A bullish thesis on McKesson Corporation argues the stock's decline from nearly $1,000 to around $740 creates an attractive opportunity, with intrinsic value estimated between $885 and $1,275 per share. The selloff followed a fiscal 2026 fourth-quarter revenue miss, but the core investment thesis remains intact due to McKesson's dominant position in the U.S. pharmaceutical distribution oligopoly alongside Cencora and Cardinal Health. The company generated $5.4 billion in free cash flow in fiscal 2026 and has reduced its share count by more than 60% over two decades through aggressive buybacks, including a newly authorized $5 billion repurchase program. McKesson is also shifting toward higher-margin businesses, with its Oncology and Multi-Specialty segment delivering 31% revenue growth and 53% operating profit growth in fiscal 2026. The thesis was shared on r/ValueInvesting by OnTheStreetwithLou.
McKesson CorporationBullish thesis highlights intrinsic value above current price, strong FCF, aggressive buybacks, and new $5B repurchase program.
Cardinal Health Inc
Cencora Inc.
Zoetis Inc
UnitedHealth Group Incorporated