Track market-moving stories before they get noisy

Posted by Defense World Staff on Jul 23rd, 2026

Dimensional Fund Advisors LP grew its stake in shares of McKesson Corporation (NYSE:MCK – Free Report) by 1.2% in the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 356,397 shares of the company’s stock after acquiring an additional 4,311 shares during the period. Dimensional Fund Advisors LP owned about 0.29% of McKesson worth $308,388,000 at the end of the most recent reporting period.

Several other institutional investors have also modified their holdings of the company. Parallel Advisors LLC grew its holdings in McKesson by 3.0% in the first quarter. Parallel Advisors LLC now owns 2,878 shares of the company’s stock valued at $2,491,000 after purchasing an additional 83 shares during the last quarter. Marshall & Sterling Wealth Advisors Inc. raised its stake in shares of McKesson by 41.1% during the 1st quarter. Marshall & Sterling Wealth Advisors Inc. now owns 508 shares of the company’s stock worth $440,000 after buying an additional 148 shares during the last quarter. SEB Asset Management AB acquired a new position in shares of McKesson during the 1st quarter worth $129,760,000. Swiss National Bank boosted its position in shares of McKesson by 6.3% in the 1st quarter. Swiss National Bank now owns 362,250 shares of the company’s stock worth $313,477,000 after buying an additional 21,360 shares in the last quarter. Finally, AIA Group Ltd purchased a new stake in shares of McKesson in the 1st quarter worth about $245,000. Hedge funds and other institutional investors own 85.07% of the company’s stock.

McKesson Stock Performance Shares of MCK opened at $813.95 on Thursday. The company has a market capitalization of $95.30 billion, a price-to-earnings ratio of 21.16, a PEG ratio of 1.36 and a beta of 0.31. McKesson Corporation has a 1 year low of $637.00 and a 1 year high of $999.00. The company’s 50 day simple moving average is $776.87 and its 200 day simple moving average is $838.43.

McKesson (NYSE:MCK – Get Free Report) last issued its quarterly earnings results on Thursday, May 7th. The company reported $11.69 earnings per share for the quarter, beating the consensus estimate of $11.56 by $0.13. McKesson had a negative return on equity of 345.35% and a net margin of 1.18%.The company had revenue of $96.30 billion during the quarter, compared to the consensus estimate of $101.35 billion. During the same period in the previous year, the firm posted $10.12 EPS. McKesson’s revenue was up 6.0% on a year-over-year basis. McKesson has set its FY 2027 guidance at 43.800-44.600 EPS. Equities analysts expect that McKesson Corporation will post 44.28 EPS for the current fiscal year.

McKesson Increases Dividend The firm also recently declared a quarterly dividend, which will be paid on Thursday, October 1st. Shareholders of record on Tuesday, September 1st will be paid a $0.94 dividend. This represents a $3.76 dividend on an annualized basis and a yield of 0.5%. The ex-dividend date of this dividend is Tuesday, September 1st. This is a positive change from McKesson’s previous quarterly dividend of $0.82. McKesson’s dividend payout ratio is 8.53%.

Analysts Set New Price Targets MCK has been the subject of a number of research reports. JPMorgan Chase & Co. cut their target price on shares of McKesson from $1,107.00 to $1,015.00 and set an “overweight” rating for the company in a research report on Friday, May 8th. Citigroup lowered their price target on shares of McKesson from $975.00 to $945.00 and set a “buy” rating on the stock in a research report on Thursday, May 14th. Deutsche Bank Aktiengesellschaft reissued a “buy” rating and set a $875.00 price objective on shares of McKesson in a research note on Friday, May 8th. TD Cowen cut their price objective on McKesson from $1,012.00 to $989.00 and set a “buy” rating for the company in a research report on Tuesday. Finally, Wells Fargo & Company reduced their target price on McKesson from $925.00 to $812.00 and set an “equal weight” rating on the stock in a research note on Tuesday, May 12th. Fourteen research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $959.00.

Check Out Our Latest Report on MCK

Key Stories Impacting McKesson Here are the key news stories impacting McKesson this week:

Positive Sentiment: McKesson raised its quarterly dividend by about 15% to $0.94 per share, signaling confidence in cash flow and capital returns. The increase was announced alongside a new payment schedule for shareholders of record on September 1. McKesson Corporation Raises Quarterly Dividend by 15% to $0.94 Per Share Positive Sentiment: Analysts remain constructive overall: TD Cowen lowered its price target slightly to $989 from $1,012 but kept a buy rating, implying meaningful upside from current levels. TD Cowen price target update via Benzinga Neutral Sentiment: Recent Zacks articles note that McKesson is drawing investor attention and is still viewed as a strong growth stock, but these pieces are largely commentary rather than new fundamental catalysts. Why McKesson Fell More Than Broader Market Neutral Sentiment: Other recent posts focus on stock performance over time and whether MCK is a buy now, but they do not appear to add a major new operational catalyst. Is Trending Stock McKesson Corporation (MCK) a Buy Now? Negative Sentiment: McKesson has been declining more than the broader market in recent sessions, reflecting near-term selling pressure even after strong longer-term fundamentals. Here’s Why McKesson (MCK) Fell More Than Broader Market Insiders Place Their Bets In other news, EVP Thomas L. Rodgers sold 699 shares of the stock in a transaction dated Tuesday, June 2nd. The shares were sold at an average price of $735.27, for a total transaction of $513,953.73. Following the transaction, the executive vice president directly owned 2,268 shares in the company, valued at $1,667,592.36. This represents a 23.56% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Michele Lau sold 3,550 shares of the stock in a transaction that occurred on Tuesday, May 26th. The stock was sold at an average price of $761.09, for a total transaction of $2,701,869.50. Following the transaction, the executive vice president directly owned 3,247 shares in the company, valued at approximately $2,471,259.23. This represents a 52.23% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 28,748 shares of company stock valued at $22,262,035 in the last quarter. Corporate insiders own 0.06% of the company’s stock.

McKesson Profile (Free Report)

McKesson Corporation (NYSE: MCK) is a global healthcare services and distribution company that supplies pharmaceuticals, medical-surgical products and health care technology solutions. Founded in 1833 and headquartered in Irving, Texas, McKesson operates across the drug distribution and healthcare services value chain, connecting manufacturers, pharmacies, hospitals and health systems to help manage the movement of medicines and clinical supplies.

The company’s core activities include pharmaceutical wholesale distribution and logistics, specialty pharmacy services, and the provision of medical-surgical supplies to acute and non-acute care providers.

