Yahoo Finance McKesson (MCK) Stock Slides as Market Rises: Facts to Know Before You Trade
McKesson (MCK) closed the most recent trading day at $599.56, moving -0.8% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 0.16% for the day. Elsewhere, the Dow gained 0.04%, while the tech-heavy Nasdaq added 0.49%.
The prescription drug distributor's shares have seen an increase of 10.04% over the last month, surpassing the Medical sector's gain of 2.32% and the S&P 500's gain of 3.22%.
Analysts and investors alike will be keeping a close eye on the performance of McKesson in its upcoming earnings disclosure. The company is expected to report EPS of $7.18, down 1.24% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $83.36 billion, up 11.92% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $31.47 per share and revenue of $354.8 billion, indicating changes of +14.69% and +14.84%, respectively, compared to the previous 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. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.09% lower. Currently, McKesson is carrying a Zacks Rank of #3 (Hold).
In the context of valuation, McKesson is at present trading with a Forward P/E ratio of 19.2. This represents a premium compared to its industry's average Forward P/E of 18.57.
It is also worth noting 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. Medical - Dental Supplies stocks are, on average, holding a PEG ratio of 1.99 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 153, which puts it in the bottom 40% 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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McKesson Corporation (MCK) : Free Stock Analysis Report
