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It’s undoubtedly been a challenging year in the market year-to-date, with all of the major indexes in the red. Coming out of a once-in-a-lifetime pandemic has certainly landed us in an interesting economic environment.
Nonetheless, the market continues to roll on.
Amidst the sea of red, there are still quite a few stocks out there in the green year-to-date, such as McKesson (MCK - Free Report) .
Located in Texas, McKesson is a healthcare services and information technology company that operates through two segments – Distribution Solutions and Technology Solutions. In addition, the company played a vital role in the distribution of COVID-19 vaccines, ancillary supply kids, and tests.
MCK is a Zacks Rank #2 (Buy) with an overall VGM Score of an A. In addition, shares have been pushing their way to all-time highs, undoubtedly a major positive.
Let’s examine the company a little closer in order to see if MCK fits your investing style.
Share Performance
McKesson shares have been scorching-hot year-to-date, increasing by more than 30% in value and extensively outperforming both its Zacks Sector and the S&P 500.
Image Source: Zacks Investment Research
In fact, the price action has been stellar for some time; MCK shares have soared over 70% in the last year, crushing the S&P 500 and its Zacks Sector in this timeframe as well.
Image Source: Zacks Investment Research
Quarterly Performance
McKesson has consistently beaten bottom-line estimates, registering nine EPS beats out of its last ten quarterly reports. Over its last four quarters, the company has exceeded EPS estimates by an average of a double-digit 20%.
In addition, quarterly revenue results have also been rock-solid; MCK has exceeded top-line estimates in eight of its last ten quarters. McKesson generated $66.1 billion in revenue in its latest quarter, good enough for a 4% top-line beat.
Analysts have modestly upped their earnings outlook across all timeframes over the last 60 days.
Image Source: Zacks Investment Research
Dividends & Valuation
Investing for an income stream is a popular way to balance out a portfolio. Fortunately for those seeking income, MCK has that covered with its annual dividend that yields 0.6% and a payout ratio sitting sustainably at 8% of earnings.
Furthermore, the company has been dedicated to rewarding its shareholders; MCK has increased its dividend five times over the last five years and has a five-year annualized dividend growth rate of a solid 7.2%.
The chart below illustrates McKesson’s dividend yield vs. its Zacks Sector.
Image Source: Zacks Investment Research
McKesson also sports attractive valuation metrics, further displayed by its Style Score of A for Value. The company’s forward earnings multiple resides at 14.1X, nowhere near its Zacks Sector’s average, reflecting an enticing double-digit discount of 32%.
Image Source: Zacks Investment Research
Bottom Line
McKesson has been firing on all cylinders, consistently reporting top and bottom-line results above expectations. In addition, the company carries a Zacks Rank #2 (Buy) with an overall VGM Score of an A, making shares appear even more appealing.
The strong share performance, consistent dividend growth, and rising estimate revisions instill a high level of confidence in share appreciation moving forward.
If MCK doesn’t fit your investing style, another stock operating within the same sector, AMN Healthcare Services (AMN - Free Report) , might be what you’re looking for. AMN is a Zacks Rank #1 (Strong Buy) with an overall VGM Score of a B.
In addition, analysts have upped their earnings outlook across all timeframes.
Image Source: Zacks Investment Research
AMN is forecasted to register double-digit growth in earnings of nearly 30% year-over-year in FY22. Furthermore, the company has impressively registered top and bottom-line beats in nine consecutive quarters.
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This Medical Supplier Is Pushing All-Time Highs
It’s undoubtedly been a challenging year in the market year-to-date, with all of the major indexes in the red. Coming out of a once-in-a-lifetime pandemic has certainly landed us in an interesting economic environment.
Nonetheless, the market continues to roll on.
Amidst the sea of red, there are still quite a few stocks out there in the green year-to-date, such as McKesson (MCK - Free Report) .
Located in Texas, McKesson is a healthcare services and information technology company that operates through two segments – Distribution Solutions and Technology Solutions. In addition, the company played a vital role in the distribution of COVID-19 vaccines, ancillary supply kids, and tests.
MCK is a Zacks Rank #2 (Buy) with an overall VGM Score of an A. In addition, shares have been pushing their way to all-time highs, undoubtedly a major positive.
Let’s examine the company a little closer in order to see if MCK fits your investing style.
Share Performance
McKesson shares have been scorching-hot year-to-date, increasing by more than 30% in value and extensively outperforming both its Zacks Sector and the S&P 500.
Image Source: Zacks Investment Research
In fact, the price action has been stellar for some time; MCK shares have soared over 70% in the last year, crushing the S&P 500 and its Zacks Sector in this timeframe as well.
Image Source: Zacks Investment Research
Quarterly Performance
McKesson has consistently beaten bottom-line estimates, registering nine EPS beats out of its last ten quarterly reports. Over its last four quarters, the company has exceeded EPS estimates by an average of a double-digit 20%.
In addition, quarterly revenue results have also been rock-solid; MCK has exceeded top-line estimates in eight of its last ten quarters. McKesson generated $66.1 billion in revenue in its latest quarter, good enough for a 4% top-line beat.
Analysts have modestly upped their earnings outlook across all timeframes over the last 60 days.
Image Source: Zacks Investment Research
Dividends & Valuation
Investing for an income stream is a popular way to balance out a portfolio. Fortunately for those seeking income, MCK has that covered with its annual dividend that yields 0.6% and a payout ratio sitting sustainably at 8% of earnings.
Furthermore, the company has been dedicated to rewarding its shareholders; MCK has increased its dividend five times over the last five years and has a five-year annualized dividend growth rate of a solid 7.2%.
The chart below illustrates McKesson’s dividend yield vs. its Zacks Sector.
Image Source: Zacks Investment Research
McKesson also sports attractive valuation metrics, further displayed by its Style Score of A for Value. The company’s forward earnings multiple resides at 14.1X, nowhere near its Zacks Sector’s average, reflecting an enticing double-digit discount of 32%.
Image Source: Zacks Investment Research
Bottom Line
McKesson has been firing on all cylinders, consistently reporting top and bottom-line results above expectations. In addition, the company carries a Zacks Rank #2 (Buy) with an overall VGM Score of an A, making shares appear even more appealing.
The strong share performance, consistent dividend growth, and rising estimate revisions instill a high level of confidence in share appreciation moving forward.
If MCK doesn’t fit your investing style, another stock operating within the same sector, AMN Healthcare Services (AMN - Free Report) , might be what you’re looking for. AMN is a Zacks Rank #1 (Strong Buy) with an overall VGM Score of a B.
In addition, analysts have upped their earnings outlook across all timeframes.
Image Source: Zacks Investment Research
AMN is forecasted to register double-digit growth in earnings of nearly 30% year-over-year in FY22. Furthermore, the company has impressively registered top and bottom-line beats in nine consecutive quarters.