McKesson (MCK) closed at $823.01 in the latest trading session, marking a +1.13% move from the prior day. This change outpaced the S&P 500's 0.16% loss on the day. Meanwhile, the Dow experienced a drop of 0.09%, and the technology-dominated Nasdaq saw a decrease of 0.59%.
Heading into today, shares of the prescription drug distributor had lost 3.36% over the past month, lagging the Medical sector's gain of 1.12% and the S&P 500's loss of 0.21%.
Investors will be eagerly watching for the performance of McKesson in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $9.19, marking a 14.45% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $105.66 billion, up 10.88% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $38.61 per share and a revenue of $408.23 billion, demonstrating changes of +16.82% and +13.7%, respectively, from the preceding year.
Investors might also notice recent changes to analyst estimates for McKesson. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 moved 0.13% lower. Right now, McKesson possesses a Zacks Rank of #3 (Hold).
In terms of valuation, McKesson is presently being traded at a Forward P/E ratio of 21.08. This signifies a premium in comparison to the average Forward P/E of 18.23 for its industry.
Meanwhile, MCK's PEG ratio is currently 1.34. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Medical - Dental Supplies was holding an average PEG ratio of 2.35 at yesterday's closing price.
The Medical - Dental Supplies industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 144, which puts it in the bottom 42% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
McKesson Corporation (MCK): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
