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McKesson (MCK) ended the recent trading session at $699.73, demonstrating a +0.68% swing from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily gain of 0.06%. On the other hand, the Dow registered a gain of 0.28%, and the technology-centric Nasdaq decreased by 0.1%.
The prescription drug distributor's shares have seen an increase of 4.03% over the last month, surpassing the Medical sector's loss of 6.38% and the S&P 500's loss of 4.29%.
Market participants will be closely following the financial results of McKesson in its upcoming release. The company plans to announce its earnings on May 8, 2025. In that report, analysts expect McKesson to post earnings of $9.81 per share. This would mark year-over-year growth of 58.74%. Alongside, our most recent consensus estimate is anticipating revenue of $93.7 billion, indicating a 22.72% upward movement from the same quarter last year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for McKesson. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. The Zacks Consensus EPS estimate has moved 0.26% lower within the past month. As of now, McKesson holds a Zacks Rank of #3 (Hold).
In terms of valuation, McKesson is presently being traded at a Forward P/E ratio of 19. For comparison, its industry has an average Forward P/E of 18.57, which means McKesson is trading at a premium to the group.
Also, we should mention that MCK has a PEG ratio of 1.35. 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 1.8 at the close of the market yesterday.
The Medical - Dental Supplies industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 79, finds itself in the top 32% echelons of all 250+ industries.