The latest trading session saw McKesson (MCK) ending at $602.95, denoting a -0.24% adjustment from its last day's close. The stock fell short of the S&P 500, which registered a gain of 0.92% for the day. At the same time, the Dow added 0.31%, and the tech-heavy Nasdaq gained 2.03%.
Heading into today, shares of the prescription drug distributor had gained 5.9% over the past month, outpacing the Medical sector's gain of 3.83% and the S&P 500's gain of 0.81% in that time.
The investment community will be closely monitoring the performance of McKesson in its forthcoming earnings report. The company is scheduled to release its earnings on February 5, 2025. The company's earnings per share (EPS) are projected to be $8.19, reflecting a 5.81% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $95.46 billion, up 18% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $32.72 per share and revenue of $358.91 billion, indicating changes of +19.24% and +16.17%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments to analyst estimates for McKesson. These latest adjustments often mirror the shifting dynamics of short-term business patterns. 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. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.02% lower. McKesson presently features a Zacks Rank of #3 (Hold).
In the context of valuation, McKesson is at present trading with a Forward P/E ratio of 18.47. This expresses no noticeable deviation compared to the average Forward P/E of 18.47 of its industry.
Investors should also note that MCK has a PEG ratio of 1.31 right now. 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. As of the close of trade yesterday, the Medical - Dental Supplies industry held an average PEG ratio of 2.1.
The Medical - Dental Supplies industry is part of the Medical sector. With its current Zacks Industry Rank of 137, this industry ranks in the bottom 46% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. 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.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>McKesson Corporation (MCK) : Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
