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.
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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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