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Why McKesson (MCK) Dipped More Than Broader Market Today

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McKesson (MCK - Free Report) closed the most recent trading day at $693.54, moving -2.99% from the previous trading session. The stock's change was less than the S&P 500's daily loss of 0.37%. Meanwhile, the Dow experienced a drop of 0.74%, and the technology-dominated Nasdaq saw a decrease of 0.03%.

Shares of the prescription drug distributor have appreciated by 1.34% over the course of the past month, outperforming the Medical sector's loss of 0.88%, and lagging the S&P 500's gain of 2.68%.

Market participants will be closely following the financial results of McKesson in its upcoming release. The company plans to announce its earnings on August 6, 2025. In that report, analysts expect McKesson to post earnings of $8.23 per share. This would mark year-over-year growth of 4.44%. In the meantime, our current consensus estimate forecasts the revenue to be $96.08 billion, indicating a 21.18% growth compared to the corresponding quarter of the prior year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $37.26 per share and a revenue of $406.16 billion, signifying shifts of +12.74% and +13.12%, respectively, from the last year.

Investors should also pay attention to any latest changes in analyst estimates for McKesson. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.08% higher. McKesson is currently a Zacks Rank #2 (Buy).

In terms of valuation, McKesson is currently trading at a Forward P/E ratio of 19.19. This signifies a premium in comparison to the average Forward P/E of 17.82 for its industry.

We can also see that MCK currently has a PEG ratio of 1.45. 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. The Medical - Dental Supplies industry had an average PEG ratio of 1.76 as trading concluded yesterday.

The Medical - Dental Supplies industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 29, placing it within the top 12% of over 250 industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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