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McKesson (MCK) Gains As Market Dips: What You Should Know
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McKesson (MCK - Free Report) closed at $359.27 in the latest trading session, marking a +1.05% move from the prior day. This move outpaced the S&P 500's daily loss of 0.6%. Elsewhere, the Dow lost 0.33%, while the tech-heavy Nasdaq lost 2.87%.
Heading into today, shares of the prescription drug distributor had gained 4.02% over the past month, lagging the Medical sector's gain of 6.18% and the S&P 500's gain of 6.22% in that time.
McKesson will be looking to display strength as it nears its next earnings release, which is expected to be May 8, 2023. In that report, analysts expect McKesson to post earnings of $7.13 per share. This would mark year-over-year growth of 22.3%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $67.93 billion, up 2.77% from the year-ago period.
Any recent changes to analyst estimates for McKesson should also be noted by investors. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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. Within the past 30 days, our consensus EPS projection has moved 0.08% lower. McKesson is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that McKesson has a Forward P/E ratio of 13.52 right now. For comparison, its industry has an average Forward P/E of 21.46, which means McKesson is trading at a discount to the group.
It is also worth noting that MCK currently has a PEG ratio of 1.31. 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 2.19 at yesterday's closing price.
The Medical - Dental Supplies industry is part of the Medical sector. This group has a Zacks Industry Rank of 37, putting it in the top 15% 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.
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) Gains As Market Dips: What You Should Know
McKesson (MCK - Free Report) closed at $359.27 in the latest trading session, marking a +1.05% move from the prior day. This move outpaced the S&P 500's daily loss of 0.6%. Elsewhere, the Dow lost 0.33%, while the tech-heavy Nasdaq lost 2.87%.
Heading into today, shares of the prescription drug distributor had gained 4.02% over the past month, lagging the Medical sector's gain of 6.18% and the S&P 500's gain of 6.22% in that time.
McKesson will be looking to display strength as it nears its next earnings release, which is expected to be May 8, 2023. In that report, analysts expect McKesson to post earnings of $7.13 per share. This would mark year-over-year growth of 22.3%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $67.93 billion, up 2.77% from the year-ago period.
Any recent changes to analyst estimates for McKesson should also be noted by investors. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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. Within the past 30 days, our consensus EPS projection has moved 0.08% lower. McKesson is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that McKesson has a Forward P/E ratio of 13.52 right now. For comparison, its industry has an average Forward P/E of 21.46, which means McKesson is trading at a discount to the group.
It is also worth noting that MCK currently has a PEG ratio of 1.31. 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 2.19 at yesterday's closing price.
The Medical - Dental Supplies industry is part of the Medical sector. This group has a Zacks Industry Rank of 37, putting it in the top 15% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.