In the latest trading session, McKesson (MCK) closed at $831.46, marking a -1.18% move from the previous day. The stock's performance was behind the S&P 500's daily loss of 0.19%. Elsewhere, the Dow lost 0.59%, while the tech-heavy Nasdaq lost 0.05%.
The prescription drug distributor's shares have seen an increase of 12.09% over the last month, surpassing the Medical sector's gain of 6.06% and the S&P 500's gain of 0.55%.
The upcoming earnings release of McKesson will be of great interest to investors. The company's earnings report is expected on August 5, 2026. On that day, McKesson is projected to report earnings of $9.59 per share, which would represent year-over-year growth of 16.1%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales 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 $432.77 billion, which would represent changes of +13.22% and +7.27%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for McKesson. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, 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. The Zacks Consensus EPS estimate has moved 0% higher within the past month. At present, McKesson boasts a Zacks Rank of #2 (Buy).
Looking at its valuation, McKesson is holding a Forward P/E ratio of 19. Its industry sports an average Forward P/E of 17.36, so one might conclude that McKesson is trading at a premium comparatively.
It's also important to note that MCK currently trades at a PEG ratio of 1.38. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Medical - Dental Supplies industry had an average PEG ratio of 1.87.
The Medical - Dental Supplies industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 63, placing it within the top 26% of over 250 industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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McKesson Corporation (MCK): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).