McKesson (MCK) ended the recent trading session at $747.53, demonstrating a -2.09% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily gain of 1.18%. Elsewhere, the Dow gained 0.59%, while the tech-heavy Nasdaq added 2.07%.
The stock of prescription drug distributor has risen by 2.84% in the past month, lagging the Medical sector's gain of 7.96% and overreaching the S&P 500's loss of 2.9%.
Market participants will be closely following the financial results of McKesson in its upcoming release. The company plans to announce its earnings on August 5, 2026. The company is predicted to post an EPS of $9.63, indicating a 16.59% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $104.39 billion, up 6.7% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $44.28 per share and revenue of $432.83 billion, which would represent changes of +13.22% and +7.29%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for McKesson. These revisions help to show the ever-changing nature 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 reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.03% higher. Right now, McKesson possesses a Zacks Rank of #3 (Hold).
Investors should also note McKesson's current valuation metrics, including its Forward P/E ratio of 17.24. This indicates a premium in contrast to its industry's Forward P/E of 15.85.
We can also see that MCK currently has a PEG ratio of 1.26. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. MCK's industry had an average PEG ratio of 1.77 as of yesterday's close.
The Medical - Dental Supplies industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 97, finds itself in the top 40% echelons 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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This article originally published on Zacks Investment Research (zacks.com).