McKesson Shares Soar 1.87% on Earnings Upgrade

McKesson Corporation (MCK) shares surged to a record high today, with an intraday gain of 1.87%.

The strategy of buying MCK shares after they reached a recent high and holding for 1 week showed poor performance over the past 5 years. The annualized return was -1.2%, significantly underperforming the market. This indicates that relying solely on recent highs as a buying trigger and holding for a short duration is not a reliable strategy for MCK.

McKesson's strategic shift towards optimizing operations and investing in high-growth markets has significantly impacted its fiscal 2026 earnings per share (EPS) upgrade. This strategic move reflects the company's commitment to operational excellence and its focus on areas with high growth potential, which has positively influenced investor sentiment and the stock price.

Analysts have also shown confidence in McKesson's future performance. UBS Group recently increased its price target for McKesson shares from $708.00 to $805.00, maintaining a "buy" rating. Similarly, Morgan Stanley raised its price target for McKesson stock to $770.00 from $745.00, while keeping an Overweight rating. These adjustments indicate a positive outlook on the company's prospects and contribute to the upward momentum in its stock price.

McKesson's financial performance has been robust, with a 16% increase in full-year consolidated revenues, reaching a record $359 billion. This strong financial performance underscores the company's ability to generate revenue and maintain profitability, further bolstering investor confidence and driving the stock price higher.