Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Strength Seen in McKesson (MCK): Can Its 6.8% Jump Turn into More Strength?

By Zacks Investment ResearchStock MarketsMay 10, 2021 03:33AM ET
www.investing.com/analysis/strength-seen-in-mckesson-mck-can-its-68-jump-turn-into-more-strength-200578850
Strength Seen in McKesson (MCK): Can Its 6.8% Jump Turn into More Strength?
By Zacks Investment Research   |  May 10, 2021 03:33AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

McKesson (MCK) shares soared 6.8% in the last trading session to close at $197.61. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 2.3% loss over the past four weeks.

McKesson saw a strong price increase, courtesy of its encouraging fiscal fourth-quarter 2021 results. Reported earnings surpassed the Zacks Consensus Estimate by 0.6% and also delivered substantial year-over-year improvement. Market is also optimistic regarding the company’s fiscal 2022 earnings guidance (in the range of $18.85 to $19.45) suggesting 9.5-13% growth.

Price and Consensus

Price Consensus Chart for MCK
Price Consensus Chart for MCK

This prescription drug distributor is expected to post quarterly earnings of $4.06 per share in its upcoming report, which represents a year-over-year change of +46.6%. Revenues are expected to be $58.73 billion, up 5.5% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For McKesson, the consensus EPS estimate for the quarter has been revised 0.8% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on MCK going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank 3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

McKesson Corporation (NYSE:MCK): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research
Strength Seen in McKesson (MCK): Can Its 6.8% Jump Turn into More Strength?
 

Related Articles

Tim Knight
Revisiting Equity Vs. Yield By Tim Knight - Jul 26, 2021

Some of you may recall an interesting ratio chart that I examine from time to time: this is the S&P 500 cash index divided by the 10-year interest rate. Over the course of many...

Strength Seen in McKesson (MCK): Can Its 6.8% Jump Turn into More Strength?

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email