Here's Why You Should Retain McKesson Stock in Your Portfolio Now

Core Insights - McKesson Corporation is positioned for growth due to its strong Biologics business and positive fiscal Q1 2025 performance, despite facing competition and pricing pressures in the generic pharmaceutical market [1] - Over the past year, McKesson shares have increased by 36.1%, outperforming the industry and the S&P 500 [1] - The company has a market capitalization of $64.64 billion and anticipates a 13.4% growth over the next five years [1] Growth Drivers - The Biologics segment is a key growth area, with recent partnerships enhancing its market position, including exclusive agreements with Sentynl Therapeutics and Geron Corporation [2] - McKesson is actively pursuing acquisitions and divestitures to focus on oncology and biopharma services, including the sale of its Rexall and Well.ca businesses and acquiring a controlling interest in Core Ventures [3][4] Financial Performance - McKesson's fiscal Q1 2025 results were mixed, with earnings exceeding estimates but revenues falling short, driven by strong demand in the U.S. pharmaceutical segment [4] - The company experienced a decline in gross profit and margin, attributed to lower COVID-19-related sales and divestitures in Europe [5] Market Challenges - The Distribution Solutions segment faces significant competition from various wholesalers and logistics companies, limiting pricing negotiation power due to reliance on fewer suppliers [5] - Despite these challenges, McKesson has seen a positive estimate revision trend, with a 1.9% increase in the Zacks Consensus Estimate for earnings per share over the past 90 days [6] Revenue Projections - The Zacks Consensus Estimate for Q2 fiscal 2025 revenues is projected at$ 89.57 billion, reflecting a 16% increase from the previous year [6]