McKesson (MCK) Dips More Than Broader Market: What You Should Know

In the latest trading session, McKesson (MCK) closed at $736.52, marking a -3.16% move from the previous day. The stock trailed the S&P 500, which registered a daily loss of 0.5%. Elsewhere, the Dow lost 0.38%, while the tech-heavy Nasdaq lost 0.5%. Prior to today's trading, shares of the prescription drug distributor had gained 11.28% outpaced the Medical sector's loss of 0.7% and the S&P 500's gain of 2.74%.Analysts and investors alike will be keeping a close eye on the performance of McKesson in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $8.67, marking a 22.63% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $103.81 billion, up 10.84% from the year-ago period. For the full year, the Zacks Consensus Estimates are projecting earnings of $37.5 per share and revenue of $407.45 billion, which would represent changes of +13.46% and +13.48%, respectively, from the prior year. Investors should also pay attention to any latest changes in 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. Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system. 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. Within the past 30 days, our consensus EPS projection has moved 2.82% higher. Right now, McKesson possesses a Zacks Rank of #3 (Hold). From a valuation perspective, McKesson is currently exchanging hands at a Forward P/E ratio of 20.28. This represents a premium compared to its industry average Forward P/E of 14.68. We can also see that MCK currently has a PEG ratio of 1.5. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. By the end of yesterday's trading, the Medical - Dental Supplies industry had an average PEG ratio of 1.65. The Medical - Dental Supplies industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 169, positioning it in the bottom 32% of all 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. Free Report: Profiting from the 2nd Wave of AI ExplosionThe next phase of the AI explosion is poised to create significant wealth for investors, especially those who get in early. It will add literally trillion of dollars to the economy and revolutionize nearly every part of our lives.Investors who bought shares like Nvidia at the right time have had a shot at huge gains.But the rocket ride in the "first wave" of AI stocks may soon come to an end. The sharp upward trajectory of these stocks will begin to level off, leaving exponential growth to a new wave of cutting-edge companies.Zacks' AI Boom 2.0: The Second Wave report reveals 4 under-the-radar companies that may soon be shining stars of AI’s next leap forward.Access AI Boom 2.0 now, absolutely free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report McKesson Corporation (MCK): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks