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McKesson (MCK) Gains As Market Dips: What You Should Know
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McKesson (MCK - Free Report) closed the most recent trading day at $375.54, moving +0.78% from the previous trading session. This change outpaced the S&P 500's 0.9% loss on the day. At the same time, the Dow lost 0.5%, and the tech-heavy Nasdaq lost 0.27%.
Prior to today's trading, shares of the prescription drug distributor had gained 0.79% over the past month. This has lagged the Medical sector's gain of 2.93% and outpaced the S&P 500's loss of 2.66% in that time.
Investors will be hoping for strength from McKesson as it approaches its next earnings release. On that day, McKesson is projected to report earnings of $6.33 per share, which would represent year-over-year growth of 2.93%. Our most recent consensus estimate is calling for quarterly revenue of $70.04 billion, up 2.08% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $24.75 per share and revenue of $274.73 billion, which would represent changes of +4.47% and +4.08%, respectively, from the prior year.
Investors should also note any recent changes to 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 company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.06% lower. McKesson is currently a Zacks Rank #3 (Hold).
Digging into valuation, McKesson currently has a Forward P/E ratio of 15.06. Its industry sports an average Forward P/E of 18.83, so we one might conclude that McKesson is trading at a discount comparatively.
It is also worth noting that MCK currently has a PEG ratio of 1.5. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Medical - Dental Supplies was holding an average PEG ratio of 2.26 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 213, which puts it in the bottom 16% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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McKesson (MCK) Gains As Market Dips: What You Should Know
McKesson (MCK - Free Report) closed the most recent trading day at $375.54, moving +0.78% from the previous trading session. This change outpaced the S&P 500's 0.9% loss on the day. At the same time, the Dow lost 0.5%, and the tech-heavy Nasdaq lost 0.27%.
Prior to today's trading, shares of the prescription drug distributor had gained 0.79% over the past month. This has lagged the Medical sector's gain of 2.93% and outpaced the S&P 500's loss of 2.66% in that time.
Investors will be hoping for strength from McKesson as it approaches its next earnings release. On that day, McKesson is projected to report earnings of $6.33 per share, which would represent year-over-year growth of 2.93%. Our most recent consensus estimate is calling for quarterly revenue of $70.04 billion, up 2.08% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $24.75 per share and revenue of $274.73 billion, which would represent changes of +4.47% and +4.08%, respectively, from the prior year.
Investors should also note any recent changes to 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 company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.06% lower. McKesson is currently a Zacks Rank #3 (Hold).
Digging into valuation, McKesson currently has a Forward P/E ratio of 15.06. Its industry sports an average Forward P/E of 18.83, so we one might conclude that McKesson is trading at a discount comparatively.
It is also worth noting that MCK currently has a PEG ratio of 1.5. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Medical - Dental Supplies was holding an average PEG ratio of 2.26 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 213, which puts it in the bottom 16% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.