Should I buy McKesson stock in 2025? NZ Investor Guide

What is McKesson?

How much is the McKesson stock?

The price of McKesson stock is rising this week. Currently trading at $712.86 USD, McKesson’s price has increased by 0.10% over the past 24 hours but is down 0.31% across the week. The company has a market capitalisation of $89.1 billion, with an average 3-month daily volume of 1.07 million shares. Its price/earnings (P/E) ratio stands at 27.61, the dividend yield is 0.40%, and the stock beta is a low 0.41—offering relative stability for NZ investors seeking exposure to the US healthcare sector. With recent mild price fluctuations, McKesson may appeal to those aiming for long-term growth and moderate risk.

Our complete analysis of McKesson stock

We have thoroughly reviewed McKesson’s latest quarterly and annual financial results, as well as its recent stock performance across multiple timeframes. By leveraging an integrated approach that combines deep financial analysis, technical market signals, and in-depth industry benchmarking via our proprietary algorithms, we aim to illuminate both the strengths and the forward-looking potential of this healthcare distribution powerhouse. So, why might McKesson stock once again become a strategic entry point into the US healthcare sector in 2025?

Recent Performance and Market Context

McKesson’s share price currently stands at $712.86 (as of 29 May 2025), reflecting remarkable resilience in a sector marked by volatility. While the stock has seen a 27.08% correction over the past twelve months—primarily as a result of cyclical pressures and sector rotation—it remains up 53% over the trailing three-year period, handily outperforming broader indices during periods of healthcare outperformance. The past week has seen marginal shifts (-0.31%), with the shares finding stability following recent strategic announcements.

Notably, McKesson’s Q4 2025 results surpassed analyst expectations on both the top and bottom line, with quarterly revenues rising by 19% year-over-year to $90.8 billion and EPS jumping to $10.01 (+$3.99 vs previous quarter). This positive earnings surprise demonstrates powerful business momentum despite the challenging environment.

At the macro level, several trends support a constructive outlook for the US healthcare ecosystem: continued demographic expansion, the sustained rise of specialty pharmaceuticals, and a robust regulatory commitment to healthcare infrastructure. These trends, combined with McKesson’s unique position as a distribution leader, favour a scenario where operational leverage and scale translate into renewed upside—particularly attractive for exposure-seeking NZ investors who value international diversification.

Technical Analysis

From a technical standpoint, McKesson is displaying classic signs of stabilization and potential reaccumulation. The current 14-day RSI stands at 45.27, suggesting the stock is neither overbought nor oversold—an auspicious setup after a period of correction. The MACD remains slightly bearish at -1.81, but moving average signals begin to turn constructive:

• The short-term 5-day MA at $711.59 is a buy signal, as is the 100-day ($706.93) and 200-day ($704.21) MAs, indicating a robust underlying support structure.
• Key support is clustered at $704.99, essentially the recent daily trough, whereas resistance sits at $731.00—the prior 52-week high.
• Cumulatively, with seven bullish signals across the moving averages, the technical profile is beginning to tilt towards a consolidation-to-reversal scenario.

Given subdued yet stable momentum, a technical base is being laid for new buyers to consider entry at what appears a cyclical low, maximizing upside potential should sentiment shift positively.

Fundamental Analysis

Fundamentally, few companies in the healthcare space can rival McKesson’s scale or earnings dynamism:

• Revenue growth: Annual revenues rose to $359.1 billion (+16% YoY), hand-in-glove with expanding operating leverage.
• Profitability: Adjusted annual EPS reached $25.72, setting a new company record and beating consensus by a considerable margin. Q4’s $10.01 EPS also eclipsed analyst expectations by nearly $4.
• Strategic expansion: The planned spin-off of the Medical-Surgical Solutions business (which generated $11.4 billion in 2025) will allow a sharper focus on higher-growth, higher-margin verticals, particularly oncology and biopharmaceuticals.
• Valuation: Trading at a forward P/E of 27.61, McKesson is reasonably valued considering sector leadership and high earnings visibility. The low beta (0.41) offers defensive characteristics—attractive for long-term portfolio stability, especially relevant for NZ-based investors seeking US blue chip exposure.
• Structural strengths: As one of the three giants controlling over 90% of US pharmaceutical distribution, McKesson’s market share, supplier network, and innovative health-tech platforms provide deep competitive moats.

