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McKesson (MCK) Outpaces Stock Market Gains: What You Should Know
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McKesson (MCK - Free Report) closed the most recent trading day at $377.75, moving +1.71% from the previous trading session. This change outpaced the S&P 500's 1.43% gain on the day. At the same time, the Dow added 1.58%, and the tech-heavy Nasdaq lost 0.01%.
Heading into today, shares of the prescription drug distributor had gained 4.27% over the past month, lagging the Medical sector's gain of 5.95% and the S&P 500's gain of 5.12% in that time.
McKesson will be looking to display strength as it nears 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%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $70.04 billion, up 2.08% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $24.75 per share and revenue of $274.73 billion. These totals would mark changes of +4.47% and +4.08%, respectively, from last year.
Any recent changes to analyst estimates for McKesson should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. Within the past 30 days, our consensus EPS projection has moved 0.26% lower. McKesson is currently a Zacks Rank #3 (Hold).
Digging into valuation, McKesson currently has a Forward P/E ratio of 15.01. Its industry sports an average Forward P/E of 18.78, so we one might conclude that McKesson is trading at a discount comparatively.
Meanwhile, MCK's PEG ratio is currently 1.49. 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 industry had an average PEG ratio of 2.21 as of yesterday's close.
The Medical - Dental Supplies industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 186, which puts it in the bottom 27% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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McKesson (MCK) Outpaces Stock Market Gains: What You Should Know
McKesson (MCK - Free Report) closed the most recent trading day at $377.75, moving +1.71% from the previous trading session. This change outpaced the S&P 500's 1.43% gain on the day. At the same time, the Dow added 1.58%, and the tech-heavy Nasdaq lost 0.01%.
Heading into today, shares of the prescription drug distributor had gained 4.27% over the past month, lagging the Medical sector's gain of 5.95% and the S&P 500's gain of 5.12% in that time.
McKesson will be looking to display strength as it nears 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%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $70.04 billion, up 2.08% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $24.75 per share and revenue of $274.73 billion. These totals would mark changes of +4.47% and +4.08%, respectively, from last year.
Any recent changes to analyst estimates for McKesson should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. Within the past 30 days, our consensus EPS projection has moved 0.26% lower. McKesson is currently a Zacks Rank #3 (Hold).
Digging into valuation, McKesson currently has a Forward P/E ratio of 15.01. Its industry sports an average Forward P/E of 18.78, so we one might conclude that McKesson is trading at a discount comparatively.
Meanwhile, MCK's PEG ratio is currently 1.49. 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 industry had an average PEG ratio of 2.21 as of yesterday's close.
The Medical - Dental Supplies industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 186, which puts it in the bottom 27% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.