McKesson (MCK) Stock Moves -1.63%: What You Should Know
McKesson (MCK) closed at $341.82 in the latest trading session, marking a -1.63% move from the prior day. This change was narrower than the S&P 500's 1.65% loss on the day. Elsewhere, the Dow lost 1.63%, while the tech-heavy Nasdaq lost 6.65%.
Coming into today, shares of the prescription drug distributor had lost 3.88% in the past month. In that same time, the Medical sector lost 1.27%, while the S&P 500 gained 0.3%.
Wall Street will be looking for positivity from McKesson as it approaches its next earnings report date. The company is expected to report EPS of $7.14, up 22.47% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $67.93 billion, up 2.77% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $25.93 per share and revenue of $275.74 billion. These totals would mark changes of +9.46% and +4.46%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for McKesson. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. McKesson is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that McKesson has a Forward P/E ratio of 13.4 right now. For comparison, its industry has an average Forward P/E of 19.95, which means McKesson is trading at a discount to the group.
It is also worth noting that MCK currently has a PEG ratio of 1.29. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Medical - Dental Supplies was holding an average PEG ratio of 2.06 at yesterday's closing price.
The Medical - Dental Supplies industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 57, which puts it in the top 23% 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.
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McKesson Corporation (MCK) : Free Stock Analysis Report