Collectively, these attributes help underpin the case for renewed investor interest and suggest that recent share price underperformance may have limited further downside.

Volume and Liquidity

A key feature of McKesson’s market profile is its robust liquidity and stable institutional support:

• Trading volume: The average daily turnover exceeds 1.07 million shares, reflecting strong institutional interest and confidence.
• Market float: With 124.89 million shares publicly available out of 125.11 million outstanding, the high float fosters active price discovery and allows for efficient capital inflow—a positive for dynamic valuation adjustments.

Such liquidity characteristics help confirm that entry and exit points are flexible, reducing execution risk for NZ-based traders and investors.

Catalysts and Positive Outlook

Several imminent and longer-term catalysts continue to enhance McKesson’s bullish narrative:

• Strategic restructuring: The planned separation of Medical-Surgical Solutions (“NewCo”) is expected to unlock value and sharpen core operations—a classic catalyst for share rerating.
• Oncology & specialty expansion: Recent acquisitions in the oncology space augment exposure to one of the highest-growth segments in healthcare, boosting margin and revenue visibility.
• Biopharma growth: Ongoing expansion in biopharmaceutical solutions positions McKesson at the intersection of innovation and distribution scale—a powerful combination.
• ESG Initiatives: Continued investment in supply chain sustainability and digitalisation strengthens its position with ESG-oriented global funds.

Management’s forward guidance for FY2026—EPS of $36.75-$37.55—signals confidence in both the post-spin structure and core business trajectory.

All of these drivers suggest the stock is transitioning from a period of correction to a phase characterized by tangible, catalyst-backed upside potential.

Investment Strategies

Given the current setup, McKesson offers multiple accommodation points for various investor time horizons:

• Short-term: With the stock stabilizing above key support ($704.99), opportunistic traders may eye a technical bounce towards the previous high at $731.00. The anticipated news flow around the NewCo separation could act as a near-term volatility catalyst.
• Medium-term: Investors looking for value inflection may seek to accumulate ahead of the formal spin-off and before Q3/Q4 2025 earnings, capitalising on the improving sector sentiment and above-consensus guidance.
• Long-term: For growth-orientated allocations, McKesson stands out given its market leadership, robust financials, and structural transformation into higher-margin segments. Its multi-year growth trajectory, combined with low beta and a solid dividend stream (yield currently at 0.40%), is ideally suited for NZ-based portfolios seeking long-term, US-domiciled healthcare exposure.

In each case, positioning at or near current technical support provides a blend of risk mitigation and strong prospective reward, especially if upcoming catalysts materialize as anticipated.

Is it the Right Time to Buy McKesson?

Bringing together technical signals, robust fundamentals, and future-facing catalysts, McKesson appears poised at a pivotal moment. The combination of a solid balance sheet, outstanding revenue growth, sustained market dominance, and the imminent value unlock from the Medical-Surgical Solutions separation all suggest the fundamentals justify renewed investor attention. The stock’s recent consolidation, supported by meaningful technical and liquidity backdrops, further enhances its attractiveness as a strategic entry point.

Looking ahead to 2025 and beyond, McKesson’s blend of defensive resilience, innovation-led growth, and focused execution signals the beginning of a new bullish phase. For NZ investors—and indeed any globally oriented portfolio—McKesson seems to represent an excellent opportunity to gain exposure to the next evolutionary chapter in American healthcare.

As market sentiment stabilises and the company leans into its strategic transformation, McKesson offers compelling upside potential, meriting focused consideration from investors seeking both reliability and growth at an opportune technical juncture.

How to buy McKesson stock in New Zealand?

Buying McKesson stock online is both straightforward and secure for investors in New Zealand when using a regulated broker. Today’s leading online platforms make it easy to access US-listed shares like McKesson (symbol: MCK) whether you want to own the shares directly (“spot” buying) or trade via contracts for difference (CFDs). Direct share purchases suit long-term investors, while CFDs allow flexible trading with leverage. Further down the page, you’ll find a detailed broker comparison to help you select the most suitable platform for your needs.

