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McKesson (MCK) Exceeds Market Returns: Some Facts to Consider
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The most recent trading session ended with McKesson (MCK - Free Report) standing at $518.81, reflecting a +1.49% shift from the previouse trading day's closing. The stock outpaced the S&P 500's daily gain of 0.54%. Meanwhile, the Dow experienced a rise of 0.72%, and the technology-dominated Nasdaq saw an increase of 0.65%.
Heading into today, shares of the prescription drug distributor had lost 6.28% over the past month, lagging the Medical sector's gain of 4.37% and the S&P 500's gain of 4.86% in that time.
Investors will be eagerly watching for the performance of McKesson in its upcoming earnings disclosure. The company is expected to report EPS of $7.20, up 15.57% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $89.57 billion, up 16% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $32.11 per share and a revenue of $353.29 billion, signifying shifts of +17.02% and +14.35%, respectively, from the last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for McKesson. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 2.25% higher. McKesson is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, McKesson is presently being traded at a Forward P/E ratio of 15.92. This expresses a discount compared to the average Forward P/E of 18.64 of its industry.
It's also important to note that MCK currently trades at a PEG ratio of 1.18. 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. The Medical - Dental Supplies industry had an average PEG ratio of 1.91 as trading concluded yesterday.
The Medical - Dental Supplies industry is part of the Medical sector. This group has a Zacks Industry Rank of 201, putting it in the bottom 21% of all 250+ industries.
The Zacks Industry Rank is ordered 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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McKesson (MCK) Exceeds Market Returns: Some Facts to Consider
The most recent trading session ended with McKesson (MCK - Free Report) standing at $518.81, reflecting a +1.49% shift from the previouse trading day's closing. The stock outpaced the S&P 500's daily gain of 0.54%. Meanwhile, the Dow experienced a rise of 0.72%, and the technology-dominated Nasdaq saw an increase of 0.65%.
Heading into today, shares of the prescription drug distributor had lost 6.28% over the past month, lagging the Medical sector's gain of 4.37% and the S&P 500's gain of 4.86% in that time.
Investors will be eagerly watching for the performance of McKesson in its upcoming earnings disclosure. The company is expected to report EPS of $7.20, up 15.57% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $89.57 billion, up 16% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $32.11 per share and a revenue of $353.29 billion, signifying shifts of +17.02% and +14.35%, respectively, from the last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for McKesson. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 2.25% higher. McKesson is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, McKesson is presently being traded at a Forward P/E ratio of 15.92. This expresses a discount compared to the average Forward P/E of 18.64 of its industry.
It's also important to note that MCK currently trades at a PEG ratio of 1.18. 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. The Medical - Dental Supplies industry had an average PEG ratio of 1.91 as trading concluded yesterday.
The Medical - Dental Supplies industry is part of the Medical sector. This group has a Zacks Industry Rank of 201, putting it in the bottom 21% of all 250+ industries.
The Zacks Industry Rank is ordered 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.