McKesson Corp. (NYSE:MCK) — This company provides pharmaceutical supply management and information technologies. It acquired US Oncology in December.
MCK earned $5.70 in FY 2012 (ended in March) and analysts look for $7.30 in FY 2013. The company is in solid financial shape with over $3.1 billion in cash and a strong cash flow.
Of the 17 analysts covering MCK, 12 have either a “strong buy” or “buy” on the stock. S&P recently increased its target to $107 from $100.
Technically MCK has been consolidating around its intermediate-term and long-term bullish support lines at about $87 following a new high at over $95. Its stochastic flashed a buy signal last week.
McKesson was included on our Top Stocks to Buy for March list at $82, and the stock jumped to over $95 in July.
Buy MCK at the market with a trading target of $100. Long-term buyers should purchase MCK as a cornerstone biotechnology/drug stock.