McKesson (MCK) Stock Moves -0.97%: What You Should Know

McKesson (MCK) closed at $345.56 in the latest trading session, marking a -0.97% move from the prior day. This change was narrower than the S&P 500's daily loss of 1.13%. At the same time, the Dow lost 1.01%, and the tech-heavy Nasdaq lost 0.14%.

Coming into today, shares of the prescription drug distributor had lost 5.21% in the past month. In that same time, the Medical sector lost 4.89%, while the S&P 500 lost 7.59%.

McKesson will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $6.13, down 0.33% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $69.31 billion, up 4.11% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $24.42 per share and revenue of $274.54 billion. These totals would mark changes of +3.08% and +4.01%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for McKesson. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.11% higher within the past month. McKesson currently has a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that McKesson has a Forward P/E ratio of 14.29 right now. Its industry sports an average Forward P/E of 18.55, so we one might conclude that McKesson is trading at a discount comparatively.

Investors should also note that MCK has a PEG ratio of 1.42 right now. 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. The Medical - Dental Supplies industry currently had an average PEG ratio of 2.01 as of yesterday's close.

The Medical - Dental Supplies industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 211, which puts it in the bottom 17% of all 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.

To follow MCK in the coming trading sessions, be sure to utilize Zacks.com.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.