McKesson Stock Surges: Revenue and Earnings Growth Impress

McKesson stock outperforming Google with a 14% rise this year highlights its impressive revenue growth. With a 49% revenue increase and rising earnings, investors are optimistic about MCK's performance.

Date: 19-03-2025

AI Rating: 7

McKesson's Performance Highlights

McKesson's stock has demonstrated significant appreciation over the past five years, surging 4x, and outpacing competitors like Google. The current revenue growth stands at 49%, increasing from $231 billion to $345 billion, highlighting strong market positioning and demand.

Net income has also seen substantial growth, increasing by 40% from $2.7 billion in 2020 to $3.8 billion now. While the net margin has contracted slightly from 1.2% to 1.1%, the overall financial trajectory indicates robust demand and operational efficiency.

Moreover, McKesson's trailing P/E ratio has doubled, rising from 11x to 22x, which reflects heightened investor confidence in the company's strategic shift towards higher-margin pharmaceutical businesses and oncology services.

Share buybacks have further contributed to earnings per share growth, with a 28% reduction in total shares outstanding. This can enhance shareholder value, suggesting a strategic, investor-friendly approach.

Stocks: MCK GOOG