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If You Invested $1000 in McKesson a Decade Ago, This is How Much It'd Be Worth Now
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For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in McKesson (MCK - Free Report) ten years ago? It may not have been easy to hold on to MCK for all that time, but if you did, how much would your investment be worth today?
McKesson's Business In-Depth
With that in mind, let's take a look at McKesson's main business drivers.
San Francisco, CA-based McKesson Corporation is a health care services and information technology company. McKesson operates through two segments:
The Distribution Solutions segment distributes branded and generic pharmaceutical drugs along with other healthcare-related products on a global basis worldwide. The segment also provides practice management, technology, clinical support and business solutions to community-based oncology and other specialty practices. In addition, the segment provides specialty pharmaceutical solutions for pharmaceutical manufacturers including offering multiple distribution channels and study access to oncology physicians. The segment also provides medical-surgical supply distribution, equipment, logistics and other services to healthcare providers within the U.S.
The Technology Solutions segment provides enterprise-wide clinical, patient care, financial, supply chain, and strategic management software solutions.
However, in the fourth quarter of fiscal 2021, per segment realignment, McKesson reported revenues through four segments: U.S. Pharmaceutical and Specialty Solutions, Internation, Medical-Surgical Solutions and Prescription Technology Solutions.
Notably, McKesson’s role in the COVID-19 response was reflected in the collaboration with the U.S. government's COVID-19 vaccine distribution effort, wherein McKesson was selected as the centralized distributor of refrigerated and frozen COVID-19 vaccines and the ancillary kits used to administer those vaccines.
FY22 at a Glance
Revenues in fiscal 2022 grossed $263.97 billion, up 11% from the year-ago period. U.S. Pharmaceutical and Specialty Solutions (80% of net revenues), International (13.7%), Medical-Surgical Solutions (4.3%) and Prescription Technology Solutions (1.5%).
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For McKesson, if you bought shares a decade ago, you're likely feeling really good about your investment today.
A $1000 investment made in July 2012 would be worth $3,659.98, or a gain of 266%, as of July 27, 2022, according to our calculations. This return excludes dividends but includes price appreciation.
Compare this to the S&P 500's rally of 188.31% and gold's return of 1.59% over the same time frame.
Analysts are anticipating more upside for MCK.
Over the past six months, McKesson has outperformed its industry. McKesson exited the fiscal fourth quarter on a mixed note, wherein earnings missed the Zacks Consensus Estimate, but revenues beat the same. Strong fiscal fourth-quarter show by three of the four segments is encouraging. A strong earnings outlook for fiscal 2023 instills optimism. Double-digit adjusted operating profit growth across all segments is encouraging. A strong position in the Distribution market continues to favor the stock. The company played a crucial role in the COVID-19 response efforts in the United States and abroad via the distribution of COVID-19 vaccines, ancillary supply kits, and COVID-19 tests Yet, both gross and operating margin contractions are woes. Price fluctuation of generic pharmaceuticals and stiff competition in the MedTech space remain headwinds.
Over the past four weeks, shares have rallied 5.01%, and there have been 2 higher earnings estimate revisions in the past two months for fiscal 2022 compared to none lower. The consensus estimate has moved up as well.
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If You Invested $1000 in McKesson a Decade Ago, This is How Much It'd Be Worth Now
For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in McKesson (MCK - Free Report) ten years ago? It may not have been easy to hold on to MCK for all that time, but if you did, how much would your investment be worth today?
McKesson's Business In-Depth
With that in mind, let's take a look at McKesson's main business drivers.
San Francisco, CA-based McKesson Corporation is a health care services and information technology company. McKesson operates through two segments:
The Distribution Solutions segment distributes branded and generic pharmaceutical drugs along with other healthcare-related products on a global basis worldwide. The segment also provides practice management, technology, clinical support and business solutions to community-based oncology and other specialty practices. In addition, the segment provides specialty pharmaceutical solutions for pharmaceutical manufacturers including offering multiple distribution channels and study access to oncology physicians. The segment also provides medical-surgical supply distribution, equipment, logistics and other services to healthcare providers within the U.S.
The Technology Solutions segment provides enterprise-wide clinical, patient care, financial, supply chain, and strategic management software solutions.
However, in the fourth quarter of fiscal 2021, per segment realignment, McKesson reported revenues through four segments: U.S. Pharmaceutical and Specialty Solutions, Internation, Medical-Surgical Solutions and Prescription Technology Solutions.
Notably, McKesson’s role in the COVID-19 response was reflected in the collaboration with the U.S. government's COVID-19 vaccine distribution effort, wherein McKesson was selected as the centralized distributor of refrigerated and frozen COVID-19 vaccines and the ancillary kits used to administer those vaccines.
FY22 at a Glance
Revenues in fiscal 2022 grossed $263.97 billion, up 11% from the year-ago period. U.S. Pharmaceutical and Specialty Solutions (80% of net revenues), International (13.7%), Medical-Surgical Solutions (4.3%) and Prescription Technology Solutions (1.5%).
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For McKesson, if you bought shares a decade ago, you're likely feeling really good about your investment today.
A $1000 investment made in July 2012 would be worth $3,659.98, or a gain of 266%, as of July 27, 2022, according to our calculations. This return excludes dividends but includes price appreciation.
Compare this to the S&P 500's rally of 188.31% and gold's return of 1.59% over the same time frame.
Analysts are anticipating more upside for MCK.
Over the past six months, McKesson has outperformed its industry. McKesson exited the fiscal fourth quarter on a mixed note, wherein earnings missed the Zacks Consensus Estimate, but revenues beat the same. Strong fiscal fourth-quarter show by three of the four segments is encouraging. A strong earnings outlook for fiscal 2023 instills optimism. Double-digit adjusted operating profit growth across all segments is encouraging. A strong position in the Distribution market continues to favor the stock. The company played a crucial role in the COVID-19 response efforts in the United States and abroad via the distribution of COVID-19 vaccines, ancillary supply kits, and COVID-19 tests Yet, both gross and operating margin contractions are woes. Price fluctuation of generic pharmaceuticals and stiff competition in the MedTech space remain headwinds.
Over the past four weeks, shares have rallied 5.01%, and there have been 2 higher earnings estimate revisions in the past two months for fiscal 2022 compared to none lower. The consensus estimate has moved up as well.