McKesson (MCK) closed the most recent trading day at $342, moving -1.99% from the previous trading session. This move was narrower than the S&P 500's daily loss of 2.11%. At the same time, the Dow lost 1.54%, and the tech-heavy Nasdaq lost 0.3%.
Coming into today, shares of the prescription drug distributor had lost 4.92% in the past month. In that same time, the Medical sector lost 4.04%, while the S&P 500 lost 8.19%.
Investors will be hoping for strength from McKesson as it approaches its next earnings release. On that day, McKesson is projected to report earnings of $6.13 per share, which would represent a year-over-year decline of 0.33%. Meanwhile, our latest consensus estimate is calling for revenue of $69.66 billion, up 4.64% from the prior-year quarter.
MCK's full-year Zacks Consensus Estimates are calling for earnings of $24.42 per share and revenue of $276.88 billion. These results would represent year-over-year changes of +3.08% and +4.89%, respectively.
Investors might also notice recent changes to analyst estimates for McKesson. These recent revisions tend to reflect the evolving nature of short-term business trends. 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.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. McKesson currently has a Zacks Rank of #2 (Buy).
In terms of valuation, McKesson is currently trading at a Forward P/E ratio of 14.29. Its industry sports an average Forward P/E of 17.33, 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 1.42. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Medical - Dental Supplies stocks are, on average, holding a PEG ratio of 1.85 based on yesterday's closing prices.
The Medical - Dental Supplies industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 231, which puts it in the bottom 9% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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McKesson Corporation (MCK) : Free Stock Analysis Report
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