK has a track record of strong financial performance.

Marrying great fundamentals with our proprietary software has found some big winning stocks over the long term.

McKesson has been a top-rated stock at MAPsignals for a long time. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

It’s made the rare Top 20 report multiple times in the last year. The blue bars below show when MCK was a top pick…rising with the buys:

Tracking unusual volumes reveals the power of money flows.

This is a trait that most superstar stocks exhibit…the best of the best. Big Money demand drives stocks higher.

McKesson Price Prediction

The MCK rally isn’t new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author holds no position in MCK at the time of publication.

If you are a Registered Investment Advisor (RIA) or are a serious investor, take your investing to the next level, learn more about the MAPsignals process here.