McKesson (MCK) ended the recent trading session at $831.21, demonstrating a +1.08% change from the preceding day's closing price. The stock exceeded the S&P 500, which registered a loss of 0.43% for the day. Meanwhile, the Dow lost 0.37%, and the Nasdaq, a tech-heavy index, lost 0.94%.
Shares of the prescription drug distributor witnessed a gain of 0.25% over the previous month, beating the performance of the Medical sector with its loss of 2.36%, and underperforming the S&P 500's gain of 0.89%.
The investment community will be paying close attention to the earnings performance of McKesson in its upcoming release. The company is slated to reveal its earnings on February 4, 2026. The company is expected to report EPS of $9.31, up 15.94% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $105.54 billion, up 10.75% from the year-ago period.
MCK's full-year Zacks Consensus Estimates are calling for earnings of $38.63 per share and revenue of $407.94 billion. These results would represent year-over-year changes of +16.88% and +13.62%, respectively.
Investors should also pay attention to any latest changes in analyst estimates for McKesson. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. McKesson is currently sporting a Zacks Rank of #2 (Buy).
With respect to valuation, McKesson is currently being traded at a Forward P/E ratio of 21.29. For comparison, its industry has an average Forward P/E of 17.83, 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. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Medical - Dental Supplies industry was having an average PEG ratio of 1.92.
The Medical - Dental Supplies industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 84, positioning it in the top 35% 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.
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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