McKesson (MCK) closed at $508 in the latest trading session, marking a -0.03% move from the prior day. The stock outperformed the S&P 500, which registered a daily loss of 0.19%. At the same time, the Dow added 0.09%, and the tech-heavy Nasdaq lost 0.36%.

The prescription drug distributor's shares have seen a decrease of 9.4% over the last month, not keeping up with the Medical sector's gain of 1.44% and the S&P 500's gain of 2.06%.

Analysts and investors alike will be keeping a close eye on the performance of McKesson in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $7.09, reflecting a 13.8% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $89.57 billion, indicating a 16% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $32.07 per share and revenue of $353.29 billion, which would represent changes of +16.87% and +14.35%, respectively, from the prior year.

Investors should also take note of any recent adjustments to analyst estimates for McKesson. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there's been a 1.97% rise in the Zacks Consensus EPS estimate. At present, McKesson boasts a Zacks Rank of #3 (Hold).

With respect to valuation, McKesson is currently being traded at a Forward P/E ratio of 15.85. This expresses a discount compared to the average Forward P/E of 18.4 of its industry.

One should further note that MCK currently holds a PEG ratio of 1.18. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Medical - Dental Supplies industry had an average PEG ratio of 1.92 as trading concluded yesterday.

The Medical - Dental Supplies industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 170, which puts it in the bottom 33% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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