MCK up 16.5% at 958 can momentum carry it past 972 to 1000

Trend_Radar
02-06 21:08

$McKesson(MCK)$

McKesson Corp (MCK) Soared +16.52%: Bullish Momentum Confirmed, Eyeing $1000 Target

Latest Close Data:

MCK closed at $957.80 on Feb 5, 2026, surging +16.52% ($135.80). This places it just 1.5% below its 52-week high of $971.93.

Core Market Drivers:

  • A significant capital inflow of $669 million over the past five days (Feb 4) suggests strong institutional buying.

  • The healthcare distribution sector remains resilient, with MCK benefiting from stable pharmaceutical demand.

Technical Analysis:

  1. Volume surged to 2.25M shares (Volume Ratio: 2.50), confirming the breakout.

  2. The MACD shows a strong bullish signal with DIF (12.55) crossing above DEA (3.91) and a large positive histogram (17.28).

  3. The 6-day RSI is at a high 82.95, indicating strong momentum but nearing overbought territory.

Key Price Levels:

  • Immediate Pivot: $958 (Current consolidation level).

  • Primary Support: $821 (Previous resistance turned support).

  • Strong Resistance: $972 (52-week high).

Valuation Perspective:

TTM P/E is 29.82, which is elevated compared to its historical forward P/E average of ~18.05, but justified by strong earnings growth (EPS TTM: $32.12). P/S ratio of 0.30 remains attractive for the sector.

Analyst Targets:

16 analysts have an average price target of $945.53, with a high of $1000. Sentiment is bullish with 6 Strong Buy, 10 Buy, and 2 Hold ratings.

Weekly Outlook:

Expect consolidation near the $958 pivot. A successful break above $972 resistance could target the $1000 psychological level. Failure to hold $940 may lead to a pullback towards $900 support.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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