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In the latest close session, McKesson (MCK - Free Report) was down 1.79% at $814.04. This change lagged the S&P 500's 0.14% loss on the day. Meanwhile, the Dow experienced a drop of 0.01%, and the technology-dominated Nasdaq saw a decrease of 0.57%.

Heading into today, shares of the prescription drug distributor had gained 8.5% over the past month, outpacing the Medical sector's gain of 5.8% and the S&P 500's gain of 0.25%.

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 August 5, 2026. The company's upcoming EPS is projected at $9.59, signifying a 16.10% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $104.39 billion, up 6.7% from the prior-year quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $44.28 per share and revenue of $432.77 billion. These totals would mark changes of +13.22% and +7.27%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for McKesson. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0% upward. Currently, McKesson is carrying a Zacks Rank of #2 (Buy).

Looking at its valuation, McKesson is holding a Forward P/E ratio of 18.72. This valuation marks a premium compared to its industry average Forward P/E of 17.11.

It's also important to note that MCK currently trades at a PEG ratio of 1.36. 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. MCK's industry had an average PEG ratio of 1.86 as of yesterday's close.

The Medical - Dental Supplies industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 74, finds itself in the top 31% echelons of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

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What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.

Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.

The Style Scores are broken down into four categories:

Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.

Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.

Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.

VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.

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To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.

As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.

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Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: McKesson (MCK - Free Report) McKesson Corporation, headquartered in Irving, TX, is one of the largest global healthcare companies and the leading pharmaceutical distributor in North America. The company operates across four business segments: U.S. Pharmaceutical, which distributes branded, generic, and specialty drugs; RxTS, which provides patient access, affordability, and third-party logistics services for biopharma manufacturers and payors; Medical-Surgical Solutions, supplying alternate-site providers such as physician offices and home health; and International, primarily focused in Canada. Specialty pharmaceuticals, oncology services, and GLP-1 medications for diabetes and obesity are key growth engines. In FY25, GLP-1 revenues alone reached nearly $41 billion.

MCK is a #2 (Buy) on the Zacks Rank, with a VGM Score of B.

Additionally, the company could be a top pick for growth investors. MCK has a Growth Style Score of B, forecasting year-over-year earnings growth of 13.2% for the current fiscal year.

Two analysts revised their earnings estimate higher in the last 60 days for fiscal 2027, while the Zacks Consensus Estimate has increased $0.01 to $44.28 per share. MCK also boasts an average earnings surprise of +3.1%.

With a solid Zacks Rank and top-tier Growth and VGM Style Scores, MCK should be on investors' short list.

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.

Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.

Zacks Premium also includes the Zacks Style Scores.

What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.

Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.

The Style Scores are broken down into four categories:

Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.

Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.

Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.

VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.

#1 (Strong Buy) stocks have produced an unmatched +23.94% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.

But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.

That's where the Style Scores come in.

You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.

As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.

For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: McKesson (MCK - Free Report) McKesson Corporation, headquartered in Irving, TX, is one of the largest global healthcare companies and the leading pharmaceutical distributor in North America. The company operates across four business segments: U.S. Pharmaceutical, which distributes branded, generic, and specialty drugs; RxTS, which provides patient access, affordability, and third-party logistics services for biopharma manufacturers and payors; Medical-Surgical Solutions, supplying alternate-site providers such as physician offices and home health; and International, primarily focused in Canada. Specialty pharmaceuticals, oncology services, and GLP-1 medications for diabetes and obesity are key growth engines. In FY25, GLP-1 revenues alone reached nearly $41 billion.

MCK is a #2 (Buy) on the Zacks Rank, with a VGM Score of A.

It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 18.14; value investors should take notice.

For fiscal 2027, two analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.01 to $44.28 per share. MCK boasts an average earnings surprise of +3.1%.

With a solid Zacks Rank and top-tier Value and VGM Style Scores, MCK should be on investors' short list.

The medical supply industry has entered the second half of 2026 from a position of strength, supported by resilient healthcare utilization, rising specialty care demand, increasing adoption of digital technologies and continued migration of patient care toward lower-cost outpatient settings.

Across major industry participants, management highlighted healthy procedure volumes, growing investment by healthcare providers, expanding specialty pharmaceutical utilization and stronger demand for technology-enabled workflow solutions. At the same time, companies continue to modernize supply chains through automation and AI while investing in value-added services that improve efficiency for providers and patients. However, the industry is not without challenges. Tariff-related cost pressures, pricing changes tied to healthcare policy, uneven demand in certain product categories and macroeconomic uncertainty continue to create operational complexity.

Companies with diversified business models, technology leadership, specialty exposure and disciplined capital allocation appear well positioned to capitalize on these favorable industry tailwinds through the remainder of 2026. Per a Markets and Markets report, the global medical supplies industry is expected to reach $163.5 billion by 2027, at a CAGR of 3.4% in the 2022-2027 period. Industry participants, such as McKesson (MCK - Free Report) , Cardinal Health (CAH - Free Report) , West Pharmaceutical Services (WST - Free Report) , Align Technology (ALGN - Free Report) and Henry Schein (HSIC - Free Report) , are likely to ride on the favorable macro trends amid lingering tariff risks.

Industry Description The global dental industry consists of companies that design, develop, make and market dental products, such as consumables, laboratory products and specialty items. Some of these companies also offer software and systems for practice management, patient education and office administration. Dental stocks have been drawing attention amid a recovery in sales following the weakness caused by pandemic-induced disruptions. The market has been recovering and maintaining its position.

Dental care is provided based on the advice and recommendations of the American Dental Association and the Centers for Disease Control and Prevention. Thanks to the rebound seen among companies in this space, patient volumes have been increasing steadily following the removal of COVID-19 restrictions.

Major Trends Shaping the Future of the Medical Dental Supplies Industry Specialty Care and Outpatient Healthcare Support Industry Growth: Healthcare delivery continues shifting toward specialty therapies, community-based care and non-acute treatment settings, creating sustained demand for medical distribution and support services. Specialty pharmaceuticals, oncology services, home-based care, ambulatory surgical centers and precision medicine remain among the industry's fastest-growing segments.

Companies are expanding provider networks, investing in specialty capabilities and strengthening patient access platforms to benefit from higher-acuity care migrating outside traditional hospitals. This structural transition supports long-term volume growth while increasing demand for integrated distribution, logistics and patient support solutions.

AI, Automation and Digital Innovations: Medical supply companies are increasingly leveraging AI, automation and cloud-based platforms to improve provider productivity, optimize supply chains and enhance patient engagement. Investments range from AI-enabled inventory planning and automated distribution centers to digital treatment planning, practice management software and workflow automation.

