McKesson (MCK) Stock Slides as Market Rises: Facts to Know Before You Trade

McKesson (MCK) closed the latest trading day at $640.66, indicating a -1.92% change from the previous session's end. This move lagged the S&P 500's daily gain of 0.49%. On the other hand, the Dow registered a loss of 0.2%, and the technology-centric Nasdaq increased by 1.22%.The prescription drug distributor's shares have seen an increase of 7.01% over the last month, surpassing the Medical sector's loss of 1.05% and the S&P 500's loss of 8.15%.Market participants will be closely following the financial results of McKesson in its upcoming release. The company's upcoming EPS is projected at $9.81, signifying a 58.74% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $93.09 billion, up 21.92% from the year-ago period.Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $32.76 per share and revenue of $360.63 billion, indicating changes of +19.39% and +16.73%, respectively, compared to the previous year.It is also important to note the recent changes to analyst estimates for McKesson. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.01% higher. Right now, McKesson possesses a Zacks Rank of #3 (Hold).Digging into valuation, McKesson currently has a Forward P/E ratio of 19.94. This signifies a premium in comparison to the average Forward P/E of 16.08 for its industry.One should further note that MCK currently holds a PEG ratio of 1.4. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Medical - Dental Supplies industry stood at 1.85 at the close of the market yesterday.The Medical - Dental Supplies industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 86, positioning it in the top 35% of all 250+ industries.The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.To follow MCK in the coming trading sessions, be sure to utilize Zacks.com.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>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