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McKesson (MCK) Stock Sinks As Market Gains: Here's Why
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In the latest trading session, McKesson (MCK - Free Report) closed at $750.63, marking a -3.74% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 1.09% for the day. On the other hand, the Dow registered a gain of 0.14%, and the technology-centric Nasdaq increased by 1.91%.
The prescription drug distributor's shares have seen an increase of 3.33% over the last month, surpassing the Medical sector's gain of 3.16% and the S&P 500's gain of 0.29%.
Investors will be eagerly watching for the performance of McKesson in its upcoming earnings disclosure. In that report, analysts expect McKesson to post earnings of $9.63 per share. This would mark year-over-year growth of 16.59%. In the meantime, our current consensus estimate forecasts the revenue to be $104.39 billion, indicating a 6.7% growth compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $44.28 per share and a revenue of $432.83 billion, indicating changes of +13.22% and +7.29%, respectively, from the former year.
Investors should also take note of any recent adjustments to analyst estimates for McKesson. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.03% upward. At present, McKesson boasts a Zacks Rank of #3 (Hold).
With respect to valuation, McKesson is currently being traded at a Forward P/E ratio of 17.61. Its industry sports an average Forward P/E of 15.32, so one might conclude that McKesson is trading at a premium comparatively.
Also, we should mention that MCK has a PEG ratio of 1.28. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Medical - Dental Supplies industry held an average PEG ratio of 1.58.
The Medical - Dental Supplies industry is part of the Medical sector. This group has a Zacks Industry Rank of 75, putting it in the top 31% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
View the Zacks #1 Rank List
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McKesson (MCK) Stock Sinks As Market Gains: Here's Why
In the latest trading session, McKesson (MCK - Free Report) closed at $750.63, marking a -3.74% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 1.09% for the day. On the other hand, the Dow registered a gain of 0.14%, and the technology-centric Nasdaq increased by 1.91%.
The prescription drug distributor's shares have seen an increase of 3.33% over the last month, surpassing the Medical sector's gain of 3.16% and the S&P 500's gain of 0.29%.
Investors will be eagerly watching for the performance of McKesson in its upcoming earnings disclosure. In that report, analysts expect McKesson to post earnings of $9.63 per share. This would mark year-over-year growth of 16.59%. In the meantime, our current consensus estimate forecasts the revenue to be $104.39 billion, indicating a 6.7% growth compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $44.28 per share and a revenue of $432.83 billion, indicating changes of +13.22% and +7.29%, respectively, from the former year.
Investors should also take note of any recent adjustments to analyst estimates for McKesson. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.03% upward. At present, McKesson boasts a Zacks Rank of #3 (Hold).
With respect to valuation, McKesson is currently being traded at a Forward P/E ratio of 17.61. Its industry sports an average Forward P/E of 15.32, so one might conclude that McKesson is trading at a premium comparatively.
Also, we should mention that MCK has a PEG ratio of 1.28. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Medical - Dental Supplies industry held an average PEG ratio of 1.58.
The Medical - Dental Supplies industry is part of the Medical sector. This group has a Zacks Industry Rank of 75, putting it in the top 31% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.