McKesson (MCK) closed at $786.00 in the latest trading session, marking a +1.36% move from the prior day. This change outpaced the S&P 500's 0.53% gain on the day. At the same time, the Dow added 0.52%, and the tech-heavy Nasdaq gained 0.52%.
Shares of the prescription drug distributor witnessed a gain of 12.36% over the previous month, beating the performance of the Medical sector with its gain of 2.87%, and the S&P 500's gain of 0.71%.
Investors will be eagerly watching for the performance of McKesson in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on November 5, 2025. On that day, McKesson is projected to report earnings of $8.92 per share, which would represent year-over-year growth of 26.17%. Alongside, our most recent consensus estimate is anticipating revenue of $104.66 billion, indicating a 11.76% upward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $38.05 per share and revenue of $409.17 billion, indicating changes of +15.13% and +13.96%, respectively, compared to the previous year.
Any recent changes to analyst estimates for McKesson should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 2.45% higher. McKesson currently has a Zacks Rank of #3 (Hold).
In the context of valuation, McKesson is at present trading with a Forward P/E ratio of 20.38. This represents a premium compared to its industry average Forward P/E of 12.9.
We can additionally observe that MCK currently boasts a PEG ratio of 1.4. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. By the end of yesterday's trading, the Medical - Dental Supplies industry had an average PEG ratio of 1.53.
The Medical - Dental Supplies industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 94, finds itself in the top 39% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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McKesson Corporation (MCK): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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