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McKesson (MCK) Increases Despite Market Slip: Here's What You Need to Know
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McKesson (MCK - Free Report) closed the latest trading day at $585.74, indicating a +0.47% change from the previous session's end. The stock exceeded the S&P 500, which registered a loss of 0.16% for the day. Meanwhile, the Dow lost 0.14%, and the Nasdaq, a tech-heavy index, lost 0.06%.
The prescription drug distributor's shares have seen a decrease of 4.08% over the last month, not keeping up with the Medical sector's gain of 0.37% and the S&P 500's gain of 1.96%.
The investment community will be paying close attention to the earnings performance of McKesson in its upcoming release. The company is slated to reveal its earnings on August 7, 2024. The company is forecasted to report an EPS of $7.17, showcasing a 1.38% downward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $83.36 billion, indicating a 11.92% growth compared to the corresponding quarter of the prior year.
MCK's full-year Zacks Consensus Estimates are calling for earnings of $31.59 per share and revenue of $360.25 billion. These results would represent year-over-year changes of +15.12% and +16.6%, respectively.
Investors should also pay attention to any latest changes in analyst estimates for McKesson. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.42% higher. As of now, McKesson holds a Zacks Rank of #3 (Hold).
Looking at its valuation, McKesson is holding a Forward P/E ratio of 18.45. This signifies a premium in comparison to the average Forward P/E of 18.09 for its industry.
It's also important to note that MCK currently trades at a PEG ratio of 1.36. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Medical - Dental Supplies industry currently had an average PEG ratio of 2.02 as of yesterday's close.
The Medical - Dental Supplies industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 160, finds itself in the bottom 37% echelons 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.
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McKesson (MCK) Increases Despite Market Slip: Here's What You Need to Know
McKesson (MCK - Free Report) closed the latest trading day at $585.74, indicating a +0.47% change from the previous session's end. The stock exceeded the S&P 500, which registered a loss of 0.16% for the day. Meanwhile, the Dow lost 0.14%, and the Nasdaq, a tech-heavy index, lost 0.06%.
The prescription drug distributor's shares have seen a decrease of 4.08% over the last month, not keeping up with the Medical sector's gain of 0.37% and the S&P 500's gain of 1.96%.
The investment community will be paying close attention to the earnings performance of McKesson in its upcoming release. The company is slated to reveal its earnings on August 7, 2024. The company is forecasted to report an EPS of $7.17, showcasing a 1.38% downward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $83.36 billion, indicating a 11.92% growth compared to the corresponding quarter of the prior year.
MCK's full-year Zacks Consensus Estimates are calling for earnings of $31.59 per share and revenue of $360.25 billion. These results would represent year-over-year changes of +15.12% and +16.6%, respectively.
Investors should also pay attention to any latest changes in analyst estimates for McKesson. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.42% higher. As of now, McKesson holds a Zacks Rank of #3 (Hold).
Looking at its valuation, McKesson is holding a Forward P/E ratio of 18.45. This signifies a premium in comparison to the average Forward P/E of 18.09 for its industry.
It's also important to note that MCK currently trades at a PEG ratio of 1.36. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Medical - Dental Supplies industry currently had an average PEG ratio of 2.02 as of yesterday's close.
The Medical - Dental Supplies industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 160, finds itself in the bottom 37% echelons 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.