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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 $880.50, moving -1.2% from the previous trading session. This change lagged the S&P 500's daily loss of 0.76%. Meanwhile, the Dow experienced a drop of 0.68%, and the technology-dominated Nasdaq saw a decrease of 1.13%.
The stock of prescription drug distributor has fallen by 1.53% in the past month, leading the Medical sector's loss of 3.03% and undershooting the S&P 500's gain of 1.26%.
The investment community will be paying close attention to the earnings performance of McKesson in its upcoming release. On that day, McKesson is projected to report earnings of $10.72 per share, which would represent year-over-year growth of 8.72%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $110.14 billion, up 6.78% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $44.64 per share and a revenue of $429.09 billion, demonstrating changes of +14.14% and +6.36%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for McKesson. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.02% lower. As of now, McKesson holds a Zacks Rank of #3 (Hold).
Investors should also note McKesson's current valuation metrics, including its Forward P/E ratio of 19.96. This valuation marks a premium compared to its industry average Forward P/E of 17.01.
Also, we should mention that MCK has a PEG ratio of 1.77. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Medical - Dental Supplies industry had an average PEG ratio of 1.95.
The Medical - Dental Supplies industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 104, placing it within the top 43% of over 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.
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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Why McKesson (MCK) Dipped More Than Broader Market Today
McKesson (MCK - Free Report) closed the most recent trading day at $880.50, moving -1.2% from the previous trading session. This change lagged the S&P 500's daily loss of 0.76%. Meanwhile, the Dow experienced a drop of 0.68%, and the technology-dominated Nasdaq saw a decrease of 1.13%.
The stock of prescription drug distributor has fallen by 1.53% in the past month, leading the Medical sector's loss of 3.03% and undershooting the S&P 500's gain of 1.26%.
The investment community will be paying close attention to the earnings performance of McKesson in its upcoming release. On that day, McKesson is projected to report earnings of $10.72 per share, which would represent year-over-year growth of 8.72%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $110.14 billion, up 6.78% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $44.64 per share and a revenue of $429.09 billion, demonstrating changes of +14.14% and +6.36%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for McKesson. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.02% lower. As of now, McKesson holds a Zacks Rank of #3 (Hold).
Investors should also note McKesson's current valuation metrics, including its Forward P/E ratio of 19.96. This valuation marks a premium compared to its industry average Forward P/E of 17.01.
Also, we should mention that MCK has a PEG ratio of 1.77. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Medical - Dental Supplies industry had an average PEG ratio of 1.95.
The Medical - Dental Supplies industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 104, placing it within the top 43% of over 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.
You can find more information on all of these metrics, and much more, on Zacks.com.