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McKesson (MCK) Sees a More Significant Dip Than Broader Market: Some Facts to Know
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In the latest close session, McKesson (MCK - Free Report) was down 1.36% at $887.29. The stock trailed the S&P 500, which registered a daily loss of 0.45%. Elsewhere, the Dow lost 1.21%, while the tech-heavy Nasdaq lost 0.01%.
The prescription drug distributor's stock has climbed by 3.49% in the past month, exceeding the Medical sector's loss of 0.29% and the S&P 500's loss of 2.43%.
The investment community will be closely monitoring the performance of McKesson in its forthcoming earnings report. The company is forecasted to report an EPS of $10.75, showcasing a 9.03% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $110.14 billion, up 6.78% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $44.65 per share and revenue of $429.09 billion. These totals would mark changes of +14.17% and +6.36%, 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. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
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, 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. Within the past 30 days, our consensus EPS projection has moved 0% lower. As of now, McKesson holds a Zacks Rank of #3 (Hold).
With respect to valuation, McKesson is currently being traded at a Forward P/E ratio of 20.15. This valuation marks a premium compared to its industry average Forward P/E of 17.44.
One should further note that MCK currently holds a PEG ratio of 1.79. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Medical - Dental Supplies industry had an average PEG ratio of 1.92 as trading concluded yesterday.
The Medical - Dental Supplies industry is part of the Medical sector. With its current Zacks Industry Rank of 77, this industry ranks in the top 32% of all industries, numbering over 250.
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.
You can find more information on all of these metrics, and much more, on Zacks.com.
View the Zacks #1 Rank List
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McKesson (MCK) Sees a More Significant Dip Than Broader Market: Some Facts to Know
In the latest close session, McKesson (MCK - Free Report) was down 1.36% at $887.29. The stock trailed the S&P 500, which registered a daily loss of 0.45%. Elsewhere, the Dow lost 1.21%, while the tech-heavy Nasdaq lost 0.01%.
The prescription drug distributor's stock has climbed by 3.49% in the past month, exceeding the Medical sector's loss of 0.29% and the S&P 500's loss of 2.43%.
The investment community will be closely monitoring the performance of McKesson in its forthcoming earnings report. The company is forecasted to report an EPS of $10.75, showcasing a 9.03% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $110.14 billion, up 6.78% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $44.65 per share and revenue of $429.09 billion. These totals would mark changes of +14.17% and +6.36%, 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. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
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, 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. Within the past 30 days, our consensus EPS projection has moved 0% lower. As of now, McKesson holds a Zacks Rank of #3 (Hold).
With respect to valuation, McKesson is currently being traded at a Forward P/E ratio of 20.15. This valuation marks a premium compared to its industry average Forward P/E of 17.44.
One should further note that MCK currently holds a PEG ratio of 1.79. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Medical - Dental Supplies industry had an average PEG ratio of 1.92 as trading concluded yesterday.
The Medical - Dental Supplies industry is part of the Medical sector. With its current Zacks Industry Rank of 77, this industry ranks in the top 32% of all industries, numbering over 250.
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.
You can find more information on all of these metrics, and much more, on Zacks.com.