These technologies are helping providers improve efficiency, reduce administrative burdens and expand patient access while allowing distributors to enhance operational resilience and margins. As healthcare systems prioritize productivity improvements, technology-enabled service offerings are becoming an increasingly important source of competitive advantage and long-term growth.

Increasing Burden of Oral Diseases and an Aging Population: The U.S. dental equipment market is structurally supported by demographic aging and rising disease prevalence. Older cohorts account for a disproportionate share of restorative and surgical procedures, reflecting a higher incidence of caries, periodontal disease, and tooth loss. With the 65+ population expanding, demand visibility remains strong, reinforcing procedure volumes and equipment utilization across practices.

Growing Awareness and Emphasis on Preventive Care: Rising awareness of oral hygiene and preventive care is shifting demand toward early-stage interventions. Increased utilization of fluoride treatments, sealants, and prophylaxis products reflects a broader transition toward prevention-focused dentistry, supporting recurring revenue streams within consumables.

Minimally Invasive and Cosmetic Dentistry Trends: Patient preference is increasingly skewed toward minimally invasive and aesthetic procedures, including whitening and veneers. This trend is expanding demand for specialized materials and precision equipment, while also increasing procedure frequency and average spend per patient.

Expansion of Dental Clinics and Group Practices: The ongoing expansion of dental clinics, DSOs, and hospital-based practices is structurally increasing equipment demand. Higher patient throughput, standardized treatment protocols, and procurement efficiencies are driving consistent product utilization across growing care networks.

Regional Market Growth Drivers: Emerging markets, particularly in Asia-Pacific, are exhibiting above-average growth due to rising healthcare expenditure, improving access, and supportive policy frameworks. Dental tourism and expanding middle-class demand are further accelerating equipment adoption in these regions

Policy Changes and Ongoing Cost Inflation: Despite healthy demand, companies continue navigating an increasingly complex operating environment. Tariffs, healthcare policy changes, pharmaceutical pricing reforms under the Inflation Reduction Act, higher freight costs and inflationary pressures remain important headwinds.

Several companies also cited softer demand in select product categories, such as respiratory diagnostics following a mild flu season, while competitive pricing in certain technology markets continued to weigh on margins. Although management remains confident in mitigating these pressures through pricing actions, productivity initiatives and supply-chain improvements, these headwinds are likely to remain through the second half of 2026.

Zacks Industry Rank The Zacks Medical Dental Supplies industry falls within the broader Zacks Medical sector.

It carries a Zacks Industry Rank #68, which places it in the top 28% of 243 Zacks industries.

The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all member stocks, indicates dull near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Before we present a few dental supply stocks that you may want to consider for your portfolio, let’s take a look at the industry’s recent stock-market performance and valuation picture.

Industry Performance The industry has outperformed its sector but underperformed the S&P 500 composite in the past year.

Stocks in this industry collectively gained 10.2% compared with the Zacks Medical sector’s rise of 9.6%. The S&P 500 has surged 24.2% in the same time frame.

One-Year Price Performance

Industry's Current Valuation On the basis of the forward 12-month price-to-earnings (P/E), which is commonly used for valuing medical stocks, the industry is currently trading at 16.83X compared with the S&P 500’s 21.23X and the sector’s 21.07X.

Over the past five years, the industry has traded as high as 21.75X and as low as 15.53X, with the median being 18.44X, as the charts show.

Price-to-Earnings Forward Twelve Months (F12M)

Price-to-Earnings Forward Twelve Months (F12M)

5 Key Dental Supply Picks McKessonremains one of the strongest beneficiaries of the industry's accelerating shift toward specialty care and technology-enabled healthcare services. The company continues to expand its oncology and multispecialty ecosystem through the integration of Core Ventures and PRISM Vision, broadening its presence across community oncology, retina and ophthalmology.

Management also highlighted continued momentum in biopharma services, where rising demand for access and affordability programs, particularly for complex specialty therapies, is strengthening its value proposition. AI-enabled workflow tools, automation and advanced distribution capabilities are further improving physician productivity, patient access and supply-chain efficiency. Investments in AI-powered inventory planning, highly automated distribution centers and technology infrastructure are expected to support operating leverage while enhancing service reliability.

McKesson's disciplined capital allocation, robust free cash flow generation and continued investment in automation reinforce confidence in sustained earnings growth. However, the company continues to operate in a dynamic policy environment, with pharmaceutical pricing reforms, evolving utilization patterns and continued investments in technology infrastructure likely to influence near-term profitability.

The Zacks Consensus Estimate for fiscal 2027 revenues indicates an improvement of 7.3% from the year-ago reported figure, while the same for earnings implies a rise of 13.2%. MCK carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Price and Consensus: MCK

Cardinal Healthhas entered the second half of 2026 with strong momentum, driven by broad-based pharmaceutical demand and rapid expansion across its higher-growth businesses. Specialty pharmaceuticals remain the primary growth engine, with specialty revenues expected to exceed $50 billion during fiscal 2026, supported by robust demand for oncology therapies, GLP-1 products and branded medicines.

Beyond pharmaceutical distribution, the company continues to benefit from accelerating growth in At-Home Solutions, Nuclear and Precision Health Solutions and OptiFreight Logistics, reflecting increasing demand for decentralized care, theranostics and healthcare supply-chain optimization. Strategic acquisitions, including Advanced Diabetes Supply, are expanding Cardinal Health's chronic care capabilities while strengthening its long-term growth platform.

Operational discipline and resilient execution have also enabled the company to navigate complex market conditions effectively. Nevertheless, tariff-related costs remain a significant headwind for the Global Medical Products and Distribution segment, while the Navista goodwill impairment underscores execution risks within certain growth initiatives. Future performance will also depend on continued success in managing supply-chain costs and evolving healthcare policy changes.

The Zacks Consensus Estimate for fiscal 2026 revenues indicates an improvement of 15.1% from the year-ago reported figure, while the same for earnings implies a rise of 30.7%. CAH carries a Zacks Rank #2 at present.

Price and Consensus: CAH

West PharmaceuticalServices remainswell positioned to benefit from long-term growth in biologics and high-value injectable therapies, supported by sustained demand for advanced drug containment and delivery solutions. Management emphasized continued strength across its High-Value Products portfolio, with increasing customer adoption of premium components and proprietary delivery technologies driving favorable product mix and margin expansion.

