McKesson (MCK) closed the most recent trading day at $359.24, moving -1.11% from the previous trading session. This move lagged the S&P 500's daily loss of 0.38%. At the same time, the Dow lost 0.68%, and the tech-heavy Nasdaq lost 10.47%.
Prior to today's trading, shares of the prescription drug distributor had gained 2.49% over the past month. This has lagged the Medical sector's gain of 4.28% and the S&P 500's gain of 2.61% in that time.
McKesson will be looking to display strength as it nears its next earnings release, which is expected to be May 8, 2023. On that day, McKesson is projected to report earnings of $7.13 per share, which would represent year-over-year growth of 22.3%. Our most recent consensus estimate is calling for quarterly revenue of $67.93 billion, up 2.77% from the year-ago period.
It is also important to note the recent changes to analyst estimates for McKesson. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.08% lower. McKesson is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note McKesson's current valuation metrics, including its Forward P/E ratio of 13.81. This valuation marks a discount compared to its industry's average Forward P/E of 21.65.
It is also worth noting that MCK currently has a PEG ratio of 1.33. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. MCK's industry had an average PEG ratio of 2.21 as of yesterday's close.
The Medical - Dental Supplies industry is part of the Medical sector. This group has a Zacks Industry Rank of 106, putting it in the top 43% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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