MCK Stock Analysis: Buy, Sell, or Hold?
MCK - McKesson Corporation
$766.55
2.64 (0.35%)
▲
5d:
-2.4%
30d:
+0.06%
90d:
-13.08%
BUY
HIGH Confidence
Analysis Updated: Jun 24, 2026 12:00 AM ET
Earnings: Aug 05, 2026
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Interactive Price Chart (1 Month)
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Bottom Line:
✅ BUY SIGNAL: MCK appears deeply undervalued. Market expects -4.1% annual earnings decline despite 37% recent earnings growth. Contrarian opportunity at discount to historical valuation.
✅ BUY SIGNAL: MCK appears deeply undervalued. Market expects -4.1% annual earnings decline despite 37% recent earnings growth. Contrarian opportunity at discount to historical valuation.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$1306.66
Based on 8.6% avg growth
INTRINSIC VALUE TODAY
$811.33
5.5% Margin of Safety
How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 19.7x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: MCK is currently trading at $766.55, which is considered slightly low relative to its 30-day fair value range of $742.02 to $778.85. From a valuation perspective, the stock is trading at a discount (Forward PE: 17.4) compared to its historical average (19.7). Remarkably, the market is currently pricing in an annual earnings decline of 4.1% over the next few years. This pessimistic expectation contrasts with the company's recent 37.2% earnings growth, suggesting potential undervaluation if the company simply maintains stability.
Technical Outlook: Technically, MCK is in a strong downtrend. The price is approaching resistance at $787.26. A breakout above this level would be a bullish signal, while rejection here could lead to consolidation.
Market Sentiment: MCK has a strong technical setup (60/100), with favorable trendlines, momentum, and price action for short-term traders. Wall Street analysts see significant upside, with an average price target of $941.40 (+22.8%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Technical Outlook: Technically, MCK is in a strong downtrend. The price is approaching resistance at $787.26. A breakout above this level would be a bullish signal, while rejection here could lead to consolidation.
Market Sentiment: MCK has a strong technical setup (60/100), with favorable trendlines, momentum, and price action for short-term traders. Wall Street analysts see significant upside, with an average price target of $941.40 (+22.8%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Quick Decision Summary
Current Position
SLIGHTLY LOW
Historical Trading Range
$742.02 -
$778.85
Company Quality Score
61/100
(BUY)
Volume Confirmation
HIGH
Confidence Score
90.5%
All Signals
- BULLISH: Price oversold vs 30-day range
- BULLISH: Strong technical setup (60/100)
- BULLISH: High volume confirmation
- BULLISH: Trading 22.8% below Wall St target ($941.40)
Trading Range Analysis
30-Day Trading Range
$742.02 -
$778.85
Current vs Trading Range
SLIGHTLY LOW
Support & Resistance Levels
Support Level
$729.19
Resistance Level
$787.26
Current Trend
Strong Downtrend
Technical data as of
Jun 9, 2026
Fundamental Context
Forward P/E (Next Year Est.)
17.38
Wall Street Target
$941.40
(+22.8%)
Revenue Growth (YoY)
6.0%
Earnings Growth (YoY)
37.2%
Profit Margin
1.2%
Valuation Discount vs History
-4.1% cheaper
PE vs Historical
17.4 vs 19.7
CHEAP
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-4.1%
(market-implied from PE analysis)
1-Year Target
$735.12
(-4%)
2-Year Target
$704.98
(-8%)
3-Year Target
$676.08
(-12%)
3-Yr Target (if PE normalizes)
(PE: 17→20)
$766.35
(0%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 21.8, Growth: 13.1%)
$1388.13
(+81%)
Base:
(SPY PE: 17.4, Growth: 13.1%)
$1107.67
(+45%)
Bear:
(PE: 14.8, Growth: 13.1%)
$941.52
(+23%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (20x PE), but valuation improves significantly next year (17x PE) as earnings recover.
Trailing PE: 19.92 | Current EPS (TTM): $38.35
Bull Case
$966.43
(+26%)
Analyst growth 15.0%, PE expands to 21.9
Base Case
$878.58
(+15%)
Market implied 15.0%, PE stable at 19.9
Bear Case
$519.46
(-32%)
Severe decline -20.0%, PE contracts to 16.9
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
💡
Upside Surprise Potential
If earnings stabilize (0% growth), PE could expand from 17.4 to 19.7
Stabilization Target:
$868.90
(+13.4%)
PE Expansion Potential:
+13.4%
Share & Embed Analysis
Last updated: June 24, 2026 8:12 PM ET
Data refreshes hourly during market hours. Next update: 9:12 PM
Data refreshes hourly during market hours. Next update: 9:12 PM
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| Ticker | Score | Recommendation | Change % |
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Technical Signals Check
Is MCK showing a specific setup today?
Insider Activity (6 Months)
3
Buys
6
Sells
Net
INSIDERS SELLING
Recent Transactions
Ro Khanna
SELL
2026-03-23
Michele Lau
SELL
2725 shares
2026-03-02
Ro Khanna
BUY
2026-02-24
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