What changed
$MCK — BUY 📊 | 6 MONTHS THESIS
🎯 Q1 2026 | Rev $96.3B | EPS $11.69 vs $11.57 🟢
💡 Consensus expects flat earnings from drug pricing headwinds; our variant view is that diversified sourcing and cost discipline sustain mid-single-digit EPS growth, making the current P/E discount unjustified.
📉 Reward/risk: 2.5:1
🏢 Business Quality: 7/10 - Leading pharmaceutical distributor with scale and essential role, but thin margins, low growth, and regulatory exposure limit upside.
📊 Valuation: cheap - P/E of 19.6x versus historical median 20.1x (range 19.7–20.5) and peer average ~20x. FCF yield estimated at ~5% supports floor.
🔮 Catalyst: Post-earnings consensus estimate upgrades and price-target increases.
💰 Entry: $750, stop $734, target $790
📊 Our read: BUY. Full analysis →
https://stockduty.xyz/s/MCK0621