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McKesson (MCK) Stock Sinks As Market Gains: What You Should Know
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McKesson (MCK - Free Report) closed at $341.40 in the latest trading session, marking a -1.87% move from the prior day. This change lagged the S&P 500's daily gain of 0.34%. At the same time, the Dow added 0.1%, and the tech-heavy Nasdaq gained 0.02%.
Prior to today's trading, shares of the prescription drug distributor had lost 6.94% over the past month. This has lagged the Medical sector's loss of 5.59% and was narrower than the S&P 500's loss of 7.95% in that time.
McKesson will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $6.12, down 0.49% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $69.31 billion, up 4.11% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $24.25 per share and revenue of $274.54 billion. These totals would mark changes of +2.36% and +4.01%, respectively, from last year.
Any recent changes to analyst estimates for McKesson should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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.
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. Within the past 30 days, our consensus EPS projection has moved 0.11% higher. McKesson is currently a Zacks Rank #2 (Buy).
Looking at its valuation, McKesson is holding a Forward P/E ratio of 14.35. This represents a discount compared to its industry's average Forward P/E of 18.85.
Also, we should mention that MCK has a PEG ratio of 1.43. 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 2.07 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 194, which puts it in the bottom 24% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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McKesson (MCK) Stock Sinks As Market Gains: What You Should Know
McKesson (MCK - Free Report) closed at $341.40 in the latest trading session, marking a -1.87% move from the prior day. This change lagged the S&P 500's daily gain of 0.34%. At the same time, the Dow added 0.1%, and the tech-heavy Nasdaq gained 0.02%.
Prior to today's trading, shares of the prescription drug distributor had lost 6.94% over the past month. This has lagged the Medical sector's loss of 5.59% and was narrower than the S&P 500's loss of 7.95% in that time.
McKesson will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $6.12, down 0.49% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $69.31 billion, up 4.11% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $24.25 per share and revenue of $274.54 billion. These totals would mark changes of +2.36% and +4.01%, respectively, from last year.
Any recent changes to analyst estimates for McKesson should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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.
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. Within the past 30 days, our consensus EPS projection has moved 0.11% higher. McKesson is currently a Zacks Rank #2 (Buy).
Looking at its valuation, McKesson is holding a Forward P/E ratio of 14.35. This represents a discount compared to its industry's average Forward P/E of 18.85.
Also, we should mention that MCK has a PEG ratio of 1.43. 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 2.07 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 194, which puts it in the bottom 24% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.