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McKesson (MCK) Gains But Lags Market: What You Should Know
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McKesson (MCK - Free Report) closed at $339.92 in the latest trading session, marking a +1.36% move from the prior day. This change lagged the S&P 500's 1.76% gain on the day. At the same time, the Dow added 1.17%, and the tech-heavy Nasdaq gained 3.03%.
Heading into today, shares of the prescription drug distributor had lost 7.78% over the past month, lagging the Medical sector's loss of 4.26% and the S&P 500's loss of 5.94% in that time.
Investors will be hoping for strength from McKesson as it approaches its next earnings release. In that report, analysts expect McKesson to post earnings of $7.14 per share. This would mark year-over-year growth of 22.47%. Our most recent consensus estimate is calling for quarterly revenue of $67.93 billion, up 2.77% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $25.93 per share and revenue of $275.74 billion. These totals would mark changes of +9.46% and +4.46%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for McKesson. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.09% lower. McKesson is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, McKesson is currently trading at a Forward P/E ratio of 12.94. This represents a discount compared to its industry's average Forward P/E of 19.6.
It is also worth noting that MCK currently has a PEG ratio of 1.25. 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 industry currently had an average PEG ratio of 1.98 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 60, which puts it in the top 24% 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 But Lags Market: What You Should Know
McKesson (MCK - Free Report) closed at $339.92 in the latest trading session, marking a +1.36% move from the prior day. This change lagged the S&P 500's 1.76% gain on the day. At the same time, the Dow added 1.17%, and the tech-heavy Nasdaq gained 3.03%.
Heading into today, shares of the prescription drug distributor had lost 7.78% over the past month, lagging the Medical sector's loss of 4.26% and the S&P 500's loss of 5.94% in that time.
Investors will be hoping for strength from McKesson as it approaches its next earnings release. In that report, analysts expect McKesson to post earnings of $7.14 per share. This would mark year-over-year growth of 22.47%. Our most recent consensus estimate is calling for quarterly revenue of $67.93 billion, up 2.77% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $25.93 per share and revenue of $275.74 billion. These totals would mark changes of +9.46% and +4.46%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for McKesson. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.09% lower. McKesson is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, McKesson is currently trading at a Forward P/E ratio of 12.94. This represents a discount compared to its industry's average Forward P/E of 19.6.
It is also worth noting that MCK currently has a PEG ratio of 1.25. 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 industry currently had an average PEG ratio of 1.98 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 60, which puts it in the top 24% 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.