Mckesson Stock Price Prediction
| MCK Stock | USD 518.81 7.11 1.35% |
Oversold Vs Overbought
59
Oversold | Overbought |
McKesson stock price prediction is an act of determining the future value of McKesson shares using few different conventional methods such as EPS estimation, analyst consensus, or fundamental intrinsic valuation. The successful prediction of McKesson's future price could yield a significant profit. Please, note that this module is not intended to be used solely to calculate an intrinsic value of McKesson and does not consider all of the tangible or intangible factors available from McKesson's fundamental data. We analyze noise-free headlines and recent hype associated with McKesson, which may create opportunities for some arbitrage if properly timed.
Below are the key fundamental drivers impacting McKesson's stock price prediction:Quarterly Earnings Growth (0.42) | EPS Estimate Next Quarter 6.77 | EPS Estimate Current Year 27.6 | EPS Estimate Next Year 31.01 | Wall Street Target Price 564.56 |
It is a matter of debate whether stock price prediction based on information in financial news can generate a strong buy or sell signal. We use our internally-built news screening methodology to estimate the value of McKesson based on different types of headlines from major news networks to social media. The McKesson stock price prediction module provides an analysis of price elasticity to changes in media outlook on McKesson over a specific investment horizon. Using McKesson hype-based prediction, you can estimate the value of McKesson from the perspective of McKesson response to recently generated media hype and the effects of current headlines on its competitors. We also analyze overall investor sentiment towards McKesson using McKesson's stock options and short interest. It helps to benchmark the overall future attitude of investors towards McKesson using crowd psychology based on the activity and movement of McKesson's stock price.
McKesson Short Interest
A significant increase or decrease in McKesson's short interest from the previous month could be a good indicator of investor sentiment towards McKesson. Short interest can provide insight into the potential direction of McKesson stock and how bullish or bearish investors feel about the market overall. An investor who is long McKesson may also wish to track short interest. As short interest increases, investors should be becoming more worried about McKesson and may potentially protect profits, hedge McKesson with its derivative instruments, or be ready for some potential downside.
200 Day MA 464.8361 | Short Percent 0.0111 | Short Ratio 2.11 | Shares Short Prior Month 1.5 M | 50 Day MA 523.1214 |
McKesson Hype to Price Pattern
Investor biases related to McKesson's public news can be used to forecast risks associated with an investment in McKesson. The trend in average sentiment can be used to explain how an investor holding McKesson can time the market purely based on public headlines and social activities around McKesson. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Some investors profit by finding stocks that are overvalued or undervalued based on market sentiment. The correlation of McKesson's market sentiment to its price can help taders to make decisions based on the overall investors consensus about McKesson.
McKesson Implied Volatility | 36.48 |
McKesson's implied volatility exposes the market's sentiment of McKesson stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if McKesson's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that McKesson stock will not fluctuate a lot when McKesson's options are near their expiration.
This module is based on analyzing investor sentiment around taking a position in McKesson. This speculative approach is based exclusively on the idea that markets are driven by emotions such as investor fear and greed. The fear of missing out, i.e., FOMO, can cause potential investors in McKesson to buy its stock at a price that has no basis in reality. In that case, they are not buying McKesson because the equity is a good investment, but because they need to do something to avoid the feeling of missing out. On the other hand, investors will often sell stocks at prices well below their value during bear markets because they need to stop feeling the pain of losing money.
McKesson after-hype prediction price | USD 517.95 |
There is no one specific way to measure market sentiment using hype analysis or a similar predictive technique. This prediction method should be used in combination with more fundamental and traditional techniques such as stock price forecasting, technical analysis, analysts consensus, earnings estimates, and various momentum models.
Prediction based on Rule 16 of the current McKesson contract
Based on the Rule 16, the options market is currently suggesting that McKesson will have an average daily up or down price movement of about 2.28% per day over the life of the 2024-04-19 option contract. With McKesson trading at USD 518.81, that is roughly USD 11.83 . If you think that the market is fully incorporating McKesson's daily price movement you should consider acquiring McKesson options at the current volatility level of 36.48%. But if you have an opposite viewpoint you should avoid it and even consider selling them.
McKesson |
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.
McKesson After-Hype Price Prediction Density Analysis
As far as predicting the price of McKesson at your current risk attitude, this probability distribution graph shows the chance that the prediction will fall between or within a specific range. We use this chart to confirm that your returns on investing in McKesson or, for that matter, your successful expectations of its future price, cannot be replicated consistently. Please note, a large amount of money has been lost over the years by many investors who confused the symmetrical distributions of Stock prices, such as prices of McKesson, with the unreliable approximations that try to describe financial returns.
Next price density |
| Expected price to next headline |
McKesson Estimiated After-Hype Price Volatility
In the context of predicting McKesson's stock value on the day after the next significant headline, we show statistically significant boundaries of downside and upside scenarios based on McKesson's historical news coverage. McKesson's after-hype downside and upside margins for the prediction period are 516.88 and 519.02, respectively. We have considered McKesson's daily market price in relation to the headlines to evaluate this method's predictive performance. Remember, however, there is no scientific proof or empirical evidence that news-based prediction models outperform traditional linear, nonlinear models or artificial intelligence models to provide accurate predictions consistently.
Current Value
McKesson is very steady at this time. Analysis and calculation of next after-hype price of McKesson is based on 3 months time horizon.
