Kristi sells MCK 185.03: The company does not shy away from deploying capital to acquire other assets to drive growth in the future.

The company has been highly acquisitive, growing dividends over time and buying back its shares to drive shareholder value. I would feel comfortable with a 5-year stock price outlook in the range of the low-to-mid $300 level. With the latest acquisitions and partnerships, the share price deduced from my exercise above appears to be somewhat aggressive. There is plenty of upside in this stock over the long term. Finance is currently at $258 per share.


Sheila:
Combining the dividends and share buybacks, I predict McKesson will boast a share price north of $350 and for a 75% upside or 15% annual return over the next 5 years.

Shu:
The PEG ratio is based on a 5-year outlook.

Shakita:
Although the repurchase program is not very aggressive, capital is being deployed in a variety of ways via acquisitions, dividends and share repurchases to reward shareholders.

Madlyn:
This would allow the company to remove over 2.4 million shares from the open market or 1% of outstanding shares.

Janelle:
McKesson currently has a new share repurchase program that was approved and earmarked $500 million to buyback and retire shares.

Rosenda:
This translates into a 0.55% yield based on its current price.

Sophia:
The company has increased its quarterly dividend payout by nearly 360% over the past 10 years from $0.06 to $0.28 per quarter.

Lesli:
Specifically regarding McKesson and prescription drug expenditures, this area is projected to have grown 12.6 percent in 2014 to $305.1 billion.

Sharie:
Healthcare expenditure as a percentage of GDP is expected to rise from 17.4% in 2013 to 19.6% by 2024. Healthcare spending is projected to have grown 5.5% in 2014, significantly outpacing economic growth.

Mayme:
The company expects the transaction to add approximately 10-14 cents to EPS in 2016, while having more of a positive impact in subsequent years.

Mckesson Corp. (NYSE:MCK)
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