McKesson (MCK) closed at $1,030.12 in the latest trading session, marking a +1.95% move from the prior day. The stock's change was more than the S&P 500's daily gain of 0.28%. Meanwhile, the Dow gained 1.02%, and the Nasdaq, a tech-heavy index, lost 0.02%.
Coming into today, shares of the prescription drug distributor had gained 13.98% in the past month. In that same time, the Medical sector gained 1.01%, while the S&P 500 gained 0.67%.
The investment community will be paying close attention to the earnings performance of McKesson in its upcoming release. The company is slated to reveal its earnings on November 4, 2026. On that day, McKesson is projected to report earnings of $10.69 per share, which would represent year-over-year growth of 8.42%. Alongside, our most recent consensus estimate is anticipating revenue of $110.11 billion, indicating a 6.75% upward movement from the same quarter last year.
MCK's full-year Zacks Consensus Estimates are calling for earnings of $44.71 per share and revenue of $429.01 billion. These results would represent year-over-year changes of +14.32% and +6.34%, respectively.
Investors might also notice recent changes to analyst estimates for McKesson. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 0.14% rise in the Zacks Consensus EPS estimate. McKesson presently features a Zacks Rank of #3 (Hold).
In the context of valuation, McKesson is at present trading with a Forward P/E ratio of 22.6. For comparison, its industry has an average Forward P/E of 17.17, which means McKesson is trading at a premium to the group.
We can additionally observe that MCK currently boasts a PEG ratio of 2.01. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Medical - Dental Supplies industry currently had an average PEG ratio of 2.01 as of yesterday's close.
The Medical - Dental Supplies industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 99, placing it within the top 41% of over 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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McKesson Corporation (MCK): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).