5 Best Stocks To Buy According to Billionaire Larry Robbins

3. McKesson Corporation (NYSE:MCK)

Glenview Capital’s Stake Value: $345,135,000

Percentage of Glenview Capital’s 13F Portfolio: 6.32%

Number of Hedge Fund Holders: 51

McKesson Corporation (NYSE:MCK) is a pharmaceuticals, medical technology, and healthcare services company from New York City. Larry Robbins, via Glenview Capital, owns 1.73 million shares of McKesson Corporation (NYSE:MCK), worth $345.1 million, representing 6.32% of the fund’s total Q3 portfolio. 

In its Q3 results posted on November 1, McKesson Corporation (NYSE:MCK) reported earnings per share of $6.15, exceeding estimates by $1.49. The revenue gained 9.49% from the prior-year quarter, totaling $66.58 billion, outperforming estimates by $3.36 billion. 

In the third quarter of 2021, 51 hedge funds reported owning stakes worth $2.27 billion in McKesson Corporation (NYSE:MCK). Pzena Investment Management is the largest McKesson Corporation (NYSE:MCK) stakeholder, with approximately 3 million shares, valued at roughly $594 million. 

Mizuho analyst Ann Hynes on December 20 raised the price target on McKesson Corporation (NYSE:MCK) to $250 from $236 and kept a Neutral rating on the shares, stating that the managed care sector is set to outperform in 2022.

Here is what Broyhill Asset Management has to say about McKesson Corporation (NYSE:MCK) in its Q2 2021 investor letter:

“Analysts continued ratcheting up full-year earnings estimates for McKesson (MCK) driving the stock steadily higher. Despite strong year-to-date gains, shares of the company are trading at lower valuations today than before the pandemic as earnings estimates have outpaced their rising stock prices… The story is similar at McKesson where vaccine distribution should continue to provide upside to consensus estimates. Although investors have been hesitant to give the company full credit for today’s “temporary” profits, we think these “temporary” COVID-tailwinds may turn out to be not so temporary. If we are wrong, we believe the downside is limited given recent activist involvement and management’s decision to pursue a strategic review to capture the full value of the company’s drug development business.”