McKesson (MCK) ended the recent trading session at $814.63, demonstrating a -1.13% change from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily gain of 0.01%. Meanwhile, the Dow gained 0.55%, and the Nasdaq, a tech-heavy index, lost 0.44%.
Shares of the prescription drug distributor witnessed a gain of 1.33% over the previous month, trailing the performance of the Medical sector with its gain of 2.01%, and outperforming the S&P 500's gain of 0.86%.
The investment community will be closely monitoring the performance of McKesson in its forthcoming earnings report. The company is scheduled to release its earnings on February 4, 2026. The company is expected to report EPS of $9.19, up 14.45% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $105.66 billion, indicating a 10.88% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $38.61 per share and a revenue of $408.23 billion, representing changes of +16.82% and +13.7%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for McKesson. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. McKesson currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that McKesson has a Forward P/E ratio of 21.34 right now. For comparison, its industry has an average Forward P/E of 18.62, which means McKesson is trading at a premium to the group.
We can additionally observe that MCK currently boasts a PEG ratio of 1.35. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Medical - Dental Supplies industry currently had an average PEG ratio of 2.32 as of yesterday's close.
The Medical - Dental Supplies industry is part of the Medical sector. This group has a Zacks Industry Rank of 183, putting it in the bottom 26% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding 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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