10 Best Pharma Stocks To Buy Right Now

5. McKesson Corporation (NYSE:MCK)

Number of Hedge Fund Holders: 70

McKesson Corporation (NYSE:MCK) is a leading global healthcare company focused on enhancing care across all settings. Operating through four main segments—U.S. Pharmaceutical, Prescription Technology Solutions, Medical-Surgical Solutions, and International—the company delivers approximately 41,000 packages daily, accounting for one-third of the U.S. pharmaceutical volume.

In fiscal Q1 2025, McKesson Corporation (NYSE:MCK) reported strong results with $79.3 billion in revenue, a 6% year-over-year increase. Adjusted earnings per diluted share rose by 8% to $7.88, prompting an upward revision in its full-year guidance. The U.S. Pharmaceutical segment, particularly its Oncology offerings, showed robust growth.

On October 2, Barclays reaffirmed its Equalweight rating and a $76 price target for MCK, highlighting the company’s strong organic sales growth and improved gross margins. McKesson Corporation (NYSE:MCK) also raised its quarterly dividend by 15% and approved an additional $4 billion for share buybacks. The company’s recent acquisitions, including Florida Cancer Specialists and a majority interest in Core Ventures for $2.49 billion, aims at bolstering oncology spending by an estimated $3.6 billion.

ClearBridge Large Cap Value Strategy stated the following regarding McKesson Corporation (NYSE:MCK) in its Q3 2024 investor letter:

“In a similar case of post-COVID market normalization, drug distributor McKesson Corporation (NYSE:MCK) lowered profit guidance for its medical-surgical business twice during the period, most likely due to continued post-COVID headwinds as primary care sites are consuming less of its equipment, while its prescription technology solution segment is tied to volumes of certain high-value specialty drugs. We still believe McKesson’s core pharma distribution business is very healthy, however, and it is ramping up its Optum contract in the second half of the year, while its most recent oncology practices acquisition should be accretive over the long term, enabling McKesson to continue delivering low-double-digit earnings growth without much economic sensitivity.”