McKesson (MCK) closed the most recent trading day at $585.08, moving +0.57% from the previous trading session. The stock exceeded the S&P 500, which registered a gain of 0.16% for the day. Meanwhile, the Dow gained 0.86%, and the Nasdaq, a tech-heavy index, lost 0.38%.

The prescription drug distributor's shares have seen an increase of 0.95% over the last month, surpassing the Medical sector's loss of 5.3% and the S&P 500's loss of 2.2%.

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 February 5, 2025. The company is forecasted to report an EPS of $8.28, showcasing a 6.98% upward movement from the corresponding quarter of the prior 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 annual period, the Zacks Consensus Estimates anticipate earnings of $32.73 per share and a revenue of $358.91 billion, signifying shifts of +19.28% and +16.17%, respectively, from the last year.

Investors might also notice recent changes to analyst estimates for McKesson. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

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 past month, the Zacks Consensus EPS estimate remained stagnant. McKesson is currently a Zacks Rank #3 (Hold).

Digging into valuation, McKesson currently has a Forward P/E ratio of 17.78. This represents a discount compared to its industry's average Forward P/E of 18.04.

It is also worth noting that MCK currently has a PEG ratio of 1.26. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Medical - Dental Supplies industry was having an average PEG ratio of 1.94.

The Medical - Dental Supplies industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 61, placing it within the top 25% of over 250 industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within 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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