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McKesson (MCK) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, McKesson (MCK) closed at $325.18, marking a -0.67% move from the previous day. This change lagged the S&P 500's 0.45% loss on the day. Meanwhile, the Dow lost 0.67%, and the Nasdaq, a tech-heavy index, lost 0.06%.

Coming into today, shares of the prescription drug distributor had gained 6.81% in the past month. In that same time, the Medical sector gained 2.19%, while the S&P 500 lost 1.89%.

Investors will be hoping for strength from McKesson as it approaches its next earnings release, which is expected to be August 3, 2022. On that day, McKesson is projected to report earnings of $5.30 per share, which would represent a year-over-year decline of 4.68%. Our most recent consensus estimate is calling for quarterly revenue of $63.87 billion, up 1.91% from the year-ago period.

MCK's full-year Zacks Consensus Estimates are calling for earnings of $23.26 per share and revenue of $264.78 billion. These results would represent year-over-year changes of -1.82% and +0.31%, respectively.

Investors should also note any recent changes to analyst estimates for McKesson. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Within the past 30 days, our consensus EPS projection has moved 0.05% higher. McKesson is currently a Zacks Rank #2 (Buy).

Looking at its valuation, McKesson is holding a Forward P/E ratio of 14.07. Its industry sports an average Forward P/E of 20.7, so we one might conclude that McKesson is trading at a discount comparatively.

We can also see that MCK currently has a PEG ratio of 1.48. 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 currently had an average PEG ratio of 2.14 as of yesterday's close.

The Medical - Dental Supplies industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 56, which puts it in the top 23% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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