In the latest trading session, McKesson (MCK) closed at $586.08, marking a -1.1% move from the previous day. The stock's performance was behind the S&P 500's daily gain of 0.88%. Meanwhile, the Dow experienced a rise of 1.24%, and the technology-dominated Nasdaq saw an increase of 0.65%.

The the stock of prescription drug distributor has risen by 2.74% in the past month, leading the Medical sector's loss of 0.32% and the S&P 500's gain of 1.17%.

The upcoming earnings release of McKesson will be of great interest to investors. The company's earnings report is expected 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. In the meantime, our current consensus estimate forecasts the revenue to be $95.46 billion, indicating a 18% growth compared to the corresponding quarter of the prior year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $32.73 per share and a revenue of $358.91 billion, representing changes of +19.28% and +16.17%, respectively, from the prior year.

Any recent changes to analyst estimates for McKesson should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. McKesson is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that McKesson has a Forward P/E ratio of 18.11 right now. This indicates no noticeable deviation in contrast to its industry's Forward P/E of 18.11.

One should further note that MCK currently holds a PEG ratio of 1.28. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Medical - Dental Supplies industry stood at 2 at the close of the market yesterday.

The Medical - Dental Supplies industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 150, placing it within the bottom 41% of over 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.

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