McKesson (MCK) closed at $502.12 in the latest trading session, marking a +1.42% move from the prior day. This move outpaced the S&P 500's daily gain of 0.71%. On the other hand, the Dow registered a gain of 1.03%, and the technology-centric Nasdaq increased by 0.6%.

Shares of the prescription drug distributor witnessed a loss of 2.1% over the previous month, beating the performance of the Medical sector with its loss of 3.33% and underperforming the S&P 500's gain of 6.41%.

The upcoming earnings release of McKesson will be of great interest to investors. The company's earnings report is expected on November 6, 2024. The company is predicted to post an EPS of $7.08, indicating a 13.64% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $89.48 billion, up 15.89% from the prior-year quarter.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $32.07 per share and a revenue of $353.04 billion, representing changes of +16.87% and +14.27%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for McKesson. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.15% lower. McKesson is currently sporting a Zacks Rank of #3 (Hold).

In the context of valuation, McKesson is at present trading with a Forward P/E ratio of 15.44. This expresses a discount compared to the average Forward P/E of 16.6 of its industry.

Investors should also note that MCK has a PEG ratio of 1.15 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As of the close of trade yesterday, the Medical - Dental Supplies industry held an average PEG ratio of 1.78.

The Medical - Dental Supplies industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 177, finds itself in the bottom 30% echelons of all 250+ industries.