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McKesson (MCK) Gains As Market Dips: What You Should Know

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McKesson (MCK - Free Report) closed the most recent trading day at $499.34, moving +0.03% from the previous trading session. The stock's change was more than the S&P 500's daily loss of 0.33%. Meanwhile, the Dow experienced a drop of 0.22%, and the technology-dominated Nasdaq saw a decrease of 0.56%.

Prior to today's trading, shares of the prescription drug distributor had gained 0.14% over the past month. This has outpaced the Medical sector's loss of 4.31% and lagged the S&P 500's gain of 1.83% in that time.

The upcoming earnings release of McKesson will be of great interest to investors. The company's earnings report is expected on November 6, 2024. In that report, analysts expect McKesson to post earnings of $6.89 per share. This would mark year-over-year growth of 10.59%. Simultaneously, our latest consensus estimate expects the revenue to be $89.48 billion, showing a 15.89% escalation compared to the year-ago quarter.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $31.92 per share and a revenue of $353.06 billion, representing changes of +16.33% and +14.28%, respectively, from the prior year.

Any recent changes to analyst estimates for McKesson should also be noted by investors. Recent revisions tend to reflect the latest 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. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 0.48% lower. McKesson is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, McKesson currently has a Forward P/E ratio of 15.64. For comparison, its industry has an average Forward P/E of 16.61, which means McKesson is trading at a discount to the group.

Investors should also note that MCK has a PEG ratio of 1.17 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Medical - Dental Supplies industry had an average PEG ratio of 1.88 as trading concluded yesterday.

The Medical - Dental Supplies industry is part of the Medical sector. This group has a Zacks Industry Rank of 102, putting it in the top 41% 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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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