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McKesson (MCK) Stock Moves -0.21%: What You Should Know

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McKesson (MCK - Free Report) closed at $362.99 in the latest trading session, marking a -0.21% move from the prior day. This change was narrower than the S&P 500's 0.58% loss on the day. At the same time, the Dow lost 0.59%, and the tech-heavy Nasdaq lost 1.54%.

Coming into today, shares of the prescription drug distributor had gained 4.56% in the past month. In that same time, the Medical sector gained 0.22%, while the S&P 500 gained 2%.

McKesson will be looking to display strength as it nears its next earnings release, which is expected to be May 8, 2023. The company is expected to report EPS of $7.14, up 22.47% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $67.93 billion, up 2.77% from the year-ago period.

Investors might also notice recent changes to analyst estimates for McKesson. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. McKesson is currently a Zacks Rank #3 (Hold).

In terms of valuation, McKesson is currently trading at a Forward P/E ratio of 13.82. This valuation marks a discount compared to its industry's average Forward P/E of 20.58.

Investors should also note that MCK has a PEG ratio of 1.33 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Medical - Dental Supplies industry currently had an average PEG ratio of 2.13 as of yesterday's close.

The Medical - Dental Supplies industry is part of the Medical sector. This group has a Zacks Industry Rank of 40, putting it in the top 16% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

To follow MCK in the coming trading sessions, be sure to utilize Zacks.com.


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