McKesson (MCK) Surpasses Market Returns: Some Facts Worth Knowing

Company Performance - McKesson's stock closed at $585.08, with a daily increase of +0.57%, outperforming the S&P 500's gain of 0.16% [1] - Over the last month, McKesson's shares increased by 0.95%, while the Medical sector experienced a loss of 5.3% and the S&P 500 lost 2.2% [1] Upcoming Earnings - McKesson is set to disclose its earnings on February 5, 2025, with an expected EPS of$ 8.28, reflecting a 6.98% increase from the same quarter last year [2] - The revenue forecast for the upcoming earnings report is $95.46 billion, indicating an 18% growth compared to the same quarter of the previous year [2] Annual Estimates - For the annual period, the Zacks Consensus Estimates predict earnings of$ 32.73 per share and revenue of $358.91 billion, representing increases of +19.28% and +16.17% respectively from the previous year [3] - Recent changes in analyst estimates suggest a positive outlook for McKesson's business performance and profit potential [3] Valuation Metrics - McKesson has a Forward P/E ratio of 17.78, which is lower than the industry average Forward P/E of 18.04, indicating a potential valuation discount [5] - The company also has a PEG ratio of 1.26, compared to the Medical - Dental Supplies industry's average PEG ratio of 1.94, suggesting favorable growth expectations relative to its valuation [6] Industry Context - The Medical - Dental Supplies industry, which includes McKesson, holds a Zacks Industry Rank of 61, placing it in the top 25% of over 250 industries [7] - The Zacks Industry Rank indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1, highlighting the strength of the industry [7]