McKesson (MCK) Surpasses Market Returns: Key Insights

McKesson (MCK) finished the latest trading day at $585.08, reflecting an increase of +0.57% compared to its previous closing price. This performance outpaced the S&P 500, which rose by only 0.16%. In contrast, the Dow Jones Industrial Average saw a bigger gain of 0.86%, while the technology-focused Nasdaq index experienced a decline of 0.38%.

Over the past month, shares of McKesson have grown by 0.95%, which is impressive when juxtaposed with the Medical sector's loss of 5.3% and the S&P 500's 2.2% drop.

Investors are keenly anticipating McKesson's forthcoming earnings announcement, scheduled for February 5, 2025. Analysts project the company will report earnings per share (EPS) of $8.28, marking a growth of 6.98% compared to the same quarter last year. Furthermore, revenue is expected to reach $95.46 billion, reflecting a robust increase of 18% year-over-year.

For the full year, the Zacks Consensus Estimates suggest an EPS of $32.73 and total revenue of $358.91 billion, indicating annual changes of +19.28% and +16.17%, respectively.

It's important to monitor revisions in analyst estimates regarding McKesson as these adjustments can highlight shifts in short-term business trends. Positive changes in these estimates often signify analysts' confidence in the company's operational success and profit potential.

Our findings suggest that these estimate changes correlate closely with stock movements in the near term. To aid investors, the Zacks Rank offers a systematic approach that takes these revisions into account, providing a rating scale ranging from #1 (Strong Buy) to #5 (Strong Sell). Historically, stocks rated #1 have delivered average annual returns of +25% since 1988. Currently, McKesson holds a Zacks Rank of #3 (Hold).

When examining valuation, McKesson boasts a Forward P/E ratio of 17.78, which is advantageous compared to the industry average of 18.04. Additionally, the company's PEG ratio stands at 1.26, which evaluates its price relative to expected earnings growth. For context, the Medical - Dental Supplies industry holds an average PEG ratio of 1.94.

The Medical - Dental Supplies industry, part of the broader Medical sector, ranks 61st within Zacks Industry Rank, placing it in the top 25% of over 250 industries. This ranking gauges the strength of industry groups by assessing the average Zacks Rank of companies within those groups. Historically, companies in higher-rated industries perform better than those in lower-rated ones.

Investors interested in tracking McKesson's performance in the upcoming trading sessions should keep an eye on these developments.

McKesson, Stocks, Market