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McKesson (MCK) Gains As Market Dips: What You Should Know

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In the latest trading session, McKesson (MCK - Free Report) closed at $311.05, marking a +0.54% move from the previous day. This move outpaced the S&P 500's daily loss of 0.13%. Elsewhere, the Dow lost 0.15%, while the tech-heavy Nasdaq added 0.14%.

Prior to today's trading, shares of the prescription drug distributor had lost 5.91% over the past month. This has lagged the Medical sector's loss of 5.23% and the S&P 500's loss of 3.32% in that time.

Wall Street will be looking for positivity from McKesson as it approaches its next earnings report date. The company is expected to report EPS of $5.29, down 4.86% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $63.87 billion, up 1.91% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $23.25 per share and revenue of $264.78 billion, which would represent changes of -1.86% and +0.31%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for McKesson. Recent revisions tend to reflect the latest near-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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.23% higher within the past month. McKesson currently has a Zacks Rank of #3 (Hold).

Investors should also note McKesson's current valuation metrics, including its Forward P/E ratio of 13.31. This represents a discount compared to its industry's average Forward P/E of 18.1.

Also, we should mention that MCK has a PEG ratio of 1.41. 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. Medical - Dental Supplies stocks are, on average, holding a PEG ratio of 2.07 based on yesterday's closing prices.

The Medical - Dental Supplies industry is part of the Medical sector. This group has a Zacks Industry Rank of 236, putting it in the bottom 7% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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