In the latest trading session, McKesson (MCK) closed at $652.83, marking a -1.38% move from the previous day. The stock's change was more than the S&P 500's daily loss of 1.57%. At the same time, the Dow lost 0.84%, and the tech-heavy Nasdaq lost 2.15%.
Shares of the prescription drug distributor have appreciated by 0.48% over the course of the past month, outperforming the Medical sector's loss of 12.86% and the S&P 500's loss of 12.16%.
The investment community will be closely monitoring the performance of McKesson in its forthcoming earnings report. The company is scheduled to release its earnings on May 8, 2025. The company's upcoming EPS is projected at $9.81, signifying a 58.74% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $93.7 billion, indicating a 22.72% increase compared to the same quarter of the previous year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for McKesson. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection has moved 0.26% lower. Right now, McKesson possesses a Zacks Rank of #3 (Hold).
From a valuation perspective, McKesson is currently exchanging hands at a Forward P/E ratio of 18.1. This expresses a premium compared to the average Forward P/E of 15.59 of its industry.
Investors should also note that MCK has a PEG ratio of 1.28 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 average PEG ratio for the Medical - Dental Supplies industry stood at 1.65 at the close of the market yesterday.
The Medical - Dental Supplies industry is part of the Medical sector. This group has a Zacks Industry Rank of 82, putting it in the top 34% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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This article originally published on Zacks Investment Research (zacks.com).
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