The company's strategy is also supported by healthy demand for biologics, expanding capacity investments and growing participation in next-generation injectable medicines. This positions West Pharma to capitalize on structural trends in pharmaceutical innovation. Operational improvements and disciplined manufacturing execution continue to strengthen profitability while reinforcing customer relationships with leading biopharma companies.

However, management acknowledged that macroeconomic uncertainty, customer inventory normalization in selected product categories and the pace of new drug commercialization could create periodic revenue variability. Despite these risks, West Pharma's innovation-led portfolio, diversified customer base and focus on high-value solutions provide a solid foundation for continued growth through the remainder of 2026.

The Zacks Consensus Estimate for 2026 revenues indicates an improvement of 8.4% from the year-ago reported figure, while the same for earnings implies a rise of 18%. WST carries a Zacks Rank of 2 at present.

Price and Consensus: WST

Align Technologyis well positioned to benefit from the continued digitization of orthodontics and the growing adoption of clear aligner therapy. The company delivered record Invisalign case shipments in the first quarter, supported by broad-based growth across adults, teens and younger patients, while international markets continued to outpace North America. Management also highlighted strong momentum in dental service organizations (DSOs), which are increasingly adopting Align Technology's integrated digital platform to improve clinical workflows and patient conversion.

The expanding installed base of iTero scanners, rising adoption of exocad software and the rollout of restorative treatment solutions further strengthen Align Technology's digital ecosystem and create opportunities beyond orthodontics. Financing programs, doctor subscription models and treatment planning services are also improving affordability, clinician confidence and utilization, supporting long-term case growth. However, softer patient traffic in parts of the U.S. retail channel, pricing pressure from lower-cost scanner offerings and uneven macroeconomic conditions across certain markets remain key challenges to monitor through the remainder of 2026.

The Zacks Consensus Estimate for 2026 revenues indicates an improvement of 3.7% from the year-ago reported figure, while the same for earnings implies a rise of 8.1%. ALGN carries a Zacks Rank #2 at present.

Price and Consensus: ALGN

Henry Scheinhas entered the second half of 2026 with improving operating momentum, supported by market share gains, expanding digital capabilities and a sharpened focus on operational excellence. Management sees healthy demand across dental markets, with continued investments by dental service organizations (DSOs) and practitioners supporting equipment, merchandise and specialty product sales.

The company's integrated portfolio — including distribution, specialty products, practice management software and value-added services — positions it to benefit from customers' increasing focus on productivity and workflow optimization. AI-enabled practice management solutions, cloud-based software adoption and ongoing value creation initiatives are expected to drive margin expansion while strengthening customer engagement. Growth in value implants, home solutions and non-acute care channels provides additional tailwinds, while restructuring initiatives and supply-chain efficiencies should further enhance profitability.

Nevertheless, Henry Schein continues to face pricing pressure in digital equipment from new market entrants, softer demand for respiratory diagnostic products following a mild flu season, and cost inflation from higher freight and merchandise prices. Effective execution of its transformation initiatives will remain critical to sustaining earnings growth through the rest of 2026.

The Zacks Consensus Estimate for 2026 revenues indicates an improvement of 4.1% from the year-ago reported figure, while the same for earnings implies a rise of 7%. HSIC carries a Zacks Rank of 2 at present.

Price and Consensus: HSIC

McKesson (MCK - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.

Shares of this prescription drug distributor have returned +3% over the past month versus the Zacks S&P 500 composite's +1.6% change. The Zacks Medical - Dental Supplies industry, to which McKesson belongs, has gained 6.7% over this period. Now the key question is: Where could the stock be headed in the near term?

Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.

Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.

We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

McKesson is expected to post earnings of $9.59 per share for the current quarter, representing a year-over-year change of +16.1%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.2%.

For the current fiscal year, the consensus earnings estimate of $44.28 points to a change of +13.2% from the prior year. Over the last 30 days, this estimate has remained unchanged.

For the next fiscal year, the consensus earnings estimate of $49.95 indicates a change of +12.8% from what McKesson is expected to report a year ago. Over the past month, the estimate has remained unchanged.

With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for McKesson.

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.

In the case of McKesson, the consensus sales estimate of $104.39 billion for the current quarter points to a year-over-year change of +6.7%. The $432.83 billion and $464.69 billion estimates for the current and next fiscal years indicate changes of +7.3% and +7.4%, respectively.

Last Reported Results and Surprise HistoryMcKesson reported revenues of $96.3 billion in the last reported quarter, representing a year-over-year change of +6%. EPS of $11.69 for the same period compares with $10.12 a year ago.

Compared to the Zacks Consensus Estimate of $101.92 billion, the reported revenues represent a surprise of -5.52%. The EPS surprise was +1.12%.

The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates two times over this period.

ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.

While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.

The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

McKesson is graded A on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about McKesson. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.

Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? McKesson (MCK - Free Report) , which belongs to the Zacks Medical - Dental Supplies industry, could be a great candidate to consider.

This prescription drug distributor has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 0.72%.

For the most recent quarter, McKesson was expected to post earnings of $11.56 per share, but it reported $11.69 per share instead, representing a surprise of 1.12%. For the previous quarter, the consensus estimate was $9.31 per share, while it actually produced $9.34 per share, a surprise of 0.32%.

Price and EPS Surprise

Thanks in part to this history, there has been a favorable change in earnings estimates for McKesson lately. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the stock is positive, which is a great indicator of an earnings beat, particularly when combined with its solid Zacks Rank.

Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

McKesson currently has an Earnings ESP of +7.73%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #3 (Hold) indicates that another beat is possibly around the corner. We expect the company's next earnings report to be released on August 5, 2026.

When the Earnings ESP comes up negative, investors should note that this will reduce the predictive power of the metric. But, a negative value is not indicative of a stock's earnings miss.

Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable even if they end up missing the consensus estimate.

Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Key Takeaways McKesson posted 35% oncology revenue growth and 53% operating profit growth in fiscal Q4 2026.MCK's pharma segment profit rose 11% as specialty drug demand and GLP-1 distribution stayed strong.RxTS revenues grew 12%, though IRA pricing pressure and acquisition risks may challenge future growth. McKesson’s (MCK - Free Report) prospects are being driven by robust growth in specialty distribution, oncology services and biopharma solutions. Earnings are also improving on the back of ongoing operational efficiency and capital discipline despite persistent margin pressures and volatility across certain segments.

Shares of this Zacks Rank #3 (Hold) company have lost 6.4% so far this year compared with the industry's 2.7% decline. The S&P 500 has increased 9.7% in the said time frame.

