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McKesson (MCK) Stock Slides as Market Rises: Facts to Know Before You Trade

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In the latest trading session, McKesson (MCK - Free Report) closed at $508.16, marking a -0.68% move from the previous day. This change lagged the S&P 500's 1.7% gain on the day. On the other hand, the Dow registered a gain of 1.26%, and the technology-centric Nasdaq increased by 2.51%.

The the stock of prescription drug distributor has fallen by 8.35% in the past month, lagging the Medical sector's gain of 1.53% and the S&P 500's gain of 1.27%.

The upcoming earnings release of McKesson will be of great interest to investors. On that day, McKesson is projected to report earnings of $7.11 per share, which would represent year-over-year growth of 14.13%. Our most recent consensus estimate is calling for quarterly revenue of $89.57 billion, up 16% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $32.06 per share and a revenue of $353.29 billion, indicating changes of +16.84% and +14.35%, respectively, from the former year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for McKesson. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.93% higher. As of now, McKesson holds a Zacks Rank of #3 (Hold).

Looking at its valuation, McKesson is holding a Forward P/E ratio of 15.96. This denotes a discount relative to the industry's average Forward P/E of 18.37.

It's also important to note that MCK currently trades at a PEG ratio of 1.19. 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 1.89 as of yesterday's close.

The Medical - Dental Supplies industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 171, positioning it in the bottom 33% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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