GLP-1 trade? McKesson is your stock, this investor says
Goodreid Investment Counsel president and CEO Gordon Reid told BNN Bloomberg’s Market Call on April 23 that McKesson (McKesson Stock Quote, Chart, News, Analysts, Financials NYSE:MCK) remains an attractive, stable healthcare name with long-term growth tied to pharmaceutical distribution demand.
Reid noted that McKesson is the world’s largest pharmaceutical distributor, handling more than one billion prescriptions a year, and should benefit from aging demographics and rising drug volumes.
“It’s incredibly stable,” Reid said. “And GLP-1 drugs are a huge growth area for McKesson.”
He said the company also offers consistency, quality and a reasonable valuation.
“It’s predictable. We love that,” Reid said. “Trading at an undemanding multiple and a good quality company.”
McKesson shares have gained 19.31% over the past 12 months and 342.2% over five years. Of the analysts covering the stock, 16 rate it “Buy,” two “Hold” and none “Sell,” with a consensus price target of US$1,002.94.
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Rod Weatherbie
Writer
Rod Weatherbie is a journalist based in Prince Edward Island. Since 2004, he has written extensively about the Canadian property and casualty insurance landscape. He was also a founder and contributing editor for a Toronto-based arts website and a PEI-based food magazine. His fiction and poetry have been featured in The Fiddlehead, The Antigonish Review, and Juniper.