McKesson Stock Climbs 0.83 on $600M Volume Boosted by Tech Push and Analyst Buy Ratings

McKesson (MCK) rose 0.83% on August 29, 2025, with a trading volume of $600 million, ranking 144th in market activity. Analysts highlighted the stock’s moderate buy rating, supported by 9 buy and 3 hold recommendations, while its price-to-earnings ratio of 27.29 remains below the sector average of 30.83. Institutional ownership stands at 85.07%, reflecting strong institutional confidence despite a recent 0.53% increase in short interest.

Recent developments include McKesson’s expansion in healthcare IT, driven by growing demand for cost-cutting measures, cloud-based electronic medical records, and AI integration. The company’s focus on telehealth and data security aligns with industry trends, though challenges in system integration persist. Additionally, McKesson’s partnership with Pharmacy Profiles to enhance credential verification services for its Health Mart pharmacies underscores its commitment to operational efficiency.

Dividend sustainability remains a key draw, with a payout ratio of 11.32% and a 17-year growth streak. However, insider trading activity shows net sales of $48 million over the past three months, potentially signaling cautious sentiment among executives. Despite this, the stock’s 11.81% projected earnings growth for the next year suggests long-term value, though its PEG ratio of 1.35 indicates potential overvaluation relative to growth prospects.

McKesson’s stock has gained attention amid broader healthcare sector dynamics, including competitive moves by peers like Cardinal Health. However, its standalone performance is underpinned by technological investments and market position in pharmacy services. Analysts remain divided on near-term catalysts but acknowledge the stock’s resilience in a consolidating industry.

Backtest results: Over the past five years, McKesson’s stock delivered a 366% return, outperforming the S&P 500. This performance aligns with its consistent earnings growth and strategic acquisitions in healthcare IT and pharmacy services.