McKesson Stock Price Prediction Analysis
Have you ever been surprised when a price of a Company such as McKesson is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading McKesson backward and forwards among themselves. Have you ever observed a lot of a particular company's price movement is driven by press releases or news about the company that has nothing to do with actual earnings? Usually, hype to individual companies acts as price momentum. If not enough favorable publicity is forthcoming, the Stock price eventually runs out of speed. So, the rule of thumb here is that as long as this news hype has nothing to do with immediate earnings, you should pay more attention to it. If you see this tendency with McKesson, there might be something going there, and it might present an excellent short sale opportunity.
| Expected Return | Period Volatility | Hype Elasticity | Related Elasticity | News Density | Related Density | Expected Hype |
0.11 | 1.07 | 0.86 | 0.02 | 12 Events / Month | 6 Events / Month | In about 12 days |
| Latest traded price | Expected after-news price | Potential return on next major news | Average after-hype volatility | ||
518.81 | 517.95 | 0.17 |
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McKesson Hype Timeline
On the 19th of April McKesson is traded for 518.81. The entity has historical hype elasticity of -0.86, and average elasticity to hype of competition of -0.02. McKesson is forecasted to decline in value after the next headline, with the price expected to drop to 517.95. The average volatility of media hype impact on the company price is about 13.61%. The price depreciation on the next news is expected to be -0.17%, whereas the daily expected return is now at 0.11%. The volatility of related hype on McKesson is about 538.36%, with the expected price after the next announcement by competition of 518.79. About 88.0% of the company shares are owned by institutional investors. The company recorded earning per share (EPS) of 22.14. McKesson last dividend was issued on the 29th of February 2024. The entity had 2:1 split on the 5th of January 1998. Considering the 90-day investment horizon the next forecasted press release will be in about 12 days. Check out McKesson Basic Forecasting Models to cross-verify your projections.McKesson Related Hype Analysis
Having access to credible news sources related to McKesson's direct competition is more important than ever and may enhance your ability to predict McKesson's future price movements. Getting to know how McKesson's peers react to changing market sentiment, related social signals, and mainstream news is a great way to find investing opportunities and time the market. The summary table below summarizes the essential lagging indicators that can help you analyze how McKesson may potentially react to the hype associated with one of its peers.
| HypeElasticity | NewsDensity | SemiDeviation | InformationRatio | PotentialUpside | ValueAt Risk | MaximumDrawdown | |||
| CERT | Certara | (0.53) | 11 per month | 2.26 | (0.01) | 3.83 | (4.31) | 14.25 | |
| HSTM | HealthStream | 0.29 | 9 per month | 0.00 | (0.20) | 1.56 | (1.97) | 4.67 | |
| HQY | HealthEquity | 0.20 | 12 per month | 1.16 | 0.05 | 2.43 | (2.11) | 6.23 | |
| EVH | Evolent Health | (0.05) | 10 per month | 0.00 | (0.05) | 2.38 | (2.62) | 19.46 | |
| STRM | Streamline Health Solutions | 0.02 | 5 per month | 5.16 | (0.01) | 16.28 | (8.33) | 44.75 | |
| DH | Definitive Healthcare Corp | (0.06) | 7 per month | 0.00 | (0.13) | 5.45 | (5.78) | 13.17 | |
| SLP | Simulations Plus | (1.57) | 7 per month | 2.55 | 0.06 | 5.10 | (4.17) | 29.29 | |
| AGTI | Agiliti | 0.11 | 10 per month | 1.39 | 0.14 | 3.89 | (3.49) | 29.56 |
McKesson Additional Predictive Modules
Most predictive techniques to examine McKesson price help traders to determine how to time the market. We provide a combination of tools to recognize potential entry and exit points for McKesson using various technical indicators. When you analyze McKesson charts, please remember that the event formation may indicate an entry point for a short seller, and look at other indicators across different periods to confirm that a breakdown or reversion is likely to occur.| Cycle Indicators | ||
| Math Operators | ||
| Math Transform | ||
| Momentum Indicators | ||
| Overlap Studies | ||
| Pattern Recognition | ||
| Price Transform | ||
| Statistic Functions | ||
| Volatility Indicators | ||
| Volume Indicators |
About McKesson Predictive Indicators
The successful prediction of McKesson stock price could yield a significant profit to investors. But is it possible? The efficient-market hypothesis suggests that all published stock prices of traded companies, such as McKesson, already reflect all publicly available information. This academic statement is a fundamental principle of many financial and investing theories used today. However, the typical investor usually disagrees with a 'textbook' version of this hypothesis and continually tries to find mispriced stocks to increase returns. We use internally-developed statistical techniques to arrive at the intrinsic value of McKesson based on analysis of McKesson hews, social hype, general headline patterns, and widely used predictive technical indicators.
We also calculate exposure to McKesson's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to McKesson's related companies. | 2021 | 2022 | 2023 | 2024 (projected) | Payables Turnover | 6.59 | 6.22 | 7.15 | 8.49 | Days Of Inventory On Hand | 27.21 | 27.19 | 31.27 | 40.38 |
Story Coverage note for McKesson
The number of cover stories for McKesson depends on current market conditions and McKesson's risk-adjusted performance over time. The coverage that generates the most noise at a given time depends on the prevailing investment theme that McKesson is classified under. However, while its typical story may have numerous social followers, the rapid visibility can also attract short-sellers, who usually are skeptical about McKesson's long-term prospects. So, having above-average coverage will typically attract above-average short interest, leading to significant price volatility.
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McKesson Short Properties
McKesson's future price predictability will typically decrease when McKesson's long traders begin to feel the short-sellers pressure to drive the price lower. The predictive aspect of McKesson often depends not only on the future outlook of the 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 Outstanding | 142.2 M | |
| Cash And Short Term Investments | 4.7 B |
Check out McKesson Basic Forecasting Models to cross-verify your projections. 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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.