McKesson (MCK) closed at $834.16 in the latest trading session, marking a +1.24% move from the prior day. This change outpaced the S&P 500's 0.53% loss on the day. Elsewhere, the Dow lost 0.09%, while the tech-heavy Nasdaq lost 1%.
Prior to today's trading, shares of the prescription drug distributor had gained 1.73% outpaced the Medical sector's gain of 0.09% and lagged the S&P 500's gain of 2.06%.
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. In the meantime, our current consensus estimate forecasts the revenue to be $105.66 billion, indicating a 10.88% growth compared to the corresponding quarter of the prior year.
MCK's full-year Zacks Consensus Estimates are calling for earnings of $38.61 per share and revenue of $408.23 billion. These results would represent year-over-year changes of +16.82% and +13.7%, respectively.
Investors should also take note of any recent adjustments to analyst estimates for McKesson. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 remained unchanged. McKesson currently has a Zacks Rank of #2 (Buy).
In terms of valuation, McKesson is currently trading at a Forward P/E ratio of 21.34. This denotes a premium relative to the industry average Forward P/E of 18.14.
We can also see that MCK currently has a PEG ratio of 1.35. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Medical - Dental Supplies industry held an average PEG ratio of 2.22.
The Medical - Dental Supplies industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 93, positioning it in the top 38% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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.
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McKesson Corporation (MCK): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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