McKesson is engaged in healthcare services. Co. operates its business in four reportable segments: U.S. Pharmaceutical, which distributes branded, generic, specialty, biosimilar and over-the-counter pharmaceutical drugs, and other healthcare-related products; Prescription Technology Solutions, which provides prescription price transparency, benefit insight, dispensing support services, third-party logistics, and wholesale distribution support; Medical-Surgical Solutions, which provides medical-surgical supply distribution, logistics, and other services to healthcare providers; and International, which provides distribution and services to wholesale, institutional, and retail customers.
When researching a stock like McKesson, many investors are the most familiar with Fundamental Analysis — looking at a company's balance sheet, earnings, revenues, and what's happening in that company's underlying business. Investors who use Fundamental Analysis to identify good stocks to buy or sell can also benefit from MCK Technical Analysis to help find a good entry or exit point. Technical Analysis is blind to the fundamentals and looks only at the trading data for MCK stock — the real life supply and demand for the stock over time — and examines that data in different ways. One of those ways is to calculate a Simpe Moving Average ("SMA") by looking back a certain number of days. One of the most popular "longer look-backs" is the MCK 200 day moving average ("MCK 200 DMA"), while one of the most popular "shorter look-backs" is the MCK 50 day moving average ("MCK 50 DMA"). A chart showing both of these popular moving averages is shown on this page for McKesson. Comparing two moving averages against each other can be a useful visualization tool: by calculating the difference between the MCK 200 DMA and the MCK 50 DMA, we get a moving average convergence divergence indicator ("MCK MACD"). The MCK MACD chart, in conjunction with the chart of the moving averages, basically helps in visualizing how the moving averages are showing convergence (moving closer together), or divergence (moving farther apart). |
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Video: Technical Analysis