McKesson (MCK): Valuation Spotlight as Analyst Upgrades and Specialty Expansion Drive Fresh Investor Interest

McKesson (MCK) just expanded its specialty product lineup as Iterum Therapeutics announced that ORLYNVAH is now available for physicians through McKesson’s distribution channel. This comes alongside growing analyst optimism around the stock.

See our latest analysis for McKesson.

The upbeat momentum around McKesson has only grown this year, as a wave of analyst upgrades and new specialty distribution deals like ORLYNVAH have coincided with a rally in the stock. After surging nearly 31% over the last 90 days, McKesson’s 1-year total shareholder return is an impressive 43%. Its long-term gains are even more striking, with shares up more than 400% over five years. That kind of performance demonstrates the market’s enthusiasm for the company’s expanding reach and resilience.

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With shares at all-time highs and analyst confidence exceptionally strong, investors are left wondering if McKesson is still undervalued, presenting a buying opportunity, or if the market has already priced in its impressive future growth.

Most Popular Narrative: 4.9% Undervalued

With McKesson’s narrative fair value at $934.71 and shares closing at $889.28, the market is still trailing the narrative’s outlook. This gap reflects a balance of optimism and realism in future projections, making the narrative’s assumptions worth a closer look.

Expansion into specialty pharmaceuticals and value-added services strengthens revenue quality, customer relationships, and recurring income streams. Operational efficiency gains driven by automation and digitization support margin improvement and reinforce market leadership.

Read the complete narrative.

Want to know the bold math behind this near double-digit undervaluation? The secret is in a multi-year profit boom, rising margins, and a premium earnings multiple reserved for top players. Find out what’s fueling such high conviction, and if the numbers justify today’s hot price.

Result: Fair Value of $934.71 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, regulatory pressure on drug pricing or a slowdown in healthcare demand could quickly put McKesson’s current valuation and growth story to the test.

Find out about the key risks to this McKesson narrative.

Build Your Own McKesson Narrative

If you have your own perspective or want to dive deeper into the numbers, you can craft a personalized take on McKesson in just a few minutes. Do it your way

A great starting point for your McKesson research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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