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McKesson (MCK) Stock Moves -0.32%: What You Should Know

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McKesson (MCK - Free Report) ended the recent trading session at $582.06, demonstrating a -0.32% swing from the preceding day's closing price. The stock's change was more than the S&P 500's daily loss of 1.39%. On the other hand, the Dow registered a gain of 0.6%, and the technology-centric Nasdaq decreased by 2.77%.

Coming into today, shares of the prescription drug distributor had lost 3.15% in the past month. In that same time, the Medical sector gained 1.98%, while the S&P 500 gained 4.43%.

Market participants will be closely following the financial results of McKesson in its upcoming release. The company plans to announce its earnings on August 7, 2024. In that report, analysts expect McKesson to post earnings of $7.17 per share. This would mark a year-over-year decline of 1.38%. Simultaneously, our latest consensus estimate expects the revenue to be $83.36 billion, showing a 11.92% escalation compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates project earnings of $31.59 per share and a revenue of $360.09 billion, demonstrating changes of +15.12% and +16.55%, respectively, from the preceding year.

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 reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.42% increase. McKesson currently has a Zacks Rank of #3 (Hold).

In the context of valuation, McKesson is at present trading with a Forward P/E ratio of 18.49. This signifies a premium in comparison to the average Forward P/E of 18.1 for its industry.

Meanwhile, MCK's PEG ratio is currently 1.36. 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. As of the close of trade yesterday, the Medical - Dental Supplies industry held an average PEG ratio of 2.02.

The Medical - Dental Supplies industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 159, positioning it in the bottom 37% 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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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