The latest trading session saw McKesson (MCK) ending at $594.75, denoting a -1.63% adjustment from its last day's close. The stock's performance was behind the S&P 500's daily loss of 0.51%. On the other hand, the Dow registered a loss of 0.75%, and the technology-centric Nasdaq decreased by 0.28%.

The the stock of prescription drug distributor has risen by 6.78% in the past month, lagging the Medical sector's gain of 7.83% and overreaching the S&P 500's gain of 2.87%.

The investment community will be paying close attention to the earnings performance of McKesson in its upcoming release. The company is slated to reveal its earnings on February 5, 2025. In that report, analysts expect McKesson to post earnings of $8.11 per share. This would mark year-over-year growth of 4.78%. Our most recent consensus estimate is calling for quarterly revenue of $95.46 billion, up 18% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $32.72 per share and a revenue of $358.91 billion, demonstrating changes of +19.24% and +16.17%, respectively, from the preceding year.

Investors might also notice recent changes to analyst estimates for McKesson. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.02% fall in the Zacks Consensus EPS estimate. McKesson presently features a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that McKesson has a Forward P/E ratio of 18.48 right now. This signifies no noticeable deviation in comparison to the average Forward P/E of 18.48 for its industry.

Also, we should mention that MCK has a PEG ratio of 1.31. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Medical - Dental Supplies industry currently had an average PEG ratio of 2.21 as of yesterday's close.

The Medical - Dental Supplies industry is part of the Medical sector. With its current Zacks Industry Rank of 153, this industry ranks in the bottom 40% of all industries, numbering over 250.

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.

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

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