McKesson (MCK) Outperforms Broader Market: What You Need to Know

Company Performance - McKesson's stock closed at $719.80, reflecting a +1.92% increase from the previous day, outperforming the S&P 500's gain of 0.85% [1] - Over the past month, McKesson shares gained 6.5%, surpassing the Medical sector's gain of 6.01% and the S&P 500's gain of 2.38% [1] Upcoming Earnings - McKesson is expected to report an EPS of $8.58, representing a 21.36% increase compared to the same quarter last year [2] - The consensus estimate for quarterly revenue is $103.79 billion, which is a 10.82% increase from the previous year [2] Full Year Projections - For the full year, earnings are projected at $37.21 per share and revenue at $407.45 billion, indicating increases of +12.59% and +13.48% respectively from the prior year [3] Analyst Estimates - Recent changes to analyst estimates for McKesson reflect near-term business trends, with positive revisions indicating analysts' confidence in the company's performance [3] - The Zacks Rank system, which incorporates estimate changes, has a strong track record of predicting stock price performance [4] Valuation Metrics - McKesson has a Forward P/E ratio of 18.98, which is above the industry average of 15 [6] - The company also has a PEG ratio of 1.4, compared to the Medical - Dental Supplies industry's average PEG ratio of 1.78 [6] Industry Context - The Medical - Dental Supplies industry, part of the Medical sector, has a Zacks Industry Rank of 163, placing it in the bottom 35% of over 250 industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]