McKesson (MCK) Upgraded to Buy: Here's Why

Core Viewpoint - McKesson (MCK) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][2]. Earnings Outlook - The Zacks Consensus Estimate projects McKesson to earn $32.02 per share for the fiscal year ending March 2025, reflecting a year-over-year increase of 16.7% [5]. - Over the past three months, the consensus estimate for McKesson has risen by 1.8%, indicating a trend of increasing earnings estimates [5]. Impact of Earnings Estimates - Changes in a company's earnings potential, as shown by earnings estimate revisions, are strongly correlated with short-term stock price movements [3]. - Institutional investors utilize earnings estimates to assess the fair value of stocks, leading to buying or selling actions that affect stock prices [3]. Zacks Rating System - The Zacks Rank system categorizes stocks based on earnings estimate revisions, with a proven track record of Zacks Rank 1 stocks yielding an average annual return of +25% since 1988 [4]. - McKesson's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting a strong potential for market-beating returns in the near term [7].