McKesson Corporation (NYSE: MCK) shares rose in value on Wednesday January 25 on slower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
Meanwhile, the Dow Jones Industrial Average on Wednesday crossed the 20,000 level for the first time, while the S&P 500 and Nasdaq Composite also traded in record territory shortly after the market opened
The Dow Jones Industrial Average DJIA, +0.60% advanced 100 points, or 0.5%, to 20,012,
The S&P 500 index SPX, +0.55% gained 10 points, or 0.5%, to 2,289, with eight of the main 11 sectors trading higher.
The Nasdaq Composite index COMP, +0.66% was 30 points, or 0.6%, higher at 5,630.
All three main indexes set intraday records shortly after the opening bell.
Analysts at Vetr Inc. upgraded shares of McKesson Corporation (NYSE: MCK) from Buy to Strong-Buy today. Vetr Inc. currently has a rating of Strong-Buy on the shares. The one-year price target of $158.86 is above the opening price of $148.73, causing a number of other analysts to report on the stock in recent days. Looking back over the last year, McKesson Corporation stock has a high of $199.43. Stock prices sometimes get a bounce to the upside when analysts upgrade a stock.
Yesterday McKesson Corporation (NYSE: MCK) shares last traded at $150.23, which is a spike of $1.92 from the previous closing price. Opening at $148.73, they ranged from $148.67 and $150.46 throughout the day.
McKesson Corporation (NYSE: MCK) now has a market cap of 33.96B.
McKesson Corporation (NYSE: MCK) Average Daily Trading Volume
100,655 shares crossed the trading desk yesterday, 41 percent below the norm, out of a total float 225,354,000. lower than normal. Look for trading volume to pick up in the coming days as momentum traders often use swings in trading volume to identify heavy volume accumulation or distribution by institutional investors.
As with all potential breakouts, investors look for volume to be at least 40%-50% higher than normal on the breakout to show that fund managers and other professional investors are jumping in.
Institutional sponsorship simply refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These instituitional investors retain teams of analysts researching thousands of stocks. So watching their interests is a good way to make sure you are buying the right stocks.
McKesson Corporation (NYSE: MCK) Moving Averages
A moving average can also act as support or resistance. In an uptrend a 50-day, 100-day or 200-day moving average may act as a support level, as shown in the figure below.
This is because the average acts like a floor (support), so the price bounces up off of it.
In a downtrend a moving average may act as resistance; like a ceiling, the price hits it and then starts to drop again.
By identifying trends, moving averages allow investors to make those trends work in their favor and increase the number of successful trades.
Trades for McKesson Corporation (NYSE: MCK) have ranged from $114.53 – 199.43, and the stock now has a 50-day MA of $144.92 and 200-day MA of $163.92. Today’s last price is 24.67%% below the 52 week high of $199.43.
Indeed, earnings growth is among the most crucial things to look at in regards to stock investing and, accordingly, investors seek companies that have increased their earnings at least 25% or more over the past 3 years.
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