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McKesson (MCK) ended the recent trading session at $679.33, demonstrating a +1.13% swing from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily loss of 3.46%. On the other hand, the Dow registered a loss of 2.5%, and the technology-centric Nasdaq decreased by 4.31%.
The prescription drug distributor's shares have seen an increase of 4.85% over the last month, surpassing the Medical sector's loss of 10.85% and the S&P 500's loss of 5.27%.
Analysts and investors alike will be keeping a close eye on the performance of McKesson in its upcoming earnings disclosure. The company's earnings report is set to go public on May 8, 2025. On that day, McKesson is projected to report earnings of $9.81 per share, which would represent year-over-year growth of 58.74%. In the meantime, our current consensus estimate forecasts the revenue to be $93.7 billion, indicating a 22.72% growth compared to the corresponding quarter of the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for McKesson. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.26% lower. As of now, McKesson holds a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that McKesson has a Forward P/E ratio of 17.85 right now. This signifies a premium in comparison to the average Forward P/E of 15.09 for its industry.
Also, we should mention that MCK has a PEG ratio of 1.26. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Medical - Dental Supplies industry held an average PEG ratio of 1.55.
The Medical - Dental Supplies industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 75, placing it within the top 31% of over 250 industries.