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McKesson (MCK) Stock Dips While Market Gains: Key Facts

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McKesson (MCK - Free Report) closed the most recent trading day at $967.02, moving -2.6% from the previous trading session. The stock's performance was behind the S&P 500's daily gain of 0.6%. Elsewhere, the Dow gained 0.03%, while the tech-heavy Nasdaq added 1.18%.

Shares of the prescription drug distributor witnessed a gain of 15.95% over the previous month, beating the performance of the Medical sector with its gain of 2.23%, and the S&P 500's loss of 0.79%.

The upcoming earnings release of McKesson will be of great interest to investors. The company's earnings report is expected on November 4, 2026. The company's upcoming EPS is projected at $10.69, signifying a 8.42% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $110.11 billion, showing a 6.75% escalation compared to the year-ago quarter.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $44.71 per share and a revenue of $429.01 billion, indicating changes of +14.32% and +6.34%, respectively, from the former year.

It is also important to note the recent changes to analyst estimates for McKesson. Recent revisions tend to reflect the latest near-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 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, 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. The Zacks Consensus EPS estimate has moved 0.14% higher within the past month. McKesson is currently a Zacks Rank #3 (Hold).

Looking at its valuation, McKesson is holding a Forward P/E ratio of 22.21. This indicates a premium in contrast to its industry's Forward P/E of 17.7.

Also, we should mention that MCK has a PEG ratio of 1.97. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. MCK's industry had an average PEG ratio of 2.1 as of yesterday's close.

The Medical - Dental Supplies industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 159, positioning it in the bottom 36% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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