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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 $530.27 in the latest trading session, marking a -0.16% move from the prior day. This change lagged the S&P 500's 0.91% gain on the day. At the same time, the Dow added 0.85%, and the tech-heavy Nasdaq gained 1.51%.
The prescription drug distributor's stock has dropped by 1.66% in the past month, exceeding the Medical sector's loss of 2.73% and the S&P 500's loss of 4.2%.
Market participants will be closely following the financial results of McKesson in its upcoming release. The company plans to announce its earnings on May 7, 2024. The company's upcoming EPS is projected at $6.34, signifying a 11.82% drop compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $78.72 billion, up 14.23% from the prior-year quarter.
It is also important to note the recent changes to analyst estimates for McKesson. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.16% increase. At present, McKesson boasts a Zacks Rank of #3 (Hold).
Investors should also note McKesson's current valuation metrics, including its Forward P/E ratio of 17.1. This represents a discount compared to its industry's average Forward P/E of 17.58.
One should further note that MCK currently holds a PEG ratio of 1.41. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Medical - Dental Supplies industry held an average PEG ratio of 1.7.
The Medical - Dental Supplies industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 156, finds itself in the bottom 39% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow MCK in the coming trading sessions, be sure to utilize Zacks.com.
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McKesson (MCK) Stock Sinks As Market Gains: What You Should Know
McKesson (MCK - Free Report) closed at $530.27 in the latest trading session, marking a -0.16% move from the prior day. This change lagged the S&P 500's 0.91% gain on the day. At the same time, the Dow added 0.85%, and the tech-heavy Nasdaq gained 1.51%.
The prescription drug distributor's stock has dropped by 1.66% in the past month, exceeding the Medical sector's loss of 2.73% and the S&P 500's loss of 4.2%.
Market participants will be closely following the financial results of McKesson in its upcoming release. The company plans to announce its earnings on May 7, 2024. The company's upcoming EPS is projected at $6.34, signifying a 11.82% drop compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $78.72 billion, up 14.23% from the prior-year quarter.
It is also important to note the recent changes to analyst estimates for McKesson. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.16% increase. At present, McKesson boasts a Zacks Rank of #3 (Hold).
Investors should also note McKesson's current valuation metrics, including its Forward P/E ratio of 17.1. This represents a discount compared to its industry's average Forward P/E of 17.58.
One should further note that MCK currently holds a PEG ratio of 1.41. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Medical - Dental Supplies industry held an average PEG ratio of 1.7.
The Medical - Dental Supplies industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 156, finds itself in the bottom 39% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow MCK in the coming trading sessions, be sure to utilize Zacks.com.