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.