McKesson (MCK) ended the recent trading session at $976.57, demonstrating a +1.53% change from the preceding day's closing price. The stock outpaced the S&P 500's daily loss of 1.11%. Elsewhere, the Dow saw a downswing of 0.09%, while the tech-heavy Nasdaq depreciated by 1.88%.
Coming into today, shares of the prescription drug distributor had gained 6.93% in the past month. In that same time, the Medical sector lost 0.4%, while the S&P 500 gained 2.06%.
The upcoming earnings release of McKesson will be of great interest to investors. The company's earnings report is expected on November 4, 2026. In that report, analysts expect McKesson to post earnings of $10.72 per share. This would mark year-over-year growth of 8.72%. At the same time, our most recent consensus estimate is projecting a revenue of $110.11 billion, reflecting a 6.75% rise from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $44.73 per share and a revenue of $429.01 billion, indicating changes of +14.37% and +6.34%, respectively, from the former year.
Investors should also note any recent changes to analyst estimates for McKesson. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.18% higher. McKesson is currently a Zacks Rank #2 (Buy).
From a valuation perspective, McKesson is currently exchanging hands at a Forward P/E ratio of 21.5. This valuation marks a premium compared to its industry average Forward P/E of 17.49.
We can also see that MCK currently has a PEG ratio of 2.02. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. MCK's industry had an average PEG ratio of 2.02 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 73, positioning it in the top 30% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow MCK in the coming trading sessions, be sure to utilize Zacks.com.
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McKesson Corporation (MCK): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).