The latest trading session saw McKesson (MCK) ending at $513.67, denoting a +0.86% adjustment from its last day's close. The stock's change was more than the S&P 500's daily loss of 0.76%. Elsewhere, the Dow lost 0.75%, while the tech-heavy Nasdaq lost 1.01%.

The prescription drug distributor's stock has dropped by 2.03% in the past month, exceeding the Medical sector's loss of 3.35% and lagging the S&P 500's gain of 4.31%.

Investors will be eagerly watching for the performance of McKesson in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on November 6, 2024. The company's earnings per share (EPS) are projected to be $7.08, reflecting a 13.64% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $89.48 billion, indicating a 15.89% increase compared to the same quarter of the previous year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $32.07 per share and revenue of $353.04 billion. These totals would mark changes of +16.87% and +14.27%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for McKesson. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

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.

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, there's been a 0.04% rise in the Zacks Consensus EPS estimate. At present, McKesson boasts a Zacks Rank of #3 (Hold).

In terms of valuation, McKesson is presently being traded at a Forward P/E ratio of 15.88. This signifies a discount in comparison to the average Forward P/E of 16.8 for its industry.

We can also see that MCK currently has a PEG ratio of 1.19. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Medical - Dental Supplies was holding an average PEG ratio of 1.8 at yesterday's closing price.

The Medical - Dental Supplies industry is part of the Medical sector. This group has a Zacks Industry Rank of 176, putting it in the bottom 31% of all 250+ industries.