In the latest market close, McKesson (MCK) reached $585.24, with a +0.83% movement compared to the previous day. The stock's performance was ahead of the S&P 500's daily loss of 1.11%. Elsewhere, the Dow lost 0.42%, while the tech-heavy Nasdaq lost 1.89%.

The the stock of prescription drug distributor has fallen by 1.94% in the past month, leading the Medical sector's loss of 6.22% and undershooting the S&P 500's loss of 1.7%.

Market participants will be closely following the financial results of McKesson in its upcoming release. The company plans to announce its earnings on February 5, 2025. The company's earnings per share (EPS) are projected to be $8.28, reflecting a 6.98% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $95.46 billion, indicating a 18% upward movement from the same quarter last year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $32.73 per share and a revenue of $358.91 billion, indicating changes of +19.28% and +16.17%, respectively, from the former year.

Investors should also note any recent changes to analyst estimates for McKesson. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. McKesson is currently a Zacks Rank #3 (Hold).

In the context of valuation, McKesson is at present trading with a Forward P/E ratio of 17.74. This expresses no noticeable deviation compared to the average Forward P/E of 17.74 of its industry.

Investors should also note that MCK has a PEG ratio of 1.25 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Medical - Dental Supplies industry stood at 1.98 at the close of the market yesterday.

The Medical - Dental Supplies industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 56, which puts it in the top 23% of all 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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

McKesson Corporation (MCK) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research