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If You Invested $1000 in McKesson 10 Years Ago, This Is How Much You'd Have Now
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For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in McKesson (MCK - Free Report) ten years ago? It may not have been easy to hold on to MCK for all that time, but if you did, how much would your investment be worth today?
McKesson's Business In-Depth
With that in mind, let's take a look at McKesson's main business drivers.
San Francisco, CA-based McKesson Corporation is a health care services and information technology company. McKesson operates through two segments:
The Distribution Solutions segment distributes branded and generic pharmaceutical drugs along with other healthcare-related products on a global basis worldwide. The segment also provides practice management, technology, clinical support and business solutions to community-based oncology and other specialty practices. In addition, the segment provides specialty pharmaceutical solutions for pharmaceutical manufacturers including offering multiple distribution channels and study access to oncology physicians. The segment also provides medical-surgical supply distribution, equipment, logistics and other services to healthcare providers within the U.S.
The Technology Solutions segment provides enterprise-wide clinical, patient care, financial, supply chain, and strategic management software solutions.
However, in the fourth quarter of fiscal 2021, per segment realignment, McKesson reported revenues through four segments: U.S. Pharmaceutical and Specialty Solutions, Internation, Medical-Surgical Solutions and Prescription Technology Solutions.
Notably, McKesson’s role in the COVID-19 response was reflected in the collaboration with the U.S. government's COVID-19 vaccine distribution effort, wherein McKesson was selected as the centralized distributor of refrigerated and frozen COVID-19 vaccines and the ancillary kits used to administer those vaccines.
FY21 at a Glance
Revenues in fiscal 2021 grossed $238.23 billion, up 3.1% from the year-ago period. U.S. Pharmaceutical and Specialty Solutions (80% of net revenues), International (15%), Medical-Surgical Solutions (4%) and Prescription Technology Solutions (1%).
Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in McKesson a decade ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in February 2012 would be worth $3,362.80, or a 236.28% gain, as of February 11, 2022. Investors should keep in mind that this return excludes dividends but includes price appreciation.
Compare this to the S&P 500's rally of 235.46% and gold's return of 1.51% over the same time frame.
Analysts are forecasting more upside for MCK too.
McKesson exited the fiscal third quarter on a strong note, wherein both earnings and revenues beat the Zacks Consensus Estimate. Strong fiscal third-quarter show by all the segments remains positive. Raised earnings outlook for fiscal 2022 instills optimism. Double-digit adjusted operating profit growth across all segments is encouraging. Strong position in the Distribution market continues to favor the stock. The company played a crucial role in the COVID-19 response efforts in the United States and abroad via distribution of COVID-19 vaccines, ancillary supply kits and COVID-19 tests. Over the past year, McKesson has outperformed its industry. A strong solvency is an added plus. However, contraction in gross margin is a woe. Price fluctuation of generic pharmaceuticals and stiff competition in the MedTech space remain headwinds.
Over the past four weeks, shares have rallied 7.37%, and there have been 7 higher earnings estimate revisions in the past two months for fiscal 2022 compared to none lower. The consensus estimate has moved up as well.
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If You Invested $1000 in McKesson 10 Years Ago, This Is How Much You'd Have Now
For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in McKesson (MCK - Free Report) ten years ago? It may not have been easy to hold on to MCK for all that time, but if you did, how much would your investment be worth today?
McKesson's Business In-Depth
With that in mind, let's take a look at McKesson's main business drivers.
San Francisco, CA-based McKesson Corporation is a health care services and information technology company. McKesson operates through two segments:
The Distribution Solutions segment distributes branded and generic pharmaceutical drugs along with other healthcare-related products on a global basis worldwide. The segment also provides practice management, technology, clinical support and business solutions to community-based oncology and other specialty practices. In addition, the segment provides specialty pharmaceutical solutions for pharmaceutical manufacturers including offering multiple distribution channels and study access to oncology physicians. The segment also provides medical-surgical supply distribution, equipment, logistics and other services to healthcare providers within the U.S.
The Technology Solutions segment provides enterprise-wide clinical, patient care, financial, supply chain, and strategic management software solutions.
However, in the fourth quarter of fiscal 2021, per segment realignment, McKesson reported revenues through four segments: U.S. Pharmaceutical and Specialty Solutions, Internation, Medical-Surgical Solutions and Prescription Technology Solutions.
Notably, McKesson’s role in the COVID-19 response was reflected in the collaboration with the U.S. government's COVID-19 vaccine distribution effort, wherein McKesson was selected as the centralized distributor of refrigerated and frozen COVID-19 vaccines and the ancillary kits used to administer those vaccines.
FY21 at a Glance
Revenues in fiscal 2021 grossed $238.23 billion, up 3.1% from the year-ago period. U.S. Pharmaceutical and Specialty Solutions (80% of net revenues), International (15%), Medical-Surgical Solutions (4%) and Prescription Technology Solutions (1%).
Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in McKesson a decade ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in February 2012 would be worth $3,362.80, or a 236.28% gain, as of February 11, 2022. Investors should keep in mind that this return excludes dividends but includes price appreciation.
Compare this to the S&P 500's rally of 235.46% and gold's return of 1.51% over the same time frame.
Analysts are forecasting more upside for MCK too.
McKesson exited the fiscal third quarter on a strong note, wherein both earnings and revenues beat the Zacks Consensus Estimate. Strong fiscal third-quarter show by all the segments remains positive. Raised earnings outlook for fiscal 2022 instills optimism. Double-digit adjusted operating profit growth across all segments is encouraging. Strong position in the Distribution market continues to favor the stock. The company played a crucial role in the COVID-19 response efforts in the United States and abroad via distribution of COVID-19 vaccines, ancillary supply kits and COVID-19 tests. Over the past year, McKesson has outperformed its industry. A strong solvency is an added plus. However, contraction in gross margin is a woe. Price fluctuation of generic pharmaceuticals and stiff competition in the MedTech space remain headwinds.
Over the past four weeks, shares have rallied 7.37%, and there have been 7 higher earnings estimate revisions in the past two months for fiscal 2022 compared to none lower. The consensus estimate has moved up as well.