MCK is one of the leading pharmaceutical distributors in North America, with a market capitalization of $88.46 billion. It forecasts 13.7% earnings growth over the next five fiscal years. The company’s earnings surpassed estimates in each of the trailing four quarters, the average beat being 3.09%.

Image Source: Zacks Investment Research

Factors Favoring MCK StockOncology and Multispecialty Platform Drives Long-Term Growth: McKesson's oncology and multispecialty segment is increasingly emerging as one of its most durable long-term growth drivers.This segment delivered 35% revenue growth and 53% operating profit growth in fourth quarter of fiscal 2026.

Even after adjusting for acquisition benefits from PRISM Vision and Core Ventures, organic operating profit expanded 13%, indicating strong underlying demand. The U.S. Oncology Network added more than 570 providers in fiscal 2026, marking the largest annual provider addition since 2010.

Beyond distribution, McKesson is increasingly embedding technology solutions such as Ambient Scribe AI and Ontada analytics to improve physician productivity and deepen relationships with providers. The expanding community-care ecosystem supports recurring specialty revenue growth while positioning the company to benefit from shift of specialty care from hospital settings towards community settings over the long term.

Strong Specialty Pharmaceutical Momentum: McKesson’s North American Pharmaceutical segment remains highly resilient despite pricing pressure from branded drug deflation. Segment operating profit increased 11% to $980 million, supported by continued specialty drug demand, health-system growth and operating efficiency gains. Particularly notable was continued momentum in GLP-1 therapies, where quarterly distribution revenues reached $14 billion, growing 22% year over year.

Management highlighted that lower branded drug prices and softer sequential GLP-1 volumes had zero impact on operating profit, underscoring the strength of McKesson’s fee-based distribution economics.

With specialty pharmaceuticals remaining the fastest-growing healthcare category and biosimilars adoption increasing steadily, McKesson appears well positioned to sustain above-market earnings growth while leveraging its massive pharmaceutical distribution network.

Prescription Technology Solutions Support Margins: McKesson’s Prescription Technology Solutions (RxTS) business is becoming an increasingly valuable earnings contributor as healthcare reimbursement complexity rises. In the fiscal fourth quarter, segment revenues grew 12%, while operating profit increased 13%, supported by strong demand for access, affordability and prior authorization services.

During the annual verification season, McKesson supported a record 3.4 million patients, while technology investments improved productivity, allowing each employee to serve 120 additional patients versus last year.

Management also introduced an integrated specialty access platform that combines benefits verification, prior authorization and affordability support into a single workflow. As specialty therapies, GLP-1 adoption and high-cost drugs continue to see rising demand, McKesson’s technology-enabled service ecosystem creates a competitive moat with structurally stronger margins than traditional pharmaceutical distribution businesses.

Factors That May Offset the Gains for MCKIRA-Driven Drug Pricing Pressure Creates Top-Line Headwinds: One of McKesson’s biggest structural challenges remains pricing pressure created by pharmaceutical policy changes, particularly the Inflation Reduction Act (IRA). Management disclosed that price reductions by branded manufacturer lowered North American Pharmaceutical revenue growth by approximately 3 percentage points during the fiscal fourth quarter. The company continues to expect similar pricing headwinds throughout fiscal 2027.

While McKesson’s fee-based contracts largely protect profitability, lower drug prices directly suppress reported revenue growth and may weaken investor perception of underlying business momentum. This issue becomes increasingly important because specialty pharmaceuticals account for a growing portion of McKesson’s business. Continued government intervention in drug pricing could create a structural environment where strong demand and prescription growth fail to translate proportionally into top-line expansion, potentially compressing valuation multiples over time.

Technology Solutions Growth Remains Uncertain: Although RxTS remains a high-margin growth business, management explicitly warned that future revenues and operating profit growth will be increasingly non-linear and unpredictable.

Approximately 55% of segment revenues comes from the 3PL business, which depends heavily on factors such as new drug launch timing, program launches, payer utilization trends, product maturity cycles, formulary changes and supply dynamics. Management guided fiscal 2027 revenue growth of only 2.5-6.5%, significantly slower than historical performance despite continued strong demand for access services.

As pharmaceutical manufacturers continuously adjust commercialization strategies, program support requirements may fluctuate materially, resulting in an uncertain quarterly performance. This is likely to reduce earnings visibility in one of McKesson’s most attractive technology-driven segments.

Acquisition-Led Growth Strategy Increases Integration Risk: McKesson’s accelerating expansion strategy depends on acquisitions and inorganic growth initiatives. In fiscal 2026, acquisitions including PRISM Vision and Core Ventures accounted for approximately 34% of operating profit growth in the oncology segment. This highlights growing dependence on purchased growth rather than purely organic expansion.

Management also indicated an active pipeline of additional oncology provider acquisitions, suggesting M&A will remain a central part of the growth algorithm. While integration has progressed smoothly so far, acquisition-heavy growth strategies introduce valuation risk, execution complexity and integration uncertainty.

McKesson is simultaneously funding acquisitions, executing large share repurchases and managing the Medical-Surgical separation, creating capital allocation complexity. If acquired assets underperform or future deals become expensive, sustaining double-digit EPS growth may become increasingly challenging.

Estimate Trends for MCKMcKesson is witnessing a positive estimate revision trend for 2026. In the past 30 days, the Zacks Consensus Estimate for its earnings per share has improved 1 cent to $44.28.

The Zacks Consensus Estimate for the company’s first-quarter fiscal 2027 revenues and earnings per share is pegged at $104.39 billion and $9.63, respectively. The estimate for revenues indicates a 6.7% improvement from the year-ago quarter’s reported number, while that for earnings implies a 16.6% gain.

MCK’s Zacks Rank & Key PicksCurrently, McKesson has a Zacks Rank #3 (Hold).

Some better-ranked stocks from the broader medical space are BrightSpring Health (BTSG - Free Report) , Globus Medical (GMED - Free Report) and West Pharmaceutical (WST - Free Report) .

BrightSpring Health, currently sporting a Zacks Rank #1 (Strong Buy), reported first-quarter 2026 adjusted earnings per share (EPS) of 39 cents, which beat the Zacks Consensus Estimate by 34.5%. Revenues of $3.61 billion surpassed the Zacks Consensus Estimate by 8.35%. You can see the complete list of today’s Zacks #1 Rank stocks here.

BrightSpring Health has an estimated long-term earnings growth rate of 46.5%. BTSG’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 14.6%.

