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Here's Why McKesson (MCK) Fell More Than Broader Market
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In the latest close session, McKesson (MCK - Free Report) was down 1.79% at $814.04. This change lagged the S&P 500's 0.14% loss on the day. Meanwhile, the Dow experienced a drop of 0.01%, and the technology-dominated Nasdaq saw a decrease of 0.57%.
Heading into today, shares of the prescription drug distributor had gained 8.5% over the past month, outpacing the Medical sector's gain of 5.8% and the S&P 500's gain of 0.25%.
Investors will be eagerly watching for the performance of McKesson in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on August 5, 2026. The company's upcoming EPS is projected at $9.59, signifying a 16.10% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $104.39 billion, up 6.7% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $44.28 per share and revenue of $432.77 billion. These totals would mark changes of +13.22% and +7.27%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for McKesson. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, 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 shifted 0% upward. Currently, McKesson is carrying a Zacks Rank of #2 (Buy).
Looking at its valuation, McKesson is holding a Forward P/E ratio of 18.72. This valuation marks a premium compared to its industry average Forward P/E of 17.11.
It's also important to note that MCK currently trades at a PEG ratio of 1.36. 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. MCK's industry had an average PEG ratio of 1.86 as of yesterday's close.
The Medical - Dental Supplies industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 74, finds itself in the top 31% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
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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Here's Why McKesson (MCK) Fell More Than Broader Market
In the latest close session, McKesson (MCK - Free Report) was down 1.79% at $814.04. This change lagged the S&P 500's 0.14% loss on the day. Meanwhile, the Dow experienced a drop of 0.01%, and the technology-dominated Nasdaq saw a decrease of 0.57%.
Heading into today, shares of the prescription drug distributor had gained 8.5% over the past month, outpacing the Medical sector's gain of 5.8% and the S&P 500's gain of 0.25%.
Investors will be eagerly watching for the performance of McKesson in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on August 5, 2026. The company's upcoming EPS is projected at $9.59, signifying a 16.10% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $104.39 billion, up 6.7% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $44.28 per share and revenue of $432.77 billion. These totals would mark changes of +13.22% and +7.27%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for McKesson. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, 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 shifted 0% upward. Currently, McKesson is carrying a Zacks Rank of #2 (Buy).
Looking at its valuation, McKesson is holding a Forward P/E ratio of 18.72. This valuation marks a premium compared to its industry average Forward P/E of 17.11.
It's also important to note that MCK currently trades at a PEG ratio of 1.36. 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. MCK's industry had an average PEG ratio of 1.86 as of yesterday's close.
The Medical - Dental Supplies industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 74, finds itself in the top 31% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.