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McKesson (MCK) Outpaces Stock Market Gains: What You Should Know

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McKesson (MCK) closed the most recent trading day at $314.66, moving +1.16% from the previous trading session. This change outpaced the S&P 500's 0.95% gain on the day. At the same time, the Dow added 0.64%, and the tech-heavy Nasdaq gained 0.15%.

Coming into today, shares of the prescription drug distributor had lost 6.73% in the past month. In that same time, the Medical sector lost 3.97%, while the S&P 500 lost 3.49%.

Wall Street will be looking for positivity from McKesson as it approaches its next earnings report date. The company is expected to report EPS of $5.29, down 4.86% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $63.87 billion, up 1.91% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $23.25 per share and revenue of $264.78 billion. These totals would mark changes of -1.86% and +0.31%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for McKesson. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.23% higher within the past month. McKesson is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note McKesson's current valuation metrics, including its Forward P/E ratio of 13.38. For comparison, its industry has an average Forward P/E of 18.15, which means McKesson is trading at a discount to the group.

We can also see that MCK currently has a PEG ratio of 1.42. 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. MCK's industry had an average PEG ratio of 2.05 as of yesterday's close.

The Medical - Dental Supplies industry is part of the Medical sector. This group has a Zacks Industry Rank of 198, putting it in the bottom 22% 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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