Large-Cap Stocks: GE HealthCare to Sell, Carvana and McKesson to Watch

GE HealthCare (GEHC) is a large-cap stock to sell due to sluggish demand and flat earnings per share. Carvana (CVNA) is a large-cap stock to watch with growing retail units sold and highly profitable incremental sales. McKesson (MCK) is another large-cap stock to watch, with a long history and a diversified healthcare services business.

GE HealthCare Technologies Inc. (GEHC), a leading designer of medical imaging and patient-monitoring products, is facing challenges that may warrant a sell signal for investors. The company, valued at $34.4 billion by market cap, is set to release its second-quarter results on July 30. Analysts expect a profit of $0.91 per share, down 9% from the $1 per share reported in the year-ago quarter. Despite this expected decline, GEHC has a history of surpassing earnings estimates, having done so in each of the past four quarters [1].

GEHC's stock has observed a 1.8% dip over the past 52 weeks, underperforming the Health Care Select Sector SPDR Fund (XLV), which has declined by 6.5%, and the S&P 500 Index ($SPX), which has seen a 12.3% drop [1]. The company reported a strong start to the year, with its stock prices gaining 3.3% after the release of its Q1 results on April 30. Organic revenues grew by 2.7% year-over-year to $4.8 billion, driven by strengthening sales in the U.S. [1].

For the full fiscal 2025, analysts expect GEHC to deliver an EPS of $4.02, down 10.5% from $4.49 reported in the previous year. In fiscal 2026, its earnings are expected to rebound by 12.2% year-over-year to $4.51 per share [1]. Despite these projections, the company's stock holds a consensus "Strong Buy" rating, with 13 analysts rating it as a "Strong Buy," one as a "Moderate Buy," and five as a "Hold." The mean price target of $87.16 suggests a 15.4% upside potential from current price levels [1].

In contrast, Carvana (CVNA) and McKesson (MCK) are large-cap stocks to watch. Carvana has seen growing retail units sold and highly profitable incremental sales, making it an attractive stock for investors. McKesson, with a long history and a diversified healthcare services business, also presents opportunities for growth [2].

References:
[1] https://finance.yahoo.com/news/know-ahead-ge-healthcare-technologies-071630284.html
[2] https://www.tradingview.com/news/gurufocus:65c90b6f2094b:0-healthcare-services-group-slides-on-genesis-bankruptcy/