MCKESSON CORP (NYSE:MCK) – A Strong Growth Stock with a Technical Breakout Pattern

MCKESSON CORP (NYSE:MCK) was identified by our screener as a strong growth stock with a favorable technical setup. The company combines solid fundamental growth metrics with a promising chart pattern, making it worth a closer look.

Fundamental Strengths

• Growth: MCK has shown strong revenue and earnings growth, with EPS increasing by 20.71% over the past year and revenue growing by 16.22%. Future growth is also expected to remain healthy, with projected EPS growth of 13.18% annually.
• Valuation: While the stock is not cheap with a P/E of 21.73, it remains reasonably valued compared to industry peers, with 66% of competitors trading at higher multiples.
• Financial Health: The company maintains a solid balance sheet, with a strong Altman-Z score of 5.93, indicating low bankruptcy risk. Debt levels are manageable, with a favorable Debt-to-FCF ratio of 1.08.
• Profitability: MCK’s Return on Invested Capital (ROIC) of 30.35% outperforms 98% of its industry peers, reflecting efficient capital allocation.

Technical Setup

• Trend: The long-term trend remains positive, and the stock is trading near its 52-week high, signaling strength.
• Consolidation: Prices have been consolidating between $697.93 and $736.96, forming a potential breakout zone.
• Support & Resistance: Key support lies around $705.43-$719.29, while resistance sits at $720.11-$732.79. A breakout above this zone could signal further upside.
• Pocket Pivot: A recent pocket pivot signal suggests accumulation, reinforcing the bullish case.

For a deeper dive, review the full fundamental analysis of MCK and the technical analysis report.

Our Strong Growth Stocks with Good Technical Setup screener lists more stocks meeting these criteria and is updated daily.

Disclaimer

This is not investment advice. The observations here are based on current data, but market conditions can change. Always conduct your own research before making investment decisions.