Spot (Cash) Buying

A cash purchase means you directly buy McKesson shares on the NYSE and become a shareholder, eligible for dividends and voting rights. Most NZ-friendly brokers charge either a fixed NZD commission per order (often around $5–$15 NZD) or a small percentage of the transaction value.

Practical example

Assume McKesson’s price is USD 712.86 (approx. NZD 1,170 at a NZD/USD rate of 0.61). With a NZD 1,000 stake, you can buy around 0.85 shares (NZD 1,000 ÷ NZD 1,170), accounting for a $5 NZD brokerage fee.

Gain scenario: If the share price rises by 10%, your investment grows to NZD 1,100.

Result: +NZD 100 gross gain, or +10% on your initial investment.

Trading via CFD

CFD trading lets you speculate on McKesson's share price without owning the underlying asset. CFDs are popular with active traders seeking leverage and short-term opportunities. Fees typically include the bid-ask spread plus overnight financing (if the position is held beyond a day).

Example

You open a CFD trade on McKesson with NZD 1,000 and 5× leverage, giving you NZD 5,000 exposure to the stock.

Gain scenario: If the stock rises by 8%, your position gains 8% × 5 = 40%.

Result: +NZD 400 profit on a NZD 1,000 deposit (before fees).

Final Advice

Always compare brokers’ transaction fees, spreads, currency conversion rates, and regulatory protections before investing in McKesson shares from New Zealand. Whether you opt for spot buying or CFD trading will depend on your investment horizon and risk appetite. To make an informed decision, consult the broker comparison further down this page and choose the option that best aligns with your financial goals.

Our 7 tips for buying McKesson stock

The latest news about McKesson

McKesson surpassed market expectations in Q4 2025, reporting revenue up 19% at $90.8 billion and higher EPS. The company’s latest quarterly results show robust financial health, with both revenue and earnings per share beating consensus analyst forecasts. This outperformance is notable given challenging market conditions in the healthcare distribution sector. For New Zealand investors, McKesson’s track record in delivering above-expectation financial performance is a positive signal for international portfolio exposure, particularly as pharmaceutical supply chains remain global and the sector is relevant for NZ’s health infrastructure.

McKesson’s strategic separation of its Medical-Surgical segment into an independent company targets enhanced value creation. Announced in late May 2025, this spinoff intends to let McKesson focus on its fastest-growing areas, such as oncology and biopharmaceutical solutions, while “NewCo” leverages its $11.4 billion revenue base in the medical-surgical market. This realignment is expected to unlock shareholder value and streamline operations, which is attractive for institutional and retail investors in New Zealand seeking efficient, growth-oriented healthcare exposures in the U.S. market, given limited direct alternatives locally.

Technical analysis indicates a consolidating stock with neutral signals and a stable outlook at current levels. With the RSI at 45.27 and 7 out of 12 moving average signals flashing a “buy,” the technical picture suggests McKesson is in a phase of price consolidation, offering potential for a rebound. Investors in New Zealand, who often favor steady, low-beta stocks (beta 0.41), may appreciate that McKesson exhibits both relative price stability and recovery potential, fitting a conservative risk profile amid currency and sectoral diversification strategies.

Guidance for 2026 suggests continued EPS growth, with a projected range of $36.75–$37.55, supporting an optimistic outlook. Despite recent stock price volatility and a 27% annual decline, management has reaffirmed confidence in McKesson’s core operations and strategic direction, signalling sustained momentum in specialty pharmaceuticals and oncology. The consistent upward revision of earnings guidance can be viewed as a key positive catalyst for New Zealand investors focused on growth stocks in U.S. healthcare with clear, upward-trending earnings trajectories.

McKesson maintains a dominant position distributing a third of the U.S. pharmaceutical market, benefitting local NZ healthcare supply chains. Even though McKesson’s physical presence is limited to North America, its global sourcing power affects drug price dynamics and supply chain reliability worldwide, including New Zealand, where access to leading pharmaceuticals depends on stable, efficient U.S. supply chains. The company’s scale and technology leadership not only underpin its strong financials but also mitigate some risks for NZ pharmaceutical importers and support global portfolio resilience for NZ-based investors.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.