Is McKesson Stock Built to Withstand More Downside?
McKesson (MCK) stock is down 9.4% in 5 trading days. The recent slide reflects renewed concerns around broader healthcare sector pressures and drug pricing, but sharp drops like this often raise a tougher question: is the weakness temporary, or a sign of deeper cracks in the story?
Before judging its downturn reslience, let’s look at where McKesson stands today.
- Size: McKesson is a $100 Bil company with $387 Bil in revenue currently trading at $805.37.
- Fundamentals: Last 12 month revenue growth of 17.2% and operating margin of 1.4%.
- Liquidity: Has Debt to Equity ratio of 0.1 and Cash to Assets ratio of 0.05
- Valuation: McKesson stock is currently trading at P/E multiple of 23.8 and P/EBIT multiple of 17.7
These metrics point to a Moderate operational performance, alongside Moderate valuation – making the stock Fairly Priced. For details, see Buy or Sell MCK Stock
That brings us to the key consideration for investors worried about this fall: how resilient is MCK stock if markets turn south? This is where our downturn resilience framework comes in. Suppose MCK stock falls another 20-30% to $564 – can investors comfortably hold on? Turns out, the stock saw an impact slightly worse than the S&P 500 index during various economic downturns, based on (a) how much the stock fell and, (b) how quickly it recovered. Below, we dive deeper into each such downturn.
2022 Inflation Shock
- MCK stock fell 15.7% from a high of $397.58 on 3 November 2022 to $335.35 on 15 March 2023 vs. a peak-to-trough decline of 25.4% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 17 May 2023
- Since then, the stock increased to a high of $889.28 on 25 November 2025 , and currently trades at $805.37
| MCK | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -15.7% | -25.4% |
| Time to Full Recovery | 63 days | 464 days |
2020 Covid Pandemic
- MCK stock fell 32.3% from a high of $170.96 on 21 February 2020 to $115.75 on 23 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 9 November 2020
| MCK | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -32.3% | -33.9% |
| Time to Full Recovery | 231 days | 148 days |
2018 Correction
- MCK stock fell 38.8% from a high of $176.72 on 26 January 2018 to $108.23 on 24 December 2018 vs. a peak-to-trough decline of 19.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 9 November 2020
| MCK | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -38.8% | -19.8% |
| Time to Full Recovery | 686 days | 120 days |
2008 Global Financial Crisis
- MCK stock fell 57.9% from a high of $67.92 on 16 January 2008 to $28.60 on 20 November 2008 vs. a peak-to-trough decline of 56.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 23 April 2010
| MCK | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -57.9% | -56.8% |
| Time to Full Recovery | 519 days | 1480 days |
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