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McKesson (MCK) Gains As Market Dips: What You Should Know
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McKesson (MCK - Free Report) closed at $361 in the latest trading session, marking a +1.97% move from the prior day. This change outpaced the S&P 500's 1.16% loss on the day. Elsewhere, the Dow lost 1.08%, while the tech-heavy Nasdaq lost 7.95%.
Heading into today, shares of the prescription drug distributor had lost 2.68% over the past month, lagging the Medical sector's gain of 4.52% and the S&P 500's gain of 1.53% in that time.
Wall Street will be looking for positivity from McKesson as it approaches its next earnings report date. This is expected to be May 8, 2023. The company is expected to report EPS of $7.13, up 22.3% 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 should also note any recent changes to analyst estimates for McKesson. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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. Within the past 30 days, our consensus EPS projection has moved 0.08% lower. McKesson is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note McKesson's current valuation metrics, including its Forward P/E ratio of 13.46. For comparison, its industry has an average Forward P/E of 22.21, which means McKesson is trading at a discount to the group.
It is also worth noting that MCK currently has a PEG ratio of 1.3. 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 2.08 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 54, which puts it in the top 22% 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.
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 $361 in the latest trading session, marking a +1.97% move from the prior day. This change outpaced the S&P 500's 1.16% loss on the day. Elsewhere, the Dow lost 1.08%, while the tech-heavy Nasdaq lost 7.95%.
Heading into today, shares of the prescription drug distributor had lost 2.68% over the past month, lagging the Medical sector's gain of 4.52% and the S&P 500's gain of 1.53% in that time.
Wall Street will be looking for positivity from McKesson as it approaches its next earnings report date. This is expected to be May 8, 2023. The company is expected to report EPS of $7.13, up 22.3% 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 should also note any recent changes to analyst estimates for McKesson. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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. Within the past 30 days, our consensus EPS projection has moved 0.08% lower. McKesson is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note McKesson's current valuation metrics, including its Forward P/E ratio of 13.46. For comparison, its industry has an average Forward P/E of 22.21, which means McKesson is trading at a discount to the group.
It is also worth noting that MCK currently has a PEG ratio of 1.3. 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 2.08 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 54, which puts it in the top 22% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.