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%.
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MCK's Stochastic Oscillator stays in oversold zone for 1 day
Be on the lookout for a price bounce soon.
Technical Analysis (Indicators)
Bullish Trend Analysis
The 50-day moving average for MCK moved above the 200-day moving average on September 03, 2026. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
Following a +4.57% 3-day Advance, the price is estimated to grow further. Considering data from situations where MCK advanced for three days, in 256 of 385 cases, the price rose further within the following month. The odds of a continued upward trend are 66%.
The Aroon Indicator entered an Uptrend today. In 267 of 360 cases where MCK Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 74%.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on September 09, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on MCK as a result. In 42 of 92 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 46%.
The Moving Average Convergence Divergence Histogram (MACD) for MCK turned negative on September 09, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 52 similar instances when the indicator turned negative. In 24 of the 52 cases the stock turned lower in the days that followed. This puts the odds of success at 46%.
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 50 of 62 cases within the following month. The odds of a continued downward trend are 42%.
MCK broke above its upper Bollinger Band on August 25, 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 11 (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 (7.717). P/E Ratio (23.646) is within average values for comparable stocks, (19.412). Projected Growth (PEG Ratio) (1.663) is also within normal values, averaging (1.318). MCK has a moderately low Dividend Yield (0.004) as compared to the industry average of (0.007). P/S Ratio (0.263) is also within normal values, averaging (4.329).
The Tickeron Profit vs. Risk Rating rating for this company is 14 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 74, placing this stock better than average.
The Tickeron Price Growth Rating for this company is 47 (best 1 - 100 worst), indicating steady price growth. MCK’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron PE Growth Rating for this company is 64 (best 1 - 100 worst), pointing to 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 100 (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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