Mckesson Stock Odds of Future Stock Price Finishing Over 300.0

MCK Stock  USD 538.36  0.90  0.17%   
McKesson's implied volatility is one of the determining factors in the pricing options written on McKesson. Implied volatility approximates the future value of McKesson based on the option's current value. Options with high implied volatility have higher premiums and can be used to hedge the downside of investing in McKesson over a specific time period. For example, 2024-03-28 CALL at $537.5 is a CALL option contract on McKesson's common stock with a strick price of 537.5 expiring on 2024-03-28. The contract was last traded on 2024-03-27 at 15:59:19 for $3.0 and, as of today, has 0 days remaining before the expiration. The option is currently trading at a bid price of $2.8, and an ask price of $3.4. The implied volatility as of the 28th of March is 17.47. View All McKesson options

Closest to current price McKesson long CALL Option Payoff at Expiration

McKesson's future price is the expected price of McKesson instrument. It is based on its current growth rate as well as the projected cash flow expected by the investors. This tool provides a mechanism to make assumptions about the upside potential and downside risk of McKesson performance during a given time horizon utilizing its historical volatility. Check out McKesson Backtesting, McKesson Valuation, McKesson Correlation, McKesson Hype Analysis, McKesson Volatility, McKesson History as well as McKesson Performance.
For more information on how to buy McKesson Stock please use our How to buy in McKesson Stock guide.
  
At this time, McKesson's Price To Sales Ratio is quite stable compared to the past year. Price To Free Cash Flows Ratio is expected to rise to 10.32 this year, although the value of Price Earnings To Growth Ratio will most likely fall to 0.05. Please specify McKesson's target price for which you would like McKesson odds to be computed.

McKesson Target Price Odds to finish over 300.0

The tendency of McKesson Stock price to converge on an average value over time is a known aspect in finance that investors have used since the beginning of the stock market for forecasting. However, many studies suggest that some traded equity instruments are consistently mispriced before traders' demand and supply correct the spread. One possible conclusion to this anomaly is that these stocks have additional risk, for which investors demand compensation in the form of extra returns.
Current PriceHorizonTarget PriceOdds to stay above $ 300.00  in 90 days
 538.36 90 days 300.00 
close to 99
Based on a normal probability distribution, the odds of McKesson to stay above $ 300.00  in 90 days from now is close to 99 (This McKesson probability density function shows the probability of McKesson Stock to fall within a particular range of prices over 90 days) . Probability of McKesson price to stay between $ 300.00  and its current price of $538.36 at the end of the 90-day period is more than 93.0 .
Considering the 90-day investment horizon McKesson has a beta of -0.42. This indicates as returns on benchmark increase, returns on holding McKesson are expected to decrease at a much lower rate. During the bear market, however, McKesson is likely to outperform the market. Additionally McKesson has an alpha of 0.3155, implying that it can generate a 0.32 percent excess return over NYSE Composite after adjusting for the inherited market risk (beta).
   McKesson Price Density   
       Price  

Predictive Modules for McKesson

There are currently many different techniques concerning forecasting the market as a whole, as well as predicting future values of individual securities such as McKesson. Regardless of method or technology, however, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of McKesson's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Hype
Prediction
LowEstimatedHigh
536.57537.68538.79
Details
Intrinsic
Valuation
LowRealHigh
497.85498.96592.20
Details
Naive
Forecast
LowNextHigh
538.14539.25540.36
Details
19 Analysts
Consensus
LowTargetHigh
442.56486.33539.83
Details
Please note, it is not enough to conduct a financial or market analysis of a single entity such as McKesson. Your research has to be compared to or analyzed against McKesson's peers to derive any actionable benefits. When done correctly, McKesson's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in McKesson.

McKesson Risk Indicators

For the most part, the last 10-20 years have been a very volatile time for the stock market. McKesson is not an exception. The market had few large corrections towards the McKesson's value, including both sudden drops in prices as well as massive rallies. These swings have made and broken many portfolios. An investor can limit the violent swings in their portfolio by implementing a hedging strategy designed to limit downside losses. If you hold McKesson, one way to have your portfolio be protected is to always look up for changing volatility and market elasticity of McKesson within the framework of very fundamental risk indicators.
α
Alpha over NYSE Composite
0.32
β
Beta against NYSE Composite-0.42
σ
Overall volatility
24.19
Ir
Information ratio 0.13

