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McKesson (MCK) Gains As Market Dips: What You Should Know
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McKesson (MCK - Free Report) closed the most recent trading day at $300.02, moving +0.03% from the previous trading session. This move outpaced the S&P 500's daily loss of 1.23%. Meanwhile, the Dow lost 1.29%, and the Nasdaq, a tech-heavy index, lost 0.14%.
Coming into today, shares of the prescription drug distributor had gained 11.49% in the past month. In that same time, the Medical sector gained 6.66%, while the S&P 500 gained 5.04%.
McKesson will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $6.07, up 20.2% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $63.89 billion, up 8.03% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $23.92 per share and revenue of $261.47 billion, which would represent changes of +38.99% and +9.75%, respectively, from the prior 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. McKesson is holding a Zacks Rank of #2 (Buy) right now.
Digging into valuation, McKesson currently has a Forward P/E ratio of 12.54. Its industry sports an average Forward P/E of 20.54, 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 1.06. 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 Medical - Dental Supplies was holding an average PEG ratio of 2.41 at yesterday's closing price.
The Medical - Dental Supplies industry is part of the Medical sector. This group has a Zacks Industry Rank of 107, putting it in the top 43% 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 the most recent trading day at $300.02, moving +0.03% from the previous trading session. This move outpaced the S&P 500's daily loss of 1.23%. Meanwhile, the Dow lost 1.29%, and the Nasdaq, a tech-heavy index, lost 0.14%.
Coming into today, shares of the prescription drug distributor had gained 11.49% in the past month. In that same time, the Medical sector gained 6.66%, while the S&P 500 gained 5.04%.
McKesson will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $6.07, up 20.2% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $63.89 billion, up 8.03% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $23.92 per share and revenue of $261.47 billion, which would represent changes of +38.99% and +9.75%, respectively, from the prior 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. McKesson is holding a Zacks Rank of #2 (Buy) right now.
Digging into valuation, McKesson currently has a Forward P/E ratio of 12.54. Its industry sports an average Forward P/E of 20.54, 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 1.06. 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 Medical - Dental Supplies was holding an average PEG ratio of 2.41 at yesterday's closing price.
The Medical - Dental Supplies industry is part of the Medical sector. This group has a Zacks Industry Rank of 107, putting it in the top 43% 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.