8 Stocks on Jim Cramer’s Radar Recently

6. McKesson Corporation (NYSE:MCK)

Number of Hedge Fund Holders: 78

McKesson Corporation (NYSE:MCK) was mentioned during the episode, and here’s what Mad Money’s host had to say:

“These stocks, namely Cardinal Health, Cencora, and McKesson, are seemingly perpetual residents on the new high list. Over the long haul, they’re some of the best performers out there, and they’ve done great this year, as is pretty much always the case. And yet, doesn’t it always feel like the drug distributors are just one bad day away from falling apart… The last quarter from the major drug distributors came from McKesson, and that was last Thursday night, which delivered yet another very strong set of numbers… Like the others. McKesson had a top-line miss, in this case, actually a pretty sizable one, but still delivered a significant earnings beat, and gave a higher-than-expected full-year earnings forecast in a vacuum.

I think the McKesson quarter was strong enough to spark a nice rally for the stock last Friday. But we don’t live in a vacuum, do we?… The big negative development for the drug distributors came midweek when Politico reported that President Trump would be reviving an effort to dramatically cut drug costs by adopting what’s known as the Most-Favored-Nation pricing for Medicare…

As a result, all the drug distributors are either flat or slightly lower this week… so that’s the conundrum with these middlemen, Cardinal, Cencora, and McKesson are all doing incredibly well, but like I said before, there always seems to be a threat that they could be regulated out of existence.”

McKesson (NYSE:MCK) provides healthcare services by distributing medications, medical products, and handling logistics. The company also supplies technology tools, advisory services, and support for healthcare providers, biopharma companies, and patients.