McKesson (MCK) closed the latest trading day at $695.17, indicating a +1.86% change from the previous session's end. This change lagged the S&P 500's 2.51% gain on the day. Elsewhere, the Dow saw an upswing of 2.66%, while the tech-heavy Nasdaq appreciated by 2.71%.
Coming into today, shares of the prescription drug distributor had gained 3.27% in the past month. In that same time, the Medical sector lost 11.09%, while the S&P 500 lost 8.86%.
Analysts and investors alike will be keeping a close eye on the performance of McKesson in its upcoming earnings disclosure. The company's earnings report is set to go public on May 8, 2025. It is anticipated that the company will report an EPS of $9.81, marking a 58.74% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $93.7 billion, indicating a 22.72% upward movement from the same quarter last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for McKesson. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.26% lower. McKesson is currently sporting a Zacks Rank of #3 (Hold).
From a valuation perspective, McKesson is currently exchanging hands at a Forward P/E ratio of 18.66. This indicates a premium in contrast to its industry's Forward P/E of 17.38.
Also, we should mention that MCK has a PEG ratio of 1.32. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Medical - Dental Supplies was holding an average PEG ratio of 1.68 at yesterday's closing price.
The Medical - Dental Supplies industry is part of the Medical sector. This group has a Zacks Industry Rank of 89, putting it in the top 36% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.
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
