In the latest trading session, McKesson (MCK) closed at $781.90, marking a +1.61% move from the previous day. This change outpaced the S&P 500's 0.16% loss on the day. Elsewhere, the Dow gained 0.44%, while the tech-heavy Nasdaq lost 0.76%.
Shares of the prescription drug distributor witnessed a gain of 9.48% over the previous month, beating the performance of the Medical sector with its gain of 1.54%, and the S&P 500's gain of 1.14%.
Analysts and investors alike will be keeping a close eye on the performance of McKesson in its upcoming earnings disclosure. The company's earnings report is set to go public on November 5, 2025. The company's upcoming EPS is projected at $8.89, signifying a 25.74% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $103.9 billion, indicating a 10.94% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $38.05 per share and a revenue of $408.41 billion, demonstrating changes of +15.13% and +13.75%, respectively, from the preceding year.
Any recent changes to analyst estimates for McKesson should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 2.45% higher. McKesson presently features a Zacks Rank of #3 (Hold).
Digging into valuation, McKesson currently has a Forward P/E ratio of 20.23. For comparison, its industry has an average Forward P/E of 13.05, which means McKesson is trading at a premium to the group.
One should further note that MCK currently holds a PEG ratio of 1.39. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Medical - Dental Supplies industry stood at 1.47 at the close of the market yesterday.
The Medical - Dental Supplies industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 80, which puts it in the top 33% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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McKesson Corporation (MCK): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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