3 Reasons Why McKesson Could Be An Attractive Play During A Downturn

Summary

• We expect MCK to outperform the broader market in the near term, as the demand for its products and services is relatively independent of consumer sentiment.
• Most of the firm's revenues are generated by the U.S. pharmaceutical segment, reducing the potential foreign exchange headwinds for the company.
• Safe, sustainable and growing dividend payments combined with share repurchase programs could make the firm attractive for dividend and dividend growth investors.
• We currently rate MCK as "buy".

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McKesson (NYSE:MCK) provides healthcare services in the United States and internationally. It operates through four segments: U.S. Pharmaceutical, International, Medical-Surgical Solutions, and Prescription Technology Solutions (RxTS).

MCK's stock has performed exceptionally well and has gotten the attention of many

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Past performance is not an indicator of future performance. This post is illustrative and educational and is not a specific offer of products or services or financial advice. Information in this article is not an offer to buy or sell, or a solicitation of any offer to buy or sell the securities mentioned herein. Information presented is believed to be factual and up-to-date, but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. Expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. This article has been co-authored by Mark Lakos.