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2 Buy Signals Say Jump on MCK Now

McKesson Corp. could be setting up for a 10-point move higher


McKesson Corp. (NYSE:MCK) — This company, which provides pharmaceuticals, medical supplies and health care information technologies, earned $5.70 in fiscal year (FY) 2012 (ended in March), and analysts look for $7.30 in FY 2013. The company is in a healthy financial condition with over $3.1 billion in cash and a strong cash flow.

Of 17 analysts covering MCK, 12 have either a “strong buy” or “buy” on the stock. The median target of 18 analysts is $103.

Technically, MCK has been consolidating around its intermediate support line at about $86 following a new high at over $97 in July. Some may think that the chart looks like a head-and-shoulders top, but the pop above its 50-day moving average (blue line), the recent MACD buy signal, and the buy signal from our proprietary indicator, the Collins-Bollinger Reversal (CBR), should negate that thought.

Buy MCK at the market with a trading target of $100. Long-term investors should purchase MCK as a cornerstone stock.

Trade of the Day – McKesson Corp. (NYSE:MCK)
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Trade of the Day Chart Key

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