Globus Medical, currently carrying a Zacks Rank #2 (Buy), reported a first-quarter 2026 adjusted EPS of $1.12, which surpassed the Zacks Consensus Estimate by 22.1%. Revenues of $759.9 million beat the Zacks Consensus Estimate by 4.0%.

GMED has an estimated long-term earnings growth rate of 10.2%. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 26.3%.

West Pharmaceutical, carrying a Zacks Rank #2 at present, reported first-quarter 2026 EPS of $2.13, which beat the Zacks Consensus Estimate by 26.8%. Revenues of $844.9 million surpassed the Zacks Consensus Estimate by 8.5%.

West Pharmaceutical has an estimated long-term earnings growth rate of 13.9%. WST’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 19.4%.

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Stock to Watch: McKesson (MCK - Free Report) McKesson Corporation, headquartered in Irving, TX, is one of the largest global healthcare companies and the leading pharmaceutical distributor in North America. The company operates across four business segments: U.S. Pharmaceutical, which distributes branded, generic, and specialty drugs; RxTS, which provides patient access, affordability, and third-party logistics services for biopharma manufacturers and payors; Medical-Surgical Solutions, supplying alternate-site providers such as physician offices and home health; and International, primarily focused in Canada. Specialty pharmaceuticals, oncology services, and GLP-1 medications for diabetes and obesity are key growth engines. In FY25, GLP-1 revenues alone reached nearly $41 billion.

MCK is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.

Momentum investors should take note of this Medical stock. MCK has a Momentum Style Score of B, and shares are up 1.7% over the past four weeks.

Five analysts revised their earnings estimate upwards in the last 60 days for fiscal 2027. The Zacks Consensus Estimate has increased $0.07 to $44.28 per share. MCK boasts an average earnings surprise of +3.1%.

With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, MCK should be on investors' short list.

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Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.

Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.

Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.

VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.

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Stock to Watch: McKesson (MCK - Free Report) McKesson Corporation, headquartered in Irving, TX, is one of the largest global healthcare companies and the leading pharmaceutical distributor in North America. The company operates across four business segments: U.S. Pharmaceutical, which distributes branded, generic, and specialty drugs; RxTS, which provides patient access, affordability, and third-party logistics services for biopharma manufacturers and payors; Medical-Surgical Solutions, supplying alternate-site providers such as physician offices and home health; and International, primarily focused in Canada. Specialty pharmaceuticals, oncology services, and GLP-1 medications for diabetes and obesity are key growth engines. In FY25, GLP-1 revenues alone reached nearly $41 billion.

MCK is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.

It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 17.25; value investors should take notice.

Four analysts revised their earnings estimate higher in the last 60 days for fiscal 2027, while the Zacks Consensus Estimate has increased $0.06 to $44.28 per share. MCK also boasts an average earnings surprise of +3.1%.

With a solid Zacks Rank and top-tier Value and VGM Style Scores, MCK should be on investors' short list.

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IRVING, Texas--(BUSINESS WIRE)--McKesson Corporation (NYSE: MCK) will release its first quarter fiscal 2027 financial results after market close on Wednesday, August 5, 2026. The company will host a live webcast of the earnings conference call for investors at 4:30 PM Eastern Time to review its financial results.

The live and archived audio webcast will be available on McKesson’s Investor Relations website.

About McKesson Corporation

McKesson Corporation is a diversified healthcare services leader dedicated to advancing health outcomes for patients everywhere. Our teams partner with biopharma companies, care providers, pharmacies, manufacturers, governments, and others to deliver insights, products and services to help make quality care more accessible and affordable. Learn more about how McKesson is impacting virtually every aspect of healthcare at McKesson.com and read Stories & Insights.

We routinely use our website, investor.mckesson.com, to post information that may be material to investors, such as business developments, earnings, and financial performance, as well as presentation materials and details for upcoming and past events.

More News From McKesson Corporation

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In the latest trading session, McKesson (MCK - Free Report) closed at $750.63, marking a -3.74% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 1.09% for the day. On the other hand, the Dow registered a gain of 0.14%, and the technology-centric Nasdaq increased by 1.91%.

The prescription drug distributor's shares have seen an increase of 3.33% over the last month, surpassing the Medical sector's gain of 3.16% and the S&P 500's gain of 0.29%.

Investors will be eagerly watching for the performance of McKesson in its upcoming earnings disclosure. In that report, analysts expect McKesson to post earnings of $9.63 per share. This would mark year-over-year growth of 16.59%. In the meantime, our current consensus estimate forecasts the revenue to be $104.39 billion, indicating a 6.7% growth compared to the corresponding quarter of the prior year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $44.28 per share and a revenue of $432.83 billion, indicating changes of +13.22% and +7.29%, respectively, from the former year.

Investors should also take note of any recent adjustments to analyst estimates for McKesson. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.03% upward. 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 17.61. Its industry sports an average Forward P/E of 15.32, so one might conclude that McKesson is trading at a premium comparatively.

Also, we should mention that MCK has a PEG ratio of 1.28. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Medical - Dental Supplies industry held an average PEG ratio of 1.58.

The Medical - Dental Supplies industry is part of the Medical sector. This group has a Zacks Industry Rank of 75, putting it in the top 31% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

In the latest close session, McKesson (MCK - Free Report) was down 1.48% at $822.63. The stock trailed the S&P 500, which registered a daily loss of 0.04%. Elsewhere, the Dow saw a downswing of 0.57%, while the tech-heavy Nasdaq appreciated by 0.04%.

The stock of prescription drug distributor has fallen by 3.51% in the past month, lagging the Medical sector's loss of 0.72% and the S&P 500's gain of 12.24%.

The investment community will be paying close attention to the earnings performance of McKesson in its upcoming release. The company is slated to reveal its earnings on May 7, 2026. In that report, analysts expect McKesson to post earnings of $11.56 per share. This would mark year-over-year growth of 14.23%. In the meantime, our current consensus estimate forecasts the revenue to be $101.88 billion, indicating a 12.18% growth compared to the corresponding quarter of the prior year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $39.02 per share and a revenue of $409.05 billion, signifying shifts of +18.06% and +13.92%, respectively, from the last year.

Investors should also note any recent changes to analyst estimates for McKesson. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.45% higher. As of now, McKesson holds a Zacks Rank of #3 (Hold).

With respect to valuation, McKesson is currently being traded at a Forward P/E ratio of 18.87. This signifies a premium in comparison to the average Forward P/E of 15.78 for its industry.

Investors should also note that MCK has a PEG ratio of 1.2 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As the market closed yesterday, the Medical - Dental Supplies industry was having an average PEG ratio of 1.63.

