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Should You Buy McKesson Corporation (MCK) Ahead of Earnings?
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Investors are always looking for stocks that are poised to beat at earnings season and McKesson Corporation (MCK - Free Report) may be one such company. The firm has earnings coming up pretty soon, and events are shaping up quite nicely for their report.
That is because McKesson is seeing favorable earnings estimate revision activity as of late, which is generally a precursor to an earnings beat. After all, analysts raising estimates right before earnings — with the most up-to-date information possible — is a pretty good indicator of some favorable trends underneath the surface for MCK in this report.
In fact, the Most Accurate Estimate for the current quarter is currently at $2.80 per share for MCK, compared to a broader Zacks Consensus Estimate of $2.78 per share. This suggests that analysts have very recently bumped up their estimates for MCK, giving the stock a Zacks Earnings ESP of +0.72% heading into earnings season.
A positive reading for the Zacks Earnings ESP has proven to be very powerful in producing both positive surprises, and outperforming the market. Our recent 10-year backtest shows that stocks that have a positive Earnings ESP and a Zacks Rank #3 (Hold) or better show a positive surprise nearly 70% of the time, and have returned over 28% on average in annual returns (see more Top Earnings ESP stocks here).
Clearly, recent earnings estimate revisions suggest that good things are ahead for McKesson, and that a beat might be in the cards for the upcoming report.
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Should You Buy McKesson Corporation (MCK) Ahead of Earnings?
Investors are always looking for stocks that are poised to beat at earnings season and McKesson Corporation (MCK - Free Report) may be one such company. The firm has earnings coming up pretty soon, and events are shaping up quite nicely for their report.
That is because McKesson is seeing favorable earnings estimate revision activity as of late, which is generally a precursor to an earnings beat. After all, analysts raising estimates right before earnings — with the most up-to-date information possible — is a pretty good indicator of some favorable trends underneath the surface for MCK in this report.
In fact, the Most Accurate Estimate for the current quarter is currently at $2.80 per share for MCK, compared to a broader Zacks Consensus Estimate of $2.78 per share. This suggests that analysts have very recently bumped up their estimates for MCK, giving the stock a Zacks Earnings ESP of +0.72% heading into earnings season.
McKesson Corporation Price and EPS Surprise
McKesson Corporation Price and EPS Surprise | McKesson Corporation Quote
Why is this Important?
A positive reading for the Zacks Earnings ESP has proven to be very powerful in producing both positive surprises, and outperforming the market. Our recent 10-year backtest shows that stocks that have a positive Earnings ESP and a Zacks Rank #3 (Hold) or better show a positive surprise nearly 70% of the time, and have returned over 28% on average in annual returns (see more Top Earnings ESP stocks here).
Given that MCK has a Zacks Rank #3 (Hold) and an ESP in positive territory, investors might want to consider this stock ahead of earnings. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Clearly, recent earnings estimate revisions suggest that good things are ahead for McKesson, and that a beat might be in the cards for the upcoming report.
Zacks' Hidden Trades
While we share many recommendations and ideas with the public, certain moves are hidden from everyone but selected members of our portfolio services. Would you like to peek behind the curtain today and view them?
Starting now, for the next month, I invite you to follow all Zacks' private buys and sells in real time from value to momentum...from stocks under $10 to ETF to option movers...from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors.
Click here for Zacks' secret trade>>