5 Best Stocks to Buy Now According to Billionaire Larry Robbins

4. McKesson Corporation (NYSE:MCK)

Glenview Capital’s Stake Value: $286.5 million

Percentage of Glenview Capital’s 13F Portfolio: 5.8%

Number of Hedge Fund Holders: 59

McKesson Corporation (NYSE:MCK) is an American pharmaceutical distributor and a provider of digital health services, medical supplies and care management equipment. The company has a 78,000-strong workforce and delivers 33% of all pharmaceuticals across the United States and Canada. 

As of Q1 2022, Berkshire Hathaway, managed by Warren Buffett, is the leading stakeholder in the company, with nearly three million shares. The total money invested by 59 hedge funds in McKesson Corporation is north of $3.7 billion.

On June 7, Deutsche Bank analyst George Hill raised McKesson Corp to Buy from Hold and set a price target of $378 from $343. Hill’s bullish thesis on McKesson is a result of the analyst looking for defensive equity positioning due to concerns surrounding recessionary risks in the U.S. 

Hill noted to investors that they can pay attention to McKesson Corporation that is trading at a discount relative to the market since the company is targeting double-digit sustainable and visible earnings and cash-flow growth in a defensive non-cyclical sector with sharply visible demand.

Baron Funds discussed McKesson Corporation (MCK) in their Q1, 2022 investor letter. Here’s what they said: 

“Investments in health care distributors, health care services, and health care facilities along with cash exposure in a down market contributed to relative results. Within health care distributors, higher exposure to this strong performing sub-industry and outperformance of pharmaceutical distributor and technology solutions provider McKesson Corporation (NYSE:MCK) added value. McKesson was the top contributor as investors rotated into value stocks that were trading at low multiples of earnings. We continue to believe that McKesson’s stock is inexpensive in light of the company’s strong competitive position in growing end markets and earnings growth potential.”