McKesson Hitting the Upper Rail of a Downward Sloped Channel with Earnings Two Weeks Out
Medical equipment and pharmaceutical supplier McKesson (NYSE: MCK) is set to report earnings on January 31. While investors wait for the earnings results, the stock is facing resistance in the form of the upper rail of a downward sloped trend channel. The channel started back in late April and connects the highs from then, June, October, and November. The lower rail connects the lows from April, July/August, and December.
If the resistance holds and the stock makes another trip down to the lower rail, it would put the stock down below the $100 mark. McKesson hasn’t been under $100 since early 2013, but the trend has been to the downside since the stock hit an all-time high of $236.52 back in May 2015.
The company’s fundamentals are mixed with a decent return on equity, but slow earnings growth, sales growth, and a low profit margin. The company’s ROE is 25.3% and that is the highlight among the fundamental indicators. Earnings have only grown at a rate of 2% per year over the last three years while sales have grown at a rate of 4% during that same timeframe. It isn’t helping earnings that the company sports a profit margin of only 1.7%.
MCK in upward trend: 10-day moving average broke above 50-day moving average on July 07, 2026
The 10-day moving average for MCK crossed bullishly above the 50-day moving average on July 07, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In of 11 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on July 02, 2026. You may want to consider a long position or call options on MCK as a result. In of 92 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for MCK just turned positive on July 01, 2026. Looking at past instances where MCK's MACD turned positive, the stock continued to rise in of 53 cases over the following month. The odds of a continued upward trend are .
MCK moved above its 50-day moving average on July 02, 2026 date and that indicates a change from a downward trend to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where MCK advanced for three days, in of 387 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 345 cases where MCK Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The RSI Indicator demonstrated that the stock has entered the overbought zone. This may point to a price pull-back soon.
The Stochastic Oscillator has been in the overbought zone for 2 days. Expect a price pull-back in the near future.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where MCK declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
MCK broke above its upper Bollinger Band on July 07, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.000) is normal, around the industry mean (20.592). P/E Ratio (21.330) is within average values for comparable stocks, (43.553). Projected Growth (PEG Ratio) (1.599) is also within normal values, averaging (1.363). MCK has a moderately low Dividend Yield (0.004) as compared to the industry average of (0.007). P/S Ratio (0.252) is also within normal values, averaging (6.688).
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 78, placing this stock better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. MCK’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
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General Information
a distributer of pharmaceuticals and provides healthcare software and health information technology services
Industry MedicalDistributors
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