We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
McKesson (MCK) Stock Sinks As Market Gains: What You Should Know
Read MoreHide Full Article
In the latest trading session, McKesson (MCK - Free Report) closed at $317.31, marking a -0.27% move from the previous day. This change lagged the S&P 500's 0.57% gain on the day. At the same time, the Dow added 0.7%, and the tech-heavy Nasdaq gained 0.08%.
Prior to today's trading, shares of the prescription drug distributor had gained 2.48% over the past month. This has outpaced the Medical sector's loss of 3.69% and the S&P 500's loss of 5.26% in that time.
McKesson will be looking to display strength as it nears its next earnings release, which is expected to be May 5, 2022. The company is expected to report EPS of $6.06, up 20% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $63.72 billion, up 7.74% from the prior-year quarter.
Investors might also notice recent changes to analyst estimates for McKesson. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.09% lower. McKesson is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that McKesson has a Forward P/E ratio of 14.04 right now. For comparison, its industry has an average Forward P/E of 18.99, which means McKesson is trading at a discount to the group.
Investors should also note that MCK has a PEG ratio of 1.18 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Medical - Dental Supplies was holding an average PEG ratio of 2.42 at yesterday's closing price.
The Medical - Dental Supplies industry is part of the Medical sector. This group has a Zacks Industry Rank of 97, putting it in the top 39% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
McKesson (MCK) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, McKesson (MCK - Free Report) closed at $317.31, marking a -0.27% move from the previous day. This change lagged the S&P 500's 0.57% gain on the day. At the same time, the Dow added 0.7%, and the tech-heavy Nasdaq gained 0.08%.
Prior to today's trading, shares of the prescription drug distributor had gained 2.48% over the past month. This has outpaced the Medical sector's loss of 3.69% and the S&P 500's loss of 5.26% in that time.
McKesson will be looking to display strength as it nears its next earnings release, which is expected to be May 5, 2022. The company is expected to report EPS of $6.06, up 20% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $63.72 billion, up 7.74% from the prior-year quarter.
Investors might also notice recent changes to analyst estimates for McKesson. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.09% lower. McKesson is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that McKesson has a Forward P/E ratio of 14.04 right now. For comparison, its industry has an average Forward P/E of 18.99, which means McKesson is trading at a discount to the group.
Investors should also note that MCK has a PEG ratio of 1.18 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Medical - Dental Supplies was holding an average PEG ratio of 2.42 at yesterday's closing price.
The Medical - Dental Supplies industry is part of the Medical sector. This group has a Zacks Industry Rank of 97, putting it in the top 39% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.