McKesson (MCK) ended the recent trading session at $1,015.50, demonstrating a -1.42% change from the preceding day's closing price. This change lagged the S&P 500's 0.58% gain on the day. At the same time, the Dow added 0.69%, and the tech-heavy Nasdaq gained 1.05%.
Shares of the prescription drug distributor witnessed a gain of 15.58% over the previous month, beating the performance of the Medical sector with its gain of 3.5%, and the S&P 500's gain of 0.97%.
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 November 4, 2026. The company is forecasted to report an EPS of $10.69, showcasing a 8.42% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $110.11 billion, indicating a 6.75% increase compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $44.71 per share and revenue of $429.01 billion. These totals would mark changes of +14.32% and +6.34%, respectively, from last year.
Any recent changes to analyst estimates for McKesson should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 0.14% higher. At present, McKesson boasts a Zacks Rank of #3 (Hold).
In terms of valuation, McKesson is presently being traded at a Forward P/E ratio of 23.04. This signifies a premium in comparison to the average Forward P/E of 17.52 for its industry.
One should further note that MCK currently holds a PEG ratio of 2.05. 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 industry had an average PEG ratio of 2.05 as trading concluded yesterday.
The Medical - Dental Supplies industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 101, finds itself in the top 42% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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This article originally published on Zacks Investment Research (zacks.com).