Do You Think McKesson Corporation (MCK) Stock is Exposed to the Current Macroeconomic Problems?

Baron Funds, an investment management company, released its “Baron Health Care Fund” third quarter 2022 investor letter. A copy of the same can be downloaded here. In the third quarter, the fund declined 6.01% compared to a 4.72% decline for the Russell 3000 Health Care Index. The fund’s underperformance in the quarter was attributed to poor stock selection. In addition, please check the fund’s top five holdings to know its best picks in 2022.

Baron Funds highlighted stocks like McKesson Corporation (NYSE:MCK) in its Q3 2022 investor letter. Headquartered in Irving, Texas, McKesson Corporation (NYSE:MCK) is a healthcare service provider. On October 14, 2022, McKesson Corporation (NYSE:MCK) stock closed at $352.65 per share. One-month return of McKesson Corporation (NYSE:MCK) was 1.06% and its shares gained 75.62% of their value over the last 52 weeks. McKesson Corporation (NYSE:MCK) has a market capitalization of $50.686 billion.

Here is what Baron Funds specifically said about McKesson Corporation (NYSE:MCK) in its Q3 2022 investor letter:

McKesson Corporation (NYSE:MCK) is a leading distributor of pharmaceuticals and medical supplies. The company also provides prescription technology solutions that connect pharmacies, providers, payers, and biopharmaceutical customers. The stock price rose on solid financial results as its business is less exposed to current macroeconomic headwinds. We continue to have conviction that McKesson can grow earnings per share by an average of 12% to 14% annually and think the stock is still reasonably valued.”

McKesson Corporation (NYSE:MCK) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 47 hedge fund portfolios held McKesson Corporation (NYSE:MCK) at the end of the second quarter which was 59 in the previous quarter.

We discussed McKesson Corporation (NYSE:MCK) in another article and shared Carillon Tower Advisers’ views on the company. In addition, please check out our hedge fund investor letters Q3 2022 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.