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McKesson Corporation (MCK) Stock Analysis

SellModerate Confidence

Healthcare · Medical Distribution

Sell if holding. Engine safety override at $761.89: Quality below floor (3.5 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.9/10 and A.R:R 1.8:1 is above the 1.5:1 BUY gate. Specifically: Below-average business quality; Below long-term trend.

McKesson is a diversified healthcare services company with four segments—North American Pharmaceutical distribution, Oncology & Multispecialty, Prescription Technology Solutions, and Medical-Surgical Solutions—serving pharmacies, hospitals, and providers across North America.... Read more

$761.89+12.2% A.UpsideScore 5.9/10#1 of 5 Medical Distribution
QualityF-score6 / 9FCF yield6.07%
IncomeYield0.42%(5y avg 0.53%)Payout8.26%sustainable
Stop $711.39Target $854.76(analyst − 10%)A.R:R 1.8:1
Analyst target$949.73+24.7%15 analysts
$854.76our TP
$761.89price
$949.73mean
$1065

Sell if holding. Engine safety override at $761.89: Quality below floor (3.5 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.9/10 and A.R:R 1.8:1 is above the 1.5:1 BUY gate. Specifically: Below-average business quality; Below long-term trend. Chart setup: No recognized chart pattern (not a breakout, bounce, continuation, recovery, falling knife, or range) — technicals mixed. Score 5.9/10, moderate confidence.

Passes 8/8 gates (positive momentum, favorable risk/reward ratio, clean insider activity, no SEC red flags, news boost analyst 0.40, earnings proximity 78d clear, semi cycle peak clear, materials cycle peak clear). Suitability: moderate.

Recent Developments — McKesson Corporation

Material events (past 30 days)

  • Apr 28, 2026 MEDIUM Item 1.02: McKesson terminated its existing $1.0B 364-day and $4.0B five-year revolving credit facilities on April 24, 2026, replacing them with a new consolidated $5B revolving credit facility. Successor agreement in place.

Generated 2026-05-20T21:06:21Z.

Thesis

Rewards
Recent Analyst detected in news
Risks
Quality below floor (3.5 < 4.0)

Key Metrics

P/E (TTM)20.2
P/E (Fwd)15.4
Mkt Cap$93.3B
EV/EBITDA14.4
Profit Mgn1.2%
ROE
Rev Growth6.0%
Beta0.35
Dividend0.42%
Rating analysts23

Quality Signals

Piotroski F6/9

Options Flow

P/C0.82neutral
IV34%normal

Material Events(8-K, last 90d)

  • 2026-04-28Item 1.02MEDIUM
    McKesson terminated its existing $1.0B 364-day and $4.0B five-year revolving credit facilities on April 24, 2026, replacing them with a new consolidated $5B revolving credit facility. Successor agreement in place.
    SEC filing →
  • 2026-03-05Item 5.02MEDIUM
    CFO Britt J. Vitalone gave notice of retirement; last day as CFO May 28, 2026. Kenny K. Cheung (former CFO of Sysco) appointed new CFO effective May 29, 2026. Clean handoff.
    SEC filing →

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer

Rating Breakdown

1 floor-breaker

Quality below the gate floor. Component breakdown shows what dragged the score down.static

Gross Margin
0.0
Net Margin
0.6
Operating Margin
0.9
Roa
3.3
Current Ratio
3.4
Moat
4.9
Piotroski F
6.7
Fcf Quality
7.9
No competitive moat
GatesMomentum 5.9>=5.5A.R:R 1.8 ≥ 1.5Insider activity: OKNo SEC red flagsNEWS BOOST ANALYST 0.40EARNINGS PROXIMITY 78d clearSEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARSuitability: Moderate
RSI
34 · Neutral
20D MA 50D MA 200D MAGOLDEN CROSSSupport $723.68Resistance $847.05

Price Targets

$711
$855
A.Upside+12.2%
A.R:R1.8:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeSteady

Risk Alerts

! Quality below floor (3.5 < 4.0)

Earnings

B
B
B
B
4/4 beats
Next Earnings2026-08-05 (78d)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is MCK stock a buy right now?

Sell if holding. Engine safety override at $761.89: Quality below floor (3.5 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.9/10 and A.R:R 1.8:1 is above the 1.5:1 BUY gate. Specifically: Below-average business quality; Below long-term trend. Chart setup: No recognized chart pattern (not a breakout, bounce, continuation, recovery, falling knife, or range) — technicals mixed. Prior stop was $711.39. Score 5.9/10, moderate confidence.

What is the MCK stock price target?

Take-profit target: $854.76 (+12.2% upside). Prior stop was $711.39. Stop-loss: $711.39.

What are the risks of investing in MCK?

Quality below floor (3.5 < 4.0).

Is MCK overvalued or undervalued?

McKesson Corporation trades at a P/E of 20.2 (forward 15.4). TrendMatrix value score: 6.9/10. Verdict: Sell.

What do analysts say about MCK?

23 analysts cover MCK with a consensus score of 4.2/5. Average price target: $950.

What does McKesson Corporation do?McKesson is a diversified healthcare services company with four segments—North American Pharmaceutical distribution,...

McKesson is a diversified healthcare services company with four segments—North American Pharmaceutical distribution, Oncology & Multispecialty, Prescription Technology Solutions, and Medical-Surgical Solutions—serving pharmacies, hospitals, and providers across North America. With 43,000+ employees and 27 U.S. pharmaceutical distribution centers, it has announced plans to separate its Medical-Surgical segment.

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