McKesson Alerts and Suggestions

In today's market, stock alerts give investors the competitive edge they need to time the market and increase returns. Checking the ongoing alerts of McKesson for significant developments is a great way to find new opportunities for your next move. Suggestions and notifications for McKesson can help investors quickly react to important events or material changes in technical or fundamental conditions and significant headlines that can affect investment decisions.
The company has 7.29 B in debt with debt to equity (D/E) ratio of 6.61, demonstrating that the company may be unable to create cash to meet all of its financial commitments. McKesson has a current ratio of 0.94, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. Debt can assist McKesson until it has trouble settling it off, either with new capital or with free cash flow. So, McKesson's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like McKesson sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for McKesson to invest in growth at high rates of return. When we think about McKesson's use of debt, we should always consider it together with cash and equity.
Over 89.0% of McKesson shares are owned by institutional investors
Latest headline from businesswire.com: McKesson Corporation Announces Fourth Quarter Fiscal 2024 Earnings Release Date

McKesson Price Density Drivers

Market volatility will typically increase when nervous long traders begin to feel the short-sellers pressure to drive the market lower. The future price of McKesson Stock often depends not only on the future outlook of the current and potential McKesson's investors but also on the ongoing dynamics between investors with different trading styles. Because the market risk indicators may have small false signals, it is better to identify suitable times to hedge a portfolio using different long/short signals. McKesson's indicators that are reflective of the short sentiment are summarized in the table below.
Common Stock Shares Outstanding142.2 M
Cash And Short Term Investments4.7 B

McKesson Technical Analysis

McKesson's future price can be derived by breaking down and analyzing its technical indicators over time. McKesson Stock technical analysis helps investors analyze different prices and returns patterns as well as diagnose historical swings to determine the real value of McKesson. In general, you should focus on analyzing McKesson Stock price patterns and their correlations with different microeconomic environments and drivers.

McKesson Predictive Forecast Models

McKesson's time-series forecasting models is one of many McKesson's stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models are widely used for non-stationary data. Non-stationary data are called the data whose statistical properties, e.g., the mean and standard deviation, are not constant over time, but instead, these metrics vary over time. This non-stationary McKesson's historical data is usually called time series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the stock market movement and maximize returns from investment trading.

Things to note about McKesson

Checking the ongoing alerts about McKesson for important developments is a great way to find new opportunities for your next move. Our stock alerts and notifications screener for McKesson help investors to be notified of important events, changes in technical or fundamental conditions, and significant headlines that can affect investment decisions.
The company has 7.29 B in debt with debt to equity (D/E) ratio of 6.61, demonstrating that the company may be unable to create cash to meet all of its financial commitments. McKesson has a current ratio of 0.94, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. Debt can assist McKesson until it has trouble settling it off, either with new capital or with free cash flow. So, McKesson's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like McKesson sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for McKesson to invest in growth at high rates of return. When we think about McKesson's use of debt, we should always consider it together with cash and equity.
Over 89.0% of McKesson shares are owned by institutional investors
Latest headline from businesswire.com: McKesson Corporation Announces Fourth Quarter Fiscal 2024 Earnings Release Date
When determining whether McKesson is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if McKesson Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Mckesson Stock. Highlighted below are key reports to facilitate an investment decision about Mckesson Stock:
Check out McKesson Backtesting, McKesson Valuation, McKesson Correlation, McKesson Hype Analysis, McKesson Volatility, McKesson History as well as McKesson Performance.
For more information on how to buy McKesson Stock please use our How to buy in McKesson Stock guide.
Note that the McKesson information on this page should be used as a complementary analysis to other McKesson's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.

Complementary Tools for McKesson Stock analysis

When running McKesson's price analysis, check to measure McKesson's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy McKesson is operating at the current time. Most of McKesson's value examination focuses on studying past and present price action to predict the probability of McKesson's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move McKesson's price. Additionally, you may evaluate how the addition of McKesson to your portfolios can decrease your overall portfolio volatility.
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Is McKesson's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of McKesson. If investors know McKesson will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about McKesson listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.42)
Dividend Share
2.32
Earnings Share
22.14
Revenue Per Share
2.2 K
Quarterly Revenue Growth
0.148
The market value of McKesson is measured differently than its book value, which is the value of McKesson that is recorded on the company's balance sheet. Investors also form their own opinion of McKesson's value that differs from its market value or its book value, called intrinsic value, which is McKesson's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because McKesson's market value can be influenced by many factors that don't directly affect McKesson's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between McKesson's value and its price as these two are different measures arrived at by different means. Investors typically determine if McKesson is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, McKesson's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.