McKesson (MCK) Outperforms Broader Market: What You Need to Know

In the latest trading session, McKesson (MCK) closed at $719.80, marking a +1.92% move from the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.85%. Meanwhile, the Dow experienced a rise of 1.36%, and the technology-dominated Nasdaq saw an increase of 0.72%. Shares of the prescription drug distributor witnessed a gain of 6.5% over the previous month, beating the performance of the Medical sector with its gain of 6.01%, and the S&P 500's gain of 2.38%.Investors will be eagerly watching for the performance of McKesson in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $8.58, marking a 21.36% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $103.79 billion, up 10.82% from the year-ago period. For the full year, the Zacks Consensus Estimates project earnings of $37.21 per share and a revenue of $407.45 billion, demonstrating changes of +12.59% and +13.48%, respectively, from the preceding year. Investors should also note any recent changes to analyst estimates for McKesson. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection has moved 0.03% lower. McKesson is currently sporting a Zacks Rank of #3 (Hold). Looking at its valuation, McKesson is holding a Forward P/E ratio of 18.98. This signifies a premium in comparison to the average Forward P/E of 15 for its industry. Also, we should mention that MCK has a PEG ratio of 1.4. 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. As the market closed yesterday, the Medical - Dental Supplies industry was having an average PEG ratio of 1.78. The Medical - Dental Supplies industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 163, placing it within the bottom 35% of over 250 industries. The Zacks Industry Rank gauges the strength of our 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. You can find more information on all of these metrics, and much more, on Zacks.com. Research Chief Names "Single Best Pick to Double"From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant 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