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McKesson (MCK) Stock Sinks As Market Gains: What You Should Know
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McKesson (MCK - Free Report) closed at $391.25 in the latest trading session, marking a -1.45% move from the prior day. This move lagged the S&P 500's daily gain of 0.08%. Elsewhere, the Dow lost 0.68%, while the tech-heavy Nasdaq lost 0.61%.
Prior to today's trading, shares of the prescription drug distributor had gained 0.24% over the past month. This has outpaced the Medical sector's loss of 0.75% and lagged the S&P 500's gain of 6.1% in that time.
Wall Street will be looking for positivity from McKesson as it approaches its next earnings report date. The company is expected to report EPS of $5.85, up 0.34% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $69.56 billion, up 3.58% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $26.56 per share and revenue of $294.4 billion, which would represent changes of +2.39% and +6.39%, respectively, from the prior 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. 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. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.2% lower. McKesson is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, McKesson is holding a Forward P/E ratio of 14.95. This valuation marks a discount compared to its industry's average Forward P/E of 21.84.
It is also worth noting that MCK currently has a PEG ratio of 1.38. 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. Medical - Dental Supplies stocks are, on average, holding a PEG ratio of 2.1 based on yesterday's closing prices.
The Medical - Dental Supplies industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 65, which puts it in the top 26% 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.
To follow MCK in the coming trading sessions, be sure to utilize Zacks.com.
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McKesson (MCK) Stock Sinks As Market Gains: What You Should Know
McKesson (MCK - Free Report) closed at $391.25 in the latest trading session, marking a -1.45% move from the prior day. This move lagged the S&P 500's daily gain of 0.08%. Elsewhere, the Dow lost 0.68%, while the tech-heavy Nasdaq lost 0.61%.
Prior to today's trading, shares of the prescription drug distributor had gained 0.24% over the past month. This has outpaced the Medical sector's loss of 0.75% and lagged the S&P 500's gain of 6.1% in that time.
Wall Street will be looking for positivity from McKesson as it approaches its next earnings report date. The company is expected to report EPS of $5.85, up 0.34% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $69.56 billion, up 3.58% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $26.56 per share and revenue of $294.4 billion, which would represent changes of +2.39% and +6.39%, respectively, from the prior 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. 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. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.2% lower. McKesson is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, McKesson is holding a Forward P/E ratio of 14.95. This valuation marks a discount compared to its industry's average Forward P/E of 21.84.
It is also worth noting that MCK currently has a PEG ratio of 1.38. 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. Medical - Dental Supplies stocks are, on average, holding a PEG ratio of 2.1 based on yesterday's closing prices.
The Medical - Dental Supplies industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 65, which puts it in the top 26% 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.
To follow MCK in the coming trading sessions, be sure to utilize Zacks.com.