In the latest close session, McKesson (MCK) was down 1.1% at $803.37. This move lagged the S&P 500's daily gain of 0.38%. At the same time, the Dow added 0.02%, and the tech-heavy Nasdaq gained 0.9%.
Heading into today, shares of the prescription drug distributor had gained 4.17% over the past month, lagging the Medical sector's gain of 4.34% and outpacing the S&P 500's gain of 1.27%.
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 August 5, 2026. In that report, analysts expect McKesson to post earnings of $9.59 per share. This would mark year-over-year growth of 16.1%. Alongside, our most recent consensus estimate is anticipating revenue of $104.39 billion, indicating a 6.7% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $44.28 per share and a revenue of $432.77 billion, demonstrating changes of +13.22% and +7.27%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for McKesson. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0% higher. Currently, McKesson is carrying a Zacks Rank of #2 (Buy).
Looking at its valuation, McKesson is holding a Forward P/E ratio of 18.34. This valuation marks a premium compared to its industry average Forward P/E of 17.08.
It's also important to note that MCK currently trades at a PEG ratio of 1.34. 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. MCK's industry had an average PEG ratio of 1.86 as of yesterday's close.
The Medical - Dental Supplies industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 64, positioning it in the top 27% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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McKesson Corporation (MCK): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).