McKesson(US:MCK) ZACKS·2025-07-02 23:01Core Viewpoint - McKesson's stock performance has lagged behind the broader market, with upcoming earnings expected to show growth in both EPS and revenue compared to the previous year [1][2][3]. Financial Performance - McKesson is scheduled to report earnings on August 6, 2025, with a forecasted EPS of $8.33, reflecting a 5.71% increase year-over-year [2]. - Revenue is projected to be $95.77 billion, indicating a 20.79% increase compared to the same quarter of the previous year [2]. - For the entire fiscal year, earnings are estimated at $37.23 per share and revenue at $405.85 billion, representing increases of 12.65% and 13.03% respectively from the prior year [3]. Analyst Estimates - Recent revisions in analyst estimates suggest confidence in McKesson's business performance and profit potential [3]. - The Zacks Consensus EPS estimate has increased by 0.09% over the past month, and McKesson currently holds a Zacks Rank of 2 (Buy) [5]. Valuation Metrics - McKesson is trading at a Forward P/E ratio of 19.55, which is higher than the industry average of 17.95, indicating a premium valuation [6]. - The company has a PEG ratio of 1.45, compared to the industry average PEG ratio of 1.68, suggesting a favorable growth outlook relative to its valuation [7]. Industry Context - The Medical - Dental Supplies industry, which includes McKesson, has a Zacks Industry Rank of 23, placing it in the top 10% of over 250 industries [8].