McKesson (MCK) ended the recent trading session at $807.33, demonstrating a +2.95% change from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily loss of 0.45%. At the same time, the Dow lost 0.25%, and the tech-heavy Nasdaq lost 1.16%.
The prescription drug distributor's shares have seen an increase of 2.29% over the last month, not keeping up with the Medical sector's gain of 6.33% and outstripping the S&P 500's gain of 2.14%.
The upcoming earnings release of McKesson will be of great interest to investors. The company's earnings report is expected on August 5, 2026. In that report, analysts expect McKesson to post earnings of $9.63 per share. This would mark year-over-year growth of 16.59%. 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 annual period, the Zacks Consensus Estimates anticipate earnings of $44.28 per share and a revenue of $432.83 billion, signifying shifts of +13.22% and +7.29%, respectively, from the last year.
Investors should also note any recent changes to analyst estimates 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 business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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 past month, the Zacks Consensus EPS estimate has moved 0% higher. Currently, McKesson is carrying a Zacks Rank of #3 (Hold).
Digging into valuation, McKesson currently has a Forward P/E ratio of 17.71. 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 1.29. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Medical - Dental Supplies was holding an average PEG ratio of 1.9 at yesterday's closing price.
The Medical - Dental Supplies industry is part of the Medical sector. This group has a Zacks Industry Rank of 78, putting it in the top 32% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. 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).