The Medical - Dental Supplies industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 55, which puts it in the top 23% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

Wall Street analysts expect McKesson (MCK - Free Report) to post quarterly earnings of $11.56 per share in its upcoming report, which indicates a year-over-year increase of 14.2%. Revenues are expected to be $101.92 billion, up 12.2% from the year-ago quarter.

Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted downward by 0.5% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.

Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements of a stock.

While it's common for investors to rely on consensus earnings and revenue estimates for assessing how the business may have performed during the quarter, exploring analysts' forecasts for key metrics can yield valuable insights.

With that in mind, let's delve into the average projections of some McKesson metrics that are commonly tracked and projected by analysts on Wall Street.

Analysts forecast 'Revenue- North American Pharmaceutical' to reach $84.12 billion. The estimate indicates a change of +1.2% from the prior-year quarter.

The collective assessment of analysts points to an estimated 'Revenue- Medical-Surgical Solutions' of $2.94 billion. The estimate points to a change of +3% from the year-ago quarter.

Analysts' assessment points toward 'Revenue- Prescription Technology Solutions' reaching $1.47 billion. The estimate suggests a change of +9.8% year over year.

Based on the collective assessment of analysts, 'Adjusted Operating Profit- Medical-Surgical Solutions' should arrive at $284.53 million. The estimate is in contrast to the year-ago figure of $285.00 million.

The combined assessment of analysts suggests that 'Adjusted Operating Profit- North American Pharmaceutical' will likely reach $991.34 million. The estimate is in contrast to the year-ago figure of $1.05 billion.

Analysts predict that the 'Adjusted Operating Profit- Prescription Technology Solutions' will reach $310.20 million. The estimate compares to the year-ago value of $285.00 million.

View all Key Company Metrics for McKesson here>>>

Over the past month, McKesson shares have recorded returns of -8% versus the Zacks S&P 500 composite's +10% change. Based on its Zacks Rank #3 (Hold), MCK will likely exhibit a performance that aligns with the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

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IRVING, Texas--(BUSINESS WIRE)--McKesson Corporation (NYSE: MCK) has released its fiscal 2026 fourth quarter financial results. Results can be accessed on McKesson’s Investor Relations website at investor.mckesson.com/financials/quarterly-results.

As previously announced, the company will host a live webcast of the earnings conference call for investors today, Thursday, May 7, at 4:30 PM ET to review its financial results. The audio webcast of the conference call will be available live and archived on McKesson's Investor Relations website, along with the company’s earnings press release, financial tables, and slide presentation. Additional information about upcoming events for the investor community can be found at investor.mckesson.com/events-and-presentations.

About McKesson Corporation

McKesson Corporation is a diversified healthcare services leader dedicated to advancing health outcomes for patients everywhere. Our teams partner with biopharma companies, care providers, pharmacies, manufacturers, governments, and others to deliver insights, products and services to help make quality care more accessible and affordable. Learn more about how McKesson is impacting virtually every aspect of healthcare at McKesson.com and read Stories & Insights.

We routinely use our website, investor.mckesson.com, to post information that may be material to investors, such as business developments, earnings, and financial performance, as well as presentation materials and details for upcoming and past events.

More News From McKesson Corporation

Back to Newsroom

McKesson (MCK - Free Report) came out with quarterly earnings of $11.69 per share, beating the Zacks Consensus Estimate of $11.56 per share. This compares to earnings of $10.12 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +1.14%. A quarter ago, it was expected that this prescription drug distributor would post earnings of $9.31 per share when it actually produced earnings of $9.34, delivering a surprise of +0.32%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

McKesson, which belongs to the Zacks Medical - Dental Supplies industry, posted revenues of $96.3 billion for the quarter ended March 2026, missing the Zacks Consensus Estimate by 5.52%. This compares to year-ago revenues of $90.82 billion. The company has topped consensus revenue estimates two times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

McKesson shares have lost about 9.3% since the beginning of the year versus the S&P 500's gain of 7.6%.

What's Next for McKesson?While McKesson has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for McKesson was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $9.68 on $106.4 billion in revenues for the coming quarter and $44.24 on $442.8 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical - Dental Supplies is currently in the top 21% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

One other stock from the same industry, Staar Surgical (STAA - Free Report) , is yet to report results for the quarter ended March 2026. The results are expected to be released on May 13.

This maker of implantable lenses is expected to post quarterly earnings of $0.13 per share in its upcoming report, which represents a year-over-year change of +125%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Staar Surgical's revenues are expected to be $91.8 million, up 115.5% from the year-ago quarter.

McKesson Corporation (MCK) Q4 2026 Earnings Call Transcript

2 hours ago

MSA Safety Incorporporated (NYSE:MSA) CFO Acquires $71,093.12 in StockMarketBeat

MSA Safety Incorporporated (NYSE:MSA - Get Free Report) CFO Julie Beck bought 448 shares of the stock in a transaction dated Thursday, June 11th. The stock was acquired at an average price of $158.69 per share, with a total value of $71,093.12. Following the completion of the purchase, the chief financial officer owned 3,825 shares of the company's stock, valued at $606,989.25. This represents a 13.27% increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available through this link.

NYSE:MSA

Read MSA Safety Incorporporated (NYSE:MSA) CFO Acquires $71,093.12 in Stock

2 hours ago

Insider Selling: NBT Bancorp (NASDAQ:NBTB) Director Sells 2,100 Shares of StockMarketBeat

NBT Bancorp Inc. (NASDAQ:NBTB - Get Free Report) Director Heidi Hoeller sold 2,100 shares of the business's stock in a transaction that occurred on Friday, June 12th. The shares were sold at an average price of $48.03, for a total transaction of $100,863.00. Following the transaction, the director owned 11,560 shares of the company's stock, valued at approximately $555,226.80. This represents a 15.37% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink.

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Read Insider Selling: NBT Bancorp (NASDAQ:NBTB) Director Sells 2,100 Shares of Stock

2 hours ago

Douglas Milne Sells 1,600 Shares of IGM Financial (TSE:IGM) StockMarketBeat

IGM Financial Inc. (TSE:IGM - Get Free Report) Director Douglas Milne sold 1,600 shares of the business's stock in a transaction that occurred on Tuesday, June 9th. The stock was sold at an average price of C$80.61, for a total value of C$128,976.00. Following the sale, the director directly owned 800 shares in the company, valued at C$64,488. The trade was a 66.67% decrease in their ownership of the stock.

