Core Viewpoint - McKesson Corporation is expected to report significant revenue and earnings growth in the fourth quarter of fiscal 2025, driven by the adoption of GLP-1 weight loss drugs, demand for specialty pharmaceuticals, and investments in technology and distribution [1][3][16]. Revenue Growth Drivers - The rapid adoption of GLP-1 weight loss drugs and sustained demand for branded pharmaceuticals have significantly fueled McKesson's revenue growth [1][6]. - A rebound in primary care visits has also supported top-line growth in the last two reported quarters [2]. - Investments in expanding distribution centers and integrating artificial intelligence into services have bolstered revenues [2][20]. Earnings Estimates - The Zacks Consensus Estimate for earnings is $9.81 per share, reflecting a 58.7% year-over-year improvement [3]. - The consensus revenue estimate is $93.7 billion, indicating a 22.7% year-over-year surge [3]. Segment Performance Insights - The U.S. Pharmaceutical segment is expected to show steady growth, driven by strong demand for specialty pharmaceuticals, particularly oncology treatments [4]. - The Prescription Technology Solutions segment is projected to see revenues of $1.33 billion, a 12.3% year-over-year improvement, supported by strong demand for technology services [9]. - The Medical Surgical Solutions segment is estimated to generate $2.8 billion, reflecting a 1.5% decline year-over-year due to less demand for illness season products [11]. Strategic Initiatives - McKesson has expanded its distribution network by opening new technologically advanced centers and acquiring stakes in oncology-related ventures, which are expected to enhance its service delivery and revenue growth [17][18]. - The company is leveraging advanced technologies, particularly AI, to improve service delivery and streamline operations [20]. Market Position and Performance - McKesson's shares have gained 24.1% this year, outperforming the industry, which has declined by 2.1% [21]. - The company is recognized for its extensive distribution network, which includes over 50,000 pharmacies and nearly 900,000 healthcare providers, enhancing its appeal to pharmaceutical manufacturers [19].

Core Viewpoint - Cencora (COR) is anticipated to report a year-over-year increase in earnings driven by higher revenues, with the actual results being a significant factor influencing its near-term stock price [1][2]. Earnings Expectations - The earnings report is scheduled for May 7, 2025, with expectations of quarterly earnings at $4.08 per share, reflecting a +7.4% change year-over-year, and revenues projected at $74.82 billion, up 9.4% from the previous year [3][2]. Estimate Revisions - The consensus EPS estimate has been revised 0.22% higher in the last 30 days, indicating a collective reassessment by analysts [4]. - The Most Accurate Estimate for Cencora is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +0.82% [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive Earnings ESP reading is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1 (Strong Buy), 2 (Buy), or 3 (Hold) [8]. - Cencora currently holds a Zacks Rank of 2, indicating a high likelihood of beating the consensus EPS estimate [11]. Historical Performance - Cencora has consistently beaten consensus EPS estimates, achieving this in the last four quarters, including a +6.57% surprise in the most recent quarter [12][13]. Conclusion - Cencora is positioned as a compelling candidate for an earnings beat, but investors should consider other influencing factors beyond earnings expectations [16].

Core Viewpoint - The article discusses the reliability of brokerage recommendations, particularly focusing on McKesson (MCK), and highlights the potential misalignment of interests between brokerage firms and retail investors [1][4][9]. Group 1: Brokerage Recommendations for McKesson - McKesson has an average brokerage recommendation (ABR) of 1.38, indicating a consensus between Strong Buy and Buy, based on 16 brokerage firms [2]. - Out of the 16 recommendations, 13 are Strong Buy, accounting for 81.3% of all recommendations [2]. Group 2: Limitations of Brokerage Recommendations - Relying solely on brokerage recommendations may not be advisable, as studies suggest they often fail to guide investors toward stocks with the highest potential for price appreciation [4]. - Analysts from brokerage firms tend to exhibit a strong positive bias in their ratings, issuing five "Strong Buy" recommendations for every "Strong Sell" [5][9]. - The interests of brokerage firms may not align with those of retail investors, leading to a lack of insight into future stock price movements [6]. Group 3: Zacks Rank as an Alternative - The Zacks Rank is presented as a more reliable indicator of a stock's near-term price performance, classifying stocks into five groups from Strong Buy to Strong Sell [7]. - Unlike the ABR, the Zacks Rank is based on earnings estimate revisions, which have shown a strong correlation with near-term stock price movements [10]. - The Zacks Rank is updated more frequently than the ABR, making it a timely tool for predicting future stock prices [11]. Group 4: Current Earnings Estimates for McKesson - The Zacks Consensus Estimate for McKesson's earnings for the current year remains unchanged at $32.76, indicating steady analyst views on the company's earnings prospects [12]. - The unchanged consensus estimate has resulted in a Zacks Rank of 3 (Hold) for McKesson, suggesting caution despite the Buy-equivalent ABR [13].