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McKesson Corporation (MCK) Hit a 52 Week High, Can the Run Continue?
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Have you been paying attention to shares of McKesson (MCK - Free Report) ? Shares have been on the move with the stock up 15.2% over the past month. The stock hit a new 52-week high of $1121.5 in the previous session. McKesson has gained 30.7% since the start of the year compared to the 8.3% move for the Zacks Medical sector and the 19.8% return for the Zacks Medical - Dental Supplies industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on November 4, 2026, McKesson reported EPS of $11.68 versus consensus estimate of $10.69.
For the current fiscal year, McKesson is expected to post earnings of $45.26 per share on $433.87 in revenues. This represents a 15.72% change in EPS on a 7.55% change in revenues. For the next fiscal year, the company is expected to earn $50.82 per share on $461.3 in revenues. This represents a year-over-year change of 12.29% and 6.32%, respectively.
Valuation Metrics
McKesson may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
McKesson has a Value Score of B. The stock's Growth and Momentum Scores are A and F, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 23.7X current fiscal year EPS estimates, which is a premium to the peer industry average of 18X. On a trailing cash flow basis, the stock currently trades at 23.5X versus its peer group's average of 12.2X. Additionally, the stock has a PEG ratio of 2.11. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, McKesson currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if McKesson passes the test. Thus, it seems as though McKesson shares could have potential in the weeks and months to come.
View the Zacks #1 Rank List
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McKesson Corporation (MCK) Hit a 52 Week High, Can the Run Continue?
Have you been paying attention to shares of McKesson (MCK - Free Report) ? Shares have been on the move with the stock up 15.2% over the past month. The stock hit a new 52-week high of $1121.5 in the previous session. McKesson has gained 30.7% since the start of the year compared to the 8.3% move for the Zacks Medical sector and the 19.8% return for the Zacks Medical - Dental Supplies industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on November 4, 2026, McKesson reported EPS of $11.68 versus consensus estimate of $10.69.
For the current fiscal year, McKesson is expected to post earnings of $45.26 per share on $433.87 in revenues. This represents a 15.72% change in EPS on a 7.55% change in revenues. For the next fiscal year, the company is expected to earn $50.82 per share on $461.3 in revenues. This represents a year-over-year change of 12.29% and 6.32%, respectively.
Valuation Metrics
McKesson may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
McKesson has a Value Score of B. The stock's Growth and Momentum Scores are A and F, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 23.7X current fiscal year EPS estimates, which is a premium to the peer industry average of 18X. On a trailing cash flow basis, the stock currently trades at 23.5X versus its peer group's average of 12.2X. Additionally, the stock has a PEG ratio of 2.11. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, McKesson currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if McKesson passes the test. Thus, it seems as though McKesson shares could have potential in the weeks and months to come.