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Bull of the Day

Zacks Equity Research

McKesson Corp. (MCK)


Trades from $3

McKesson Corp.'s (MCK) fourth quarter fiscal 2011 earnings of $1.66 per share outpaced the Zacks Consensus Estimate and the year-ago earnings. Revenues climbed 8% to $28.9 billion. McKesson's fiscal 2012 guidance was also above expectations. The company expects fiscal 2012 earnings in the range of $5.99 and $6.19 per share.

Following the earnings announcement, we raised our 2012 earnings estimate by 50 cents to $6.10. Based on the company's performance and guidance, we are upgrading McKesson to Outperform. We believe that the company will continue performing well.

Factors like an aging population, increased use of generics and growing demand for specialty pharmaceutical products should help drive growth in the Distribution Solutions segment. We currently have a target price of $100.00 on McKesson.

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