McKesson (MCK) closed the most recent trading day at $712.79, moving +0.78% from the previous trading session. The stock's performance was ahead of the S&P 500's daily gain of 0.15%. Meanwhile, the Dow experienced a rise of 0.35%, and the technology-dominated Nasdaq saw a decrease of 0.09%.

Prior to today's trading, shares of the prescription drug distributor had gained 4.99% over the past month. This has outpaced the Medical sector's loss of 4.39% and the S&P 500's loss of 0.21% in that time.

The upcoming earnings release of McKesson will be of great interest to investors. The company's earnings report is expected on May 8, 2025. The company's upcoming EPS is projected at $9.81, signifying a 58.74% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $93.7 billion, indicating a 22.72% growth compared to the corresponding quarter of the prior year.

Investors should also take note of any recent adjustments to analyst estimates for McKesson. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 0.26% fall in the Zacks Consensus EPS estimate. Right now, McKesson possesses a Zacks Rank of #3 (Hold).

Looking at valuation, McKesson is presently trading at a Forward P/E ratio of 19.33. This represents a premium compared to its industry's average Forward P/E of 18.01.

Also, we should mention that MCK has a PEG ratio of 1.37. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Medical - Dental Supplies industry was having an average PEG ratio of 1.86.

The Medical - Dental Supplies industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 159, positioning it in the bottom 36% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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This article originally published on Zacks Investment Research (zacks.com).

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