- Management estimates a limited tailwind from its COVID-19-related revenue but nonetheless manages to comfort investors with its sustained diluted EPS that is substantially higher than its FY2021 and FY2020.
- Despite today's unfavorable market conditions, management remains optimistic on the demand environment.
- McKesson's operating margin is temporarily under pressure, which serves as a negative catalyst in the current market.
- Nevertheless, management's efforts to deleverage, coupled with a sustained FCF projection and a substantial repurchase catalyst, makes this stock risk-worthy.
- After considerable upward momentum, McKesson remains fundamentally inexpensive and technically appealing at today’s consolidation.
For further details see:
McKesson: Still Profitable Without COVID-19 Boosts