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McKesson (MCK) Gains As Market Dips: What You Should Know
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McKesson (MCK - Free Report) closed at $284.85 in the latest trading session, marking a +1.29% move from the prior day. This move outpaced the S&P 500's daily loss of 0.74%.
Heading into today, shares of the prescription drug distributor had gained 3.7% over the past month, outpacing the Medical sector's loss of 2.46% and the S&P 500's loss of 4.6% in that time.
Investors will be hoping for strength from McKesson as it approaches its next earnings release. In that report, analysts expect McKesson to post earnings of $6.07 per share. This would mark year-over-year growth of 20.2%. Our most recent consensus estimate is calling for quarterly revenue of $63.89 billion, up 8.03% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $23.92 per share and revenue of $261.47 billion. These totals would mark changes of +38.99% and +9.75%, respectively, from last year.
Any recent changes to analyst estimates for McKesson should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. McKesson is currently a Zacks Rank #2 (Buy).
Investors should also note McKesson's current valuation metrics, including its Forward P/E ratio of 11.76. Its industry sports an average Forward P/E of 19.81, so we one might conclude that McKesson is trading at a discount comparatively.
It is also worth noting that MCK currently has a PEG ratio of 0.99. 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. MCK's industry had an average PEG ratio of 2.27 as of yesterday's close.
The Medical - Dental Supplies industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 111, which puts it in the top 44% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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McKesson (MCK) Gains As Market Dips: What You Should Know
McKesson (MCK - Free Report) closed at $284.85 in the latest trading session, marking a +1.29% move from the prior day. This move outpaced the S&P 500's daily loss of 0.74%.
Heading into today, shares of the prescription drug distributor had gained 3.7% over the past month, outpacing the Medical sector's loss of 2.46% and the S&P 500's loss of 4.6% in that time.
Investors will be hoping for strength from McKesson as it approaches its next earnings release. In that report, analysts expect McKesson to post earnings of $6.07 per share. This would mark year-over-year growth of 20.2%. Our most recent consensus estimate is calling for quarterly revenue of $63.89 billion, up 8.03% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $23.92 per share and revenue of $261.47 billion. These totals would mark changes of +38.99% and +9.75%, respectively, from last year.
Any recent changes to analyst estimates for McKesson should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. McKesson is currently a Zacks Rank #2 (Buy).
Investors should also note McKesson's current valuation metrics, including its Forward P/E ratio of 11.76. Its industry sports an average Forward P/E of 19.81, so we one might conclude that McKesson is trading at a discount comparatively.
It is also worth noting that MCK currently has a PEG ratio of 0.99. 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. MCK's industry had an average PEG ratio of 2.27 as of yesterday's close.
The Medical - Dental Supplies industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 111, which puts it in the top 44% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
You can find more information on all of these metrics, and much more, on Zacks.com.