How AI Adoption Could Supercharge McKesson (MCK) Soumya Eswaran Thu, October 8, 2026 at 9:45 AM EDT 3 min read MCK +1.01% ^GSPC -0.31% Trade MCK on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
Suncoast Equity Management, an SEC-registered Investment Advisory (RIA), released its Q3 2026 investor letter for "U.S. Equity Large Cap Select Growth Strategy." The letter can be downloaded here. The strategy advanced 4.2% after fees in Q3, compared to 2.3% for the S&P 500, marking a potential shift in market leadership. Despite lagging the S&P 500 over the last four quarters ending June 30, 2026, the gap between portfolio EPS growth and returns is narrowing. Select Growth has risen 14.5% after fees since March, suggesting a promising investment opportunity, especially if severe macro conditions do not arise. Also, check the strategy's top five holdings to see its best picks in 2026.
In its Q3 2026 investor letter, SEM U.S. Equity Large Cap Select Growth Strategy highlighted McKesson Corporation (NYSE:MCK). McKesson Corporation (NYSE:MCK) is a leading healthcare services company headquartered in Irving, Texas. On October 07, 2026, McKesson Corporation (NYSE:MCK) closed at $910.33 per share. Over the past month. McKesson Corporation (NYSE:MCK) returned 3.48% and its shares gained 20.26% over the past 52 weeks. McKesson Corporation (NYSE:MCK) has a market capitalization of $106.14 billion, and its stock has traded with a range of $687.68 and $999.00.
SEM U.S. Equity Large Cap Select Growth Strategy stated the following regarding McKesson Corporation (NYSE:MCK) in its Q3 2026 investor letter:
"Given the sheer amount of news coverage surrounding AI, it might seem there is little investment oxygen left in the room for non-AI companies. However, that is not the case. Over time, we believe nearly all companies will become AI companies as with any major technological adoption, the economic benefits of the new technology gradually migrate from its providers to its adopters. One example is portfolio company McKesson Corporation (NYSE:MCK), the nation's largest distributor of branded, generic and specialty pharmaceuticals. It continues to quietly deliver mid-teens earnings growth and strong free cash flows year after year. Its results are supported by favorable U.S. demographics, enormous scale, growth in drug volumes, pricing, expansion in specialty pharmaceuticals, and acquisitions that extend the company into higher-value healthcare services. AI could add another layer to that growth over time, improving forecasting, logistics, and administrative efficiency while potentially accelerating drug discovery and increasing the number of complex therapies flowing through MCK's distribution and specialty-care networks. The stock continues to deliver strong growth, yet the share price has moved little year to date. We believe it will, like many of the other companies we have referenced, eventually see its stock return follow profits."
McKesson Corporation (NYSE:MCK) is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 77 hedge fund portfolios held McKesson Corporation (NYSE:MCK) at the end of the second quarter which was 73 in the previous quarter. While we acknowledge the potential of McKesson Corporation (NYSE:MCK) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
In another article, we discussed McKesson Corporation (NYSE:MCK) and shared Alluvium Asset Management's views on the company. In addition, please check out our hedge fund investor letters Q3 2026 page for more investor letters from hedge funds and other leading investors.
This article is originally published at Insider Monkey.
