McKesson (MCK) closed at $801.67 in the latest trading session, marking a +1.1% move from the prior day. This change outpaced the S&P 500's 0.79% gain on the day. Elsewhere, the Dow saw an upswing of 1.01%, while the tech-heavy Nasdaq appreciated by 1.15%.
The stock of prescription drug distributor has risen by 7.66% in the past month, leading the Medical sector's gain of 3.99% and the S&P 500's gain of 1.27%.
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. The company is expected to report EPS of $8.92, up 26.17% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $104.66 billion, showing a 11.76% escalation compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $38.05 per share and a revenue of $409.17 billion, indicating changes of +15.13% and +13.96%, respectively, from the former year.
Investors should also take note of any recent adjustments to analyst estimates for McKesson. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.56% decrease. McKesson currently has a Zacks Rank of #3 (Hold).
Looking at valuation, McKesson is presently trading at a Forward P/E ratio of 20.84. This denotes a premium relative to the industry average Forward P/E of 13.51.
Investors should also note that MCK has a PEG ratio of 1.43 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Medical - Dental Supplies stocks are, on average, holding a PEG ratio of 1.64 based on yesterday's closing prices.
The Medical - Dental Supplies industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 98, which puts it in the top 40% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in 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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