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Why McKesson (MCK) is a Top Value Stock for the Long-Term

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.

Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.

Why Investors Should Pay Attention to This Value Stock

Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to highlight the most attractive and discounted stocks.

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McKesson (MCK)

San Francisco, CA-based McKesson Corporation is a health care services and information technology company. McKesson operates through two segments:

MCK is a Zacks Rank #3 (Hold) stock, with a Value Style Score of A and VGM Score of B. Shares are currently trading at a forward P/E of 16.7X for the current fiscal year compared to the Medical - Dental Supplies industry's P/E of 17.4X. Additionally, MCK has a PEG Ratio of 1.4 and a Price/Cash Flow ratio of 16.1X. Value investors should also note MCK's Price/Sales ratio of 0.2X.

Many value investors pay close attention to a company's earnings as well. For MCK, three analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.13 to $27.59 per share for 2024. Per share MCK boasts an average earnings surprise of 9.1%.

Investors should take the time to consider MCK for their portfolios due to its solid Zacks Ranks, notable earnings and valuation metrics, and impressive Value and VGM Style Scores.

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McKesson Corporation (MCK) : Free Stock Analysis Report

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Zacks Investment Research