McKesson offers its investors a sweet deal

Article Excerpt

Drug wholesaler McKesson fell from its high of $241 in May 2015 to $108 in December 2018. That’s partly due to its role in the opioid crisis. However, the company has now settled many of those lawsuits, reducing risk for investors. It’s also improving the profitability of its main businesses, and its plan to let investors acquire shares in its Change Healthcare subsidiary should further boost your returns. MCKESSON CORP. $168 is a buy for spinoff gains. The company (New York symbol MCK; Consumer sector; Shares outstanding: 177.1 million; Market cap: $29.8 billion; Dividend yield 1.0%; Takeover Target Rating: Medium; www.mckesson.com) is the largest wholesale drug distributor in the U.S. and Canada. It also operates drugstores in Europe. Revenue gained 19.7%, from $179.0 billion in 2015 to $214.3 billion in 2019 (McKesson’s fiscal year ends March 31). Those gains are largely due to acquisitions. Earnings rose 7.6%, from $2.61 billion in 2015 to $2.81 billion in 2016. Due to fewer shares outstanding, earnings per share gained…

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