McKesson Corporation : The underlying trend is in force again
Entry price | Target | Stop-loss | Potential |
---|
US$308.83 |
US$354 |
US$280 |
+14.63% |
---|
Shares in McKesson Corporation show a positive technical chart pattern over the medium term. The timing to jump back on the rising trend seems good.
Strengths● The company is one of the most undervalued, with an "enterprise value to sales" ratio at 0.18 for the 2022 fiscal year.
● Over the past four months, analysts' average price target has been revised upwards significantly.
Weaknesses● As estimated by analysts, this group is among those businesses with the lowest growth prospects.
● As a percentage of sales and without taking into account depreciation and amortization, the company has relatively low margins.
● Low profitability weakens the company.
● The company benefits from high valuations in earnings multiples.
● The company is not the most generous with respect to shareholders' compensation.
● For the last 12 months, analysts have been regularly downgrading their EPS expectations. Analysts predict worse results for the company against their predictions a year ago.
● For the last four months, earnings estimated by analysts have been revised downwards with respect to the next two years.
● The overall consensus opinion of analysts has deteriorated sharply over the past four months.
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