Irving, Texas-based McKesson Corporation (MCK) is a healthcare services company and one of the biggest pharmaceutical distributors in North America. Valued at a market cap of $85 billion, it provides digital solutions to improve medication access and affordability, along with medical-surgical supplies and specialty healthcare services, particularly in oncology. 

This healthcare giant has outpaced the broader market over the past 52 weeks. Shares of MCK have surged 24.1% over this time frame, while the broader S&P 500 Index ($SPX) has gained 15.2%. Moreover, on a YTD basis, the stock is up 19.9%, compared to SPX’s 10.2% rise.

Zooming in further, MCK’s outperformance becomes even more evident when compared to the SPDR S&P Health Care Services ETF’s (XHS) marginal uptick over the past 52 weeks and 9% return on a YTD basis. 

On Aug. 6, MCK delivered better-than-expected Q1 results, yet its shares plunged 5.8% in the following trading session. The company’s revenue advanced 23.4% year-over-year to $97.8 billion, exceeding consensus estimates by 1.8%. Growth in its U.S. Pharmaceutical segment, driven by increased prescription volumes from retail national account customers and a rise in the distribution of oncology and specialty products, including contributions from acquisitions, supported its top-line performance. Moreover, on the earnings front, its adjusted EPS of $8.26 advanced 4.8% from the year-ago quarter and came in marginally above the analyst expectations. 

For the current fiscal year, ending in March 2026, analysts expect MCK’s EPS to grow 12.6% year over year to $37.22. The company’s earnings surprise history is mixed. It exceeded the consensus estimates in three of the last four quarters, while missing on another occasion.

Among the 17 analysts covering the stock, the consensus rating is a "Strong Buy” which is based on 12 “Strong Buy,” and five “Hold” ratings. 

The configuration has been consistent over the past three months. 

On Aug. 13, Wells Fargo & Company (WFC) analyst Stephen Baxter maintained an "Equal Weight" rating on MCK and raised its price target to $772, implying a 12.9% potential upside from the current levels.

The mean price target of $795.67 represents a 16.4% premium from MCK’s current price levels, while the Street-high price target of $830 suggests an ambitious upside potential of 21.4%.