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Cencora (COR) Upgraded to Buy: Here's Why
ZACKS· 2025-12-02 18:01
Core Viewpoint - Cencora (COR) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook based on rising earnings estimates, which are crucial for stock price movements [1][2][4]. Earnings Estimates and Stock Price Impact - The Zacks rating system emphasizes the importance of earnings estimate revisions, which are strongly correlated with near-term stock price movements [3][5]. - Institutional investors utilize earnings estimates to determine the fair value of stocks, influencing their buying and selling decisions, which in turn affects stock prices [3]. Cencora's Earnings Outlook - For the fiscal year ending September 2026, Cencora is expected to earn $17.66 per share, consistent with the previous year's figure, while the Zacks Consensus Estimate has increased by 1.1% over the past three months [7]. Zacks Rank System - The Zacks Rank system categorizes stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [6][8]. - Cencora'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 [9].
3 Reasons Growth Investors Will Love McKesson (MCK)
ZACKS· 2025-05-14 17:45
Core Viewpoint - Investors are increasingly seeking growth stocks that demonstrate above-average growth potential, with McKesson (MCK) identified as a strong candidate due to its favorable growth metrics and Zacks Rank [1][2]. Group 1: Earnings Growth - McKesson has a historical EPS growth rate of 16%, with projected EPS growth of 12% for the current year, significantly outperforming the industry average of 7.5% [5]. Group 2: Asset Utilization - The company boasts an impressive asset utilization ratio of 4.95, indicating it generates $4.95 in sales for every dollar in assets, compared to the industry average of 0.76, showcasing superior efficiency [6]. Group 3: Sales Growth - McKesson's sales are expected to grow by 12% this year, far exceeding the industry average growth rate of 2.1%, highlighting its strong sales performance [7]. Group 4: Earnings Estimate Revisions - There has been a positive trend in earnings estimate revisions for McKesson, with the Zacks Consensus Estimate for the current year increasing by 2% over the past month, indicating favorable market sentiment [9]. Group 5: Overall Assessment - McKesson has achieved a Growth Score of A and holds a Zacks Rank of 2, suggesting it is a solid choice for growth investors and a potential outperformer in the market [11].