McKesson Defies Doubters, Holds Strong Despite Recent Skepticism

McKesson Corporation has defied doubts and could do it again. Despite the author's previous "Hold" rating, the company has shown resilience. The author was once bullish but lost confidence, but McKesson has continued to perform well. The author acknowledges the stock's potential for future growth.

McKesson Corporation (NYSE: MCK) has been a subject of interest for investors due to its resilience and potential for future growth. Despite previous doubts and a temporary loss of confidence, the company has shown remarkable performance, defying expectations and proving its worth.

In recent quarters, McKesson has demonstrated significant growth. For instance, in the fourth quarter of fiscal 2025, the company reported a 18.9% year-over-year increase in revenue, a 30.8% increase in operating income, and a 66.3% growth in diluted earnings per share [3]. This strong performance is not limited to a single quarter; the company has shown consistent growth across its segments, including U.S. Pharmaceutical, Prescription Technology Solutions (RxTS), Medical-Surgical Solutions, and International [2].

One of the key factors contributing to McKesson's resilience is its strategic positioning and growth potential. The company has been able to navigate challenges such as the Medical-Surgical Solutions spin-off and maintain a strong financial outlook. Additionally, McKesson's ability to secure retail deals and its operational strength have been noted by analysts, who have raised their price targets and maintained buy ratings [2].

Short interest, which measures the number of shares sold short but not yet covered, has also been a topic of interest. McKesson's short interest has risen, indicating that more shares are being shorted. However, this does not necessarily indicate a negative sentiment; it could also signal that traders are positioning themselves for potential price movements [1]. The company's short interest as a percentage of float is lower than its peers, suggesting that investors are not overwhelmingly bearish on the stock [1].

Looking ahead, McKesson's earnings call on August 6, 2025, will provide further insights into its performance and future prospects. The company's strong financial performance and strategic initiatives have led analysts to maintain bullish ratings and increase their price targets [2].

In conclusion, McKesson Corporation has shown resilience and potential for future growth, defying previous doubts and expectations. Its strong financial performance, strategic positioning, and operational strength make it a stock worth watching for investors.

References:
[1] https://www.benzinga.com/insights/short-sellers/25/07/46610525/how-do-investors-really-feel-about-mckesson
[2] https://www.cnn.com/markets/stocks/MCK
[3] https://seekingalpha.com/article/4804734-mckesson-defied-the-doubters-including-me-and-could-do-it-again