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Are Investors Undervaluing McKesson (MCK) Right Now?
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is McKesson (MCK - Free Report) . MCK is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 13.62. This compares to its industry's average Forward P/E of 16.91. Over the past 52 weeks, MCK's Forward P/E has been as high as 15.11 and as low as 9.58, with a median of 12.67.
MCK is also sporting a PEG ratio of 1.36. 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. MCK's PEG compares to its industry's average PEG of 1.69. Within the past year, MCK's PEG has been as high as 1.52 and as low as 0.96, with a median of 1.25.
Finally, investors should note that MCK has a P/CF ratio of 21.77. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 21.99. Within the past 12 months, MCK's P/CF has been as high as 24.50 and as low as -10.53, with a median of 18.63.
These are just a handful of the figures considered in McKesson's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that MCK is an impressive value stock right now.
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Are Investors Undervaluing McKesson (MCK) Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is McKesson (MCK - Free Report) . MCK is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 13.62. This compares to its industry's average Forward P/E of 16.91. Over the past 52 weeks, MCK's Forward P/E has been as high as 15.11 and as low as 9.58, with a median of 12.67.
MCK is also sporting a PEG ratio of 1.36. 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. MCK's PEG compares to its industry's average PEG of 1.69. Within the past year, MCK's PEG has been as high as 1.52 and as low as 0.96, with a median of 1.25.
Finally, investors should note that MCK has a P/CF ratio of 21.77. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 21.99. Within the past 12 months, MCK's P/CF has been as high as 24.50 and as low as -10.53, with a median of 18.63.
These are just a handful of the figures considered in McKesson's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that MCK is an impressive value stock right now.