Yahoo Finance McKesson (MCK) Laps the Stock Market: Here's Why
McKesson (MCK) closed the most recent trading day at $591.07, moving +1.07% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.23%. At the same time, the Dow lost 0.17%, and the tech-heavy Nasdaq gained 0.34%.
The prescription drug distributor's stock has climbed by 6.02% in the past month, exceeding the Medical sector's gain of 2.69% and the S&P 500's gain of 3.96%.
Analysts and investors alike will be keeping a close eye on the performance of McKesson in its upcoming earnings disclosure. In that report, analysts expect McKesson to post earnings of $7.18 per share. This would mark a year-over-year decline of 1.24%. Meanwhile, our latest consensus estimate is calling for revenue of $83.36 billion, up 11.92% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $31.47 per share and a revenue of $354.8 billion, indicating changes of +14.69% and +14.84%, respectively, from the former year.
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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.04% lower. McKesson is holding a Zacks Rank of #3 (Hold) right now.
Looking at valuation, McKesson is presently trading at a Forward P/E ratio of 18.58. This represents a premium compared to its industry's average Forward P/E of 18.27.
We can additionally observe that MCK currently boasts a PEG ratio of 1.37. 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. The average PEG ratio for the Medical - Dental Supplies industry stood at 1.9 at the close of the market yesterday.
The Medical - Dental Supplies industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 179, placing it within the bottom 29% of over 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.
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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McKesson Corporation (MCK) : Free Stock Analysis Report