TSE:IGM

Read Douglas Milne Sells 1,600 Shares of IGM Financial (TSE:IGM) Stock

2 hours ago

GlobalFoundries (NASDAQ:GFS) Insider Michael James Hogan Sells 2,800 SharesMarketBeat

GlobalFoundries Inc. (NASDAQ:GFS - Get Free Report) insider Michael James Hogan sold 2,800 shares of GlobalFoundries stock in a transaction on Wednesday, June 10th. The shares were sold at an average price of $75.17, for a total value of $210,476.00. Following the transaction, the insider owned 6,695 shares in the company, valued at $503,263.15. This trade represents a 29.49% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

NASDAQ:GFS

Read GlobalFoundries (NASDAQ:GFS) Insider Michael James Hogan Sells 2,800 Shares

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McKesson (MCK - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.

Shares of this prescription drug distributor have returned -14.6% over the past month versus the Zacks S&P 500 composite's +8.6% change. The Zacks Medical - Dental Supplies industry, to which McKesson belongs, has lost 10.5% over this period. Now the key question is: Where could the stock be headed in the near term?

Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.

Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.

We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

McKesson is expected to post earnings of $9.48 per share for the current quarter, representing a year-over-year change of +14.8%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.7%.

The consensus earnings estimate of $44.29 for the current fiscal year indicates a year-over-year change of +13.2%. This estimate has changed +0.1% over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $49.94 indicates a change of +12.8% from what McKesson is expected to report a year ago. Over the past month, the estimate has changed +0.2%.

Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, McKesson is rated Zacks Rank #3 (Hold).

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.

For McKesson, the consensus sales estimate for the current quarter of $104.95 billion indicates a year-over-year change of +7.3%. For the current and next fiscal years, $434.7 billion and $466.78 billion estimates indicate +7.8% and +7.4% changes, respectively.

Last Reported Results and Surprise HistoryMcKesson reported revenues of $96.3 billion in the last reported quarter, representing a year-over-year change of +6%. EPS of $11.69 for the same period compares with $10.12 a year ago.

Compared to the Zacks Consensus Estimate of $101.92 billion, the reported revenues represent a surprise of -5.52%. The EPS surprise was +1.12%.

The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates two times over this period.

ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.

While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.

As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

McKesson is graded A on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about McKesson. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

McKesson (MCK - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.

Shares of this prescription drug distributor have returned -9.7% over the past month versus the Zacks S&P 500 composite's +5.1% change. The Zacks Medical - Dental Supplies industry, to which McKesson belongs, has lost 4.9% over this period. Now the key question is: Where could the stock be headed in the near term?

Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.

Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.

Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.

For the current quarter, McKesson is expected to post earnings of $9.48 per share, indicating a change of +14.8% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.7% over the last 30 days.

The consensus earnings estimate of $44.29 for the current fiscal year indicates a year-over-year change of +13.2%. This estimate has changed +0.1% over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $49.94 indicates a change of +12.8% from what McKesson is expected to report a year ago. Over the past month, the estimate has changed +0.2%.

With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for McKesson.

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.

For McKesson, the consensus sales estimate for the current quarter of $104.95 billion indicates a year-over-year change of +7.3%. For the current and next fiscal years, $434.7 billion and $466.78 billion estimates indicate +7.8% and +7.4% changes, respectively.

Last Reported Results and Surprise HistoryMcKesson reported revenues of $96.3 billion in the last reported quarter, representing a year-over-year change of +6%. EPS of $11.69 for the same period compares with $10.12 a year ago.

Compared to the Zacks Consensus Estimate of $101.92 billion, the reported revenues represent a surprise of -5.52%. The EPS surprise was +1.12%.

The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates two times over this period.

ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.

Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.

As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

McKesson is graded A on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about McKesson. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.

The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.

It also includes access to the Zacks Style Scores.

What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.

Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.

The Style Scores are broken down into four categories:

Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.

Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.

Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.

VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.

It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.

That's where the Style Scores come in.

To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.

As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.

For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: McKesson (MCK - Free Report) McKesson Corporation, headquartered in Irving, TX, is one of the largest global healthcare companies and the leading pharmaceutical distributor in North America. The company operates across four business segments: U.S. Pharmaceutical, which distributes branded, generic, and specialty drugs; RxTS, which provides patient access, affordability, and third-party logistics services for biopharma manufacturers and payors; Medical-Surgical Solutions, supplying alternate-site providers such as physician offices and home health; and International, primarily focused in Canada. Specialty pharmaceuticals, oncology services, and GLP-1 medications for diabetes and obesity are key growth engines. In FY25, GLP-1 revenues alone reached nearly $41 billion.

MCK is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.

Momentum investors should take note of this Medical stock. MCK has a Momentum Style Score of B, and shares are up 5.4% over the past four weeks.

Four analysts revised their earnings estimate higher in the last 60 days for fiscal 2027, while the Zacks Consensus Estimate has increased $0.06 to $44.28 per share. MCK also boasts an average earnings surprise of +3.1%.

With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, MCK should be on investors' short list.

McKesson (MCK - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.

Shares of this prescription drug distributor have returned +6.7% over the past month versus the Zacks S&P 500 composite's no change. The Zacks Medical - Dental Supplies industry, to which McKesson belongs, has gained 7.5% over this period. Now the key question is: Where could the stock be headed in the near term?

While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.

Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.

We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For the current quarter, McKesson is expected to post earnings of $9.63 per share, indicating a change of +16.6% from the year-ago quarter. The Zacks Consensus Estimate has changed -0% over the last 30 days.

For the current fiscal year, the consensus earnings estimate of $44.28 points to a change of +13.2% from the prior year. Over the last 30 days, this estimate has remained unchanged.

For the next fiscal year, the consensus earnings estimate of $49.95 indicates a change of +12.8% from what McKesson is expected to report a year ago. Over the past month, the estimate has changed +0.1%.

With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for McKesson.

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.

In the case of McKesson, the consensus sales estimate of $104.39 billion for the current quarter points to a year-over-year change of +6.7%. The $432.83 billion and $464.69 billion estimates for the current and next fiscal years indicate changes of +7.3% and +7.4%, respectively.

Last Reported Results and Surprise HistoryMcKesson reported revenues of $96.3 billion in the last reported quarter, representing a year-over-year change of +6%. EPS of $11.69 for the same period compares with $10.12 a year ago.

Compared to the Zacks Consensus Estimate of $101.92 billion, the reported revenues represent a surprise of -5.52%. The EPS surprise was +1.12%.

The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates two times over this period.

ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.

While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.

The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

McKesson is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about McKesson. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.