Shares of McKesson Corporation (MCK) have dropped over 10 percent year-to-date due to the heated political debate over drug pricing. Greg Nathan, portfolio manager for the FPA U.S. Value Fund (FPPFX) , said the drug distribution giant's stock is too cheap to ignore considering its quality. "McKesson has recession resistant growth which is two to three times GDP growth and it trades at a 20 percent discount to the market,' said Nathan. Nathan is also bullish on fellow drug distributor AmerisourceBergen (ABC) , down 18 percent this year. CVS (CVS) is another one of his top picks. The drug store giant has seen its shares stumble six percent so far in 2016, nevertheless, Nathan believes it has 'unmatched assets' that will continue to grow above market rate for many years to come. Finally, Nathan is a fan of Walgreens Boots Alliance (WBA) , down two percent year-to-date. In his view, future growth for Walgreens Boots Alliance will come from a mix of organic growth and acquisitions. The company plans to acquire Rite Aid (RAD) for $17 billion. Rite Aid is the third-largest drugstore chain in the U.S. The acquisition will increase Walgreens Boots Alliance's store count by about 50% to more than 12,000 locations.
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