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McKesson (MCK) Stock Moves -0.17%: What You Should Know

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McKesson (MCK - Free Report) closed the latest trading day at $508.32, indicating a -0.17% change from the previous session's end. This change was narrower than the S&P 500's daily loss of 0.18%. Elsewhere, the Dow lost 0.8%, while the tech-heavy Nasdaq added 0.27%.

The the stock of prescription drug distributor has risen by 0.24% in the past month, leading the Medical sector's loss of 3.03% and undershooting the S&P 500's gain of 4.46%.

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 November 6, 2024. The company is expected to report EPS of $6.99, up 12.2% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $89.48 billion, indicating a 15.89% increase compared to the same quarter of the previous year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $31.98 per share and a revenue of $353.04 billion, representing changes of +16.55% and +14.27%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for McKesson. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.29% decrease. McKesson presently features a Zacks Rank of #3 (Hold).

With respect to valuation, McKesson is currently being traded at a Forward P/E ratio of 15.93. This denotes a discount relative to the industry's average Forward P/E of 17.06.

Investors should also note that MCK has a PEG ratio of 1.19 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Medical - Dental Supplies was holding an average PEG ratio of 1.83 at yesterday's closing price.

The Medical - Dental Supplies industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 163, finds itself in the bottom 36% echelons of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow MCK in the coming trading sessions, be sure to utilize Zacks.com.


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