Why McKesson (MCK) is a Top Value Stock for the Long-Term
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.
While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.
Why Investors Should Pay Attention to This Value Stock
Different than growth or momentum investors, value-focused investors are all about finding good stocks at good prices, and discovering which companies are trading under what their true value is before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to help pick out the most attractive and discounted stocks.
McKesson (MCK)
San Francisco, CA-based McKesson Corporation is a health care services and information technology company. McKesson operates through two segments:
MCK is a Zacks Rank #3 (Hold) stock, with a Value Style Score of A and VGM Score of B. Shares are currently trading at a forward P/E of 19X for the current fiscal year compared to the Medical - Dental Supplies industry's P/E of 19.2X. Additionally, MCK has a PEG Ratio of 1.6 and a Price/Cash Flow ratio of 16.3X. Value investors should also note MCK's Price/Sales ratio of 0.2X.
Value investors don't just pay attention to a company's valuation ratios; positive earnings play a crucial role, too. Seven analysts revised their earnings estimate upwards in the last 60 days for fiscal 2024. The Zacks Consensus Estimate has increased $0.36 to $27.62 per share. MCK has an average earnings surprise of 9.1%.
Investors should take the time to consider MCK for their portfolios due to its solid Zacks Ranks, notable earnings and valuation metrics, and impressive Value and VGM Style Scores.
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McKesson Corporation (MCK) : Free Stock Analysis Report
