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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
McKesson (MCK - Free Report) is a stock many investors are watching right now. MCK is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 9.63 right now. For comparison, its industry sports an average P/E of 16.80. MCK's Forward P/E has been as high as 9.98 and as low as 7.78, with a median of 9.08, all within the past year.
Investors will also notice that MCK has a PEG ratio of 1.37. 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. MCK's industry has an average PEG of 1.74 right now. Over the past 52 weeks, MCK's PEG has been as high as 1.46 and as low as 1.12, with a median of 1.32.
We should also highlight that MCK has a P/B ratio of 3.14. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 3.16. Over the past year, MCK's P/B has been as high as 3.25 and as low as 2.22, with a median of 2.67.
Finally, investors will want to recognize that MCK has a P/CF ratio of 8.71. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. MCK's P/CF compares to its industry's average P/CF of 15.84. MCK's P/CF has been as high as 9.02 and as low as 6.39, with a median of 7.73, all within the past year.
These are just a handful of the figures considered in McKesson's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that MCK is an impressive value stock right now.
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Is McKesson (MCK) Stock Undervalued Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
McKesson (MCK - Free Report) is a stock many investors are watching right now. MCK is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 9.63 right now. For comparison, its industry sports an average P/E of 16.80. MCK's Forward P/E has been as high as 9.98 and as low as 7.78, with a median of 9.08, all within the past year.
Investors will also notice that MCK has a PEG ratio of 1.37. 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. MCK's industry has an average PEG of 1.74 right now. Over the past 52 weeks, MCK's PEG has been as high as 1.46 and as low as 1.12, with a median of 1.32.
We should also highlight that MCK has a P/B ratio of 3.14. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 3.16. Over the past year, MCK's P/B has been as high as 3.25 and as low as 2.22, with a median of 2.67.
Finally, investors will want to recognize that MCK has a P/CF ratio of 8.71. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. MCK's P/CF compares to its industry's average P/CF of 15.84. MCK's P/CF has been as high as 9.02 and as low as 6.39, with a median of 7.73, all within the past year.
These are just a handful of the figures considered in McKesson's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that MCK is an